Public Accounting Principles, customs and procedures
associated with the accounting of Public Administrations, this means the
accounting carried out within the different units that make up the public
sector, such as Ministries, Secretariats General, and any qualified body of
public ownership. It is characterized by its marked budgetary character and its
fulfillment within the objectives set politically.
Differentiate Public Accounting from Government Accounting.
The second corresponds to the concept of the previous paragraph, while Public
Accounting is a discipline derived from the General Accounting, which has as
its object the study of the organization, management and control of public
finances.
Private Accounting In contrast to the public accountant, who
serves many clients, in private industry the accountant is an employee of a
single company. The head of the accounting department of a small or
medium-sized business is usually called a controller, in recognition of the
fact that one of the main uses of accounting information is to help control
business operations. The comptroller directs the work of the accounting
department employees, is part of the senior management team responsible for
managing the business, establishing its objectives and ensuring compliance.
Accountants in private companies are large or small, they
must record the transactions and prepare periodic financial statements from the
accounting records. Within the general accounting area a variety of specialized
accounting phases has been developed. Among the most important we can describe
the following:
Fiscal Accounting It is based on the fiscal criteria
established legally in each country, where it is defined how the accounting
should be carried out at the fiscal level. The importance of fiscal accounting
for businessmen and accountants is undeniable since it includes the recording
and preparation of reports for filing returns and paying taxes.
It is important to note that because of the differences
between tax laws and accounting principles, financial accounting sometimes
differs a great deal from fiscal accounting, but this should not be a barrier
to carrying an internal accounting and financial accounting system Establish an
adequate tax register and this in turn promote it with the actions that have to
be carried out.
Financial Accounting It is a technique that is used to
produce systematically and structurally quantitative information expressed in
monetary units of the transactions carried out by an economic entity and
certain identifiable and quantifiable economic events that affect it, in order
to facilitate the various stakeholders to take Decisions in relation to that
economic entity.
It shows information that is made available to the general
public, and does not participate in the management of the company, such as
shareholders, creditors, customers, suppliers, trade unions and financial
analysts, among others, although this information also Has a lot of interest
for managers and managers of the company. This accounting provides information
on the financial position of the company, its degree of liquidity and the
profitability of the company.
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