Branches of Accounting
There a various branches of accounting. Each branch specialises in a specific field of business where accounting takes place.
This is the main form of accounting. The accountant will mainly be preparing financial statements for the business so that it can be used by creditors, banks and financial institutions. The purpose of financial accounting is to calculate profit or loss made by the business during the year. These reports show the financial position of a business at a certain point in their financial year.
This type of accounting is used to determine the cost of the business’ products and to help management control the cost of its production to ensure maximum profitability.
Management Accounting or Managerial Accounting:
It is accounting for management. i.e., accounting which provides necessary information to the management for discharging its functions. It is the reproduction of financial accounts in such a way as will enable the management to take decisions and to control various business activities.
You would have seen that many of College SA’s accounting courses are provided by institutes such as CIMA and ICB.
What do these abbreviations mean?
Each abbreviation is for a different institution whose courses are provided by College SA.
CIMA is the Chartered Institute of Management Accountants and they have courses that focus on analysing information, formulating business strategies, identifying and managing risk, planning and budgeting. Management Accountants merge accounting, finance and management in order to make educated business decisions.
ICB is the Institute of Certified Bookkeepers and they train students to work in any area of bookkeeping. They offer courses for people who want to become a Junior or Senior Bookkeeper. Those qualifications guide the student on the way to becoming either a Technical Financial Accountant or a Certified Financial Accountant.
Each of these associations and institutions has courses available to suit your specific career needs. It is up to you to decide which accounting field you want to enter.
Read more about:
ICB (Institute of Certified Bookkeepers) - http://www.icb.org.za/
CIMA (Chartered Institute of Management Accountants) - http://www.cimaglobal.com
SAIT (The South African Institute of Tax Practitioners) - http://www.thesait.org.za/
SAIBA (Southern African Institute of Business Accountants) - http://www.saiba.org.za/