Types of accounting


The basic purpose of accounting is to provide useful information about an economic entity, to facilitate the decision making of its different users (shareholders, creditors, investors, clients, administrators and government. However, taking into account the different information needs of the various user segments, the total information generated in one economic entity for different users has been structured into three subsystems.

Divisions of accounting types

1st Financial information subsystem:
 It is composed of a series of elements that configure it. Among the main ones are registration rules, accounting criteria, forms of presentation, etc. This information subsystem is known as financial accounting. Financial accounting is an information system that expresses in quantitative and monetary terms the transactions carried out by an economic entity, as well as certain economic events that affect it, in order to provide useful and safe information to external users to the organization for its taking of decisions.

2nd Subsystem of administrative information:
 They are grouped in the administrative accounts. Administrative accounting is an information system serving the internal needs of the administration, with a pragmatic orientation aimed at facilitating the administrative functions of planning and control as well as decision making.

3rd Fiscal information subsystem:
 similarly from the previous cases the fiscal accounting in an information system designed to fulfill the tax obligations of the organizations with respect to a specific user: Tax.


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