Areas of specialization as an Accounting graduate

Still wondering which area of accounting to specialize in? Here are 5 areas of accounting:

 

1.    Financial Reporting Accounting: This area of accounting deals with recording, analyzing, summarizing business/ financial transactions. Transactions recorded are usually used to prepare management account such as Statement of Profit or Loss (Income statement), Statement of Financial position (formerly known as balance sheet), statement of cashflow, notes to the account etc. To excel in this area, you need a sound knowledge of Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standard (IFRS).

 

2.   Public Sector Accounting: This area is similar to financial accounting. While IFRS is to Financial Accounting in the private sector, IPSAS is to Financial Accounting in the public sector. To excel in this area, you need a sound knowledge of Generally Accepted Accounting Principles (GAAP) and International Public Sector Accounting Standards (IPSAS).

 

3.   Cost Accounting: This area of accounting deals with recording, analyzing and summarizing cost associated with business operation. It involves analyzing and minimizing cost. This area of accounting is common in manufacturing industries that incur significant amount of cost.

 

4.  Audit and Assurance: This involves an independent analysis of a business Financial statements to ensure accuracy and compliance with industry standards and best practices. To excel in this area, you need a sound knowledge of Generally Accepted Accounting Principles (GAAP) and International Standards on Auditing (ISA).

 

5.  Tax Accounting: This involves organizing and preparing tax returns of a business. It enables businesses figure out their tax liability, how and when to remit and also how to eradicate tax penalty. To excel in this area, you need a sound knowledge of recent tax reformations, rules and regulations.

 

NOTE: I only listed areas that fresh and recent accounting graduate can easily navigate into. Other areas of accounting which require more experience and technical expertise are:

·      Management Accounting

·      Forensic Accounting

·      Accounting Information systems

Wow! This is informative. For the public sector accounting, does this mean I should aspire to work in the finance department of government-owned organizations like Office of the Accountant General, Ministry of Finance,  Security and Exchange commission?