Different Forms of Accounting

In its way, accounting is just as diverse a field as medicine. The flow of money is as vital to a modern economy as blood is to a human body, and accountants are the specialists who monitor economic activity. There are a wide range of accounting careers available, but most fall into a few broad categories.

Public Accounting

Public accountants are generalists, providing a wide range of accounting services to companies and individuals. Public accountants prepare tax returns, prepare financial reports and sometimes audit their clients' books to ensure that their internal bookkeeping is accurate and meets appropriate standards. Some accountants become financial or estate planners, assisting the affluent in managing the tax implications of trust funds, retirement planning and wealth preservation. Others focus on forensic accounting, analyzing a company's books to uncover fraud, embezzlement, inadequate reporting and other problems that can cause companies to fail or investors to lose their money.

Management Accounting

While public accountants make their services available to interested buyers on the open market, management accountants work as employees within a specific company. Their role is to manage the company's internal record-keeping, providing accurate information to its management team for deliberations. Management accountants create and monitor internal budgets, audit the operations of specific departments and analyze the company's financial performance. Some also review the company's potential investments, from portfolios of stocks or bonds to potential acquisition targets.

Government Accounting

In some respects, government is the ultimate form of management accounting. Government accountants track and audit the performance of government units from single offices to entire departments. They also help create government budgets, review tax revenues and audit questionable individuals or companies to assess their compliance with prevailing laws and regulations. The 2011-2012 edition of the Bureau of Labor Statistics' Occupational Employment Statistics shows more than 100,000 accountants in local, state or federal government service.


Internal auditing is often an aspect of management or government accounting, but it's a specialized enough field that many accountants focus strictly on auditing procedures. Internal auditors monitor their company's financial activity, seeking signs of mismanagement, inefficiency or illegal actions. Their role includes defining and implementing systems to improve the company's accounting processes, as well as making it harder for any illicit activity to go undetected.