Branches of Accounting - Types of Accounting - Types of Bookkeeping Accounts - Wikipedia of Finance

Top 3 Branches of Accounting / Types of Accounting


There are several branches of accounting to maintain accounts at present. Different types of accounting that range from maintaining records, auditing to preparing income tax returns. Accounting professional trend to specialize in one of these field as their career option as accountant.

For companies to make well-informed decisions, comply with regulations, and experience sustained growth, they must maintain a solid grasp of accounting disciplines as they traverse the complexity of global markets and dynamic economic environments. By identifying the unique roles and connections between these branches, businesses can use accounting to drive value creation, reduce risks, and accomplish strategic goals in the pursuit of long-term success.

Top 3 Branches of Accounting / Types of Accounting

The foundation of any organization is its accounting, which offers essential data regarding its operations, performance, and financial health. Many categories or sections divide accounting, each serving a specific purpose in managing business operations and financial reporting. Here we will explain what are the different branches of accounting or you can say various types of accounting to make you understand accounting in much more detailed way.

Financial Accounting

Under this accounting, primary focus is towards accuracy of financial data towards external reports. Accounting professionals with specialized in external reporting requires in-depth knowledge on accounting framework like IFRS (International Financial Reporting Standards), GAAP (Generally Accepted Accounting Principles), or government standards of the country such as Securities and Exchange Commission of USA, Securities and Exchange Board of India, etc. There is likewise regulator track, which requires join awareness of management and financial accounting. Financial accounting is one of the common branches of accounting.

Management Accounting

Companies maintain these branches of accounting solely for internal purposes. It’s in-depth information about company rather than the information available to the public. This information is use by an organisation to control and define strategic goals. Companies may use data to structure budget planning, forecasts, and organizational goals. They maintain such types of accounting purely for the purpose of managing strategic decisions.

Cost Accounting

Cost accounting further divides management accounting. The primary purpose of maintaining a cost accounting technique is to control and monitor the effective cost of production. Manufacturing companies mostly prefer such branches of accounting for controlling and maintaining costs.

Few Other Key Branches / Types of Accounting

These branches encompass a broad range of ideas, practices, and strategies designed to achieve specific accounting goals. Accounting departments handle everything from daily transaction tracking to strategic decision-making and regulatory compliance, making them crucial to a company’s ability to succeed financially and sustainably.

Public Accounting

Under this types of accounting, primary objective is to examine the financial statements and supporting documents of client companies. This assures that financial proclamations collected by customers genuinely exhibit financial position of an entity. Professionals involved in public accounting require in-depth knowledge of accounting frameworks and a reviewing-oriented personality to become an audit partner.

Government Accounting

It’s one of the branches of accounting system which manages funds uniquely. It is refer as federal accounting. Time to time disbursement of cash for various expenditures offered on account of governmental services. These services are requested by a government entity.

Governmental Accounting also maintains accounts for public sector companies. This financial and performance overview assist government in budgetary and various other decisions. Professionals need to have various different skill sets and specialized accounting within this area to accomplish government accounting.

Forensic Accounting

These types of accounting techniques are followed for examining and investigating disputed or lawsuit cases. Forensic Accounting plays a role of witnesses in courts of law for financial criminal or financial disputes cases.

These accounting assess financial effect of loss or detection of financial fraud. Organizations hire specialized forensic accountants for cases such as damage claims, insurance claims, suspected fraud and claims, business valuations, or any other finance-related matters.

Tax Accounting

All tax related matters are categorized into Tax Accounting. It is represented by the assessment rules recommended by the countries tax laws. Tax accounting rules, standards and principles are different than financial statement prepared for public reviews.

Professionals with tax accountants then perform adjustments into financial statements with implementing standards and principles of tax accounting described under countries tax laws. This information is afterwards used for tax estimation and tax planning.

Project Accounting

Under this branches of accounting, financial reports and financial statements are been prepared to track the progress of the project. One of the main components of project management is to maintain project accounting. This will assist management in various decision making steps.

Project accounting is the specialized branch of management bookkeeping focusing primarily on success of new launched projects. Those companies who want to keep track on projects rely on Project accounting for example: construction projects, road projects, bridge projects, rail projects, etc.

Social Accounting

A corporate Social Responsibility Reporting or Sustainability Accounting term refers to social branches of accounting. Primarily objective of organization’s behind implementing social accounting is to track environmental reports. Organization looks forward for social and ecological environmental reports.

Social accounting is a new types of accounting followed by organizations these days. It is still under phases of improvement. Considering growing awareness about environment among public has lead organizations to maintain such kind of accounts.


Lastly, the various different types / branches of accounting that supports the financial management and reporting operations of businesses throughout industries. Each branch of accounting contributes significantly to ensuring the integrity, transparency, and effectiveness of financial operations, from the strict transaction recording required by financial accounting to the strategic planning supported by managerial accounting and the assurance provided by auditing. In addition, advancements in technology and modifications to regulations persistently impact the accounting landscape, promoting ingenuity and flexibility to accommodate the evolving requirements of contemporary businesses.

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