Fundamentals

of Accounting,
Business and
Management 1
 Difference between
Bookkeeping and Accounting
Accounting is broader as it includes the
bookkeeping function.
Bookkeeping is just confined with the
recording of monetary transactions,
which is one part of the accounting
process.
REVIEW
Unscramble the words:
KSAOELRDTESH
NCROGRIED
ESOPCSR
BRANCHES OF ACCOUNTING
PICPA
Philippine Institute of Certified Public
Accountants is an association of Certified
Public Accountants engaged in the various
fields of accounting namely (specialized areas):
• PUBLIC ACCOUNTING (Public Practice)
• PRIVATE ACCOUNTING (Commerce and
Industry)
• GOVERNMENT ACCOUNTING
• ACCOUNTING EDUCATION
CPA

CERTIFIED PUBLIC
ACCOUNTANTS (CPA) refers
to those who had passed
the licensure examination
for accountants.
PUBLIC ACCOUNTING

• The accountants performs or offers to perform any activity

that will result to the issuance of an attest report that is in
accordance with professional standards.
• This activity includes:
1. Consulting services
2. Personal financial planning services
3. The preparation of tax returns
4. Advice on tax matters for a fee
Usually, a Public Accountant
works in a firm offering its
serves to various clients.
SyCip Gorres Velayo & Co.
Reyes Tacandong & Co.
Punongbayan & Araullo, Navarro Amper & Co.
R.G. Manabat & Co.
BDO Alba Romeo & Co., CPAs
PRIVATE ACCOUNTING

Private Accounting involves setting up

systems of recording business
transactions that are aggregated into
financial statements. It includes
development and interpretation of
accounting information intended to assist
management in operating the business.
A Private Accountant is a
salaried employee who
deals with the company’s
day-to-day accounting
needs.
branches

• Financial Accounting-provides economic

and financial information for investors,
creditors and other external users.
FOCUS:
recording and classifying of business
transactions while applying GAAP.
branches
• Cost Accounting covers the reporting of
financial information relevant to
manufacturing operations.
FOCUS:
accumulating manufacturing cost for
financial reporting and decision making
purposes.

Cost accountant determines the inventory

cost for financial reporting purposes.
branches
• Budgeting provides a detailed collection
and reporting of the expenditures and
revenues involved in a business or company
operations.
FOCUS:
1. tracks the financial details of the firm
including the money taken in and the
money spent by the company and the staff.
2. Assists in quantifying goals concerning
revenue, cost of sales or services and
operating expenses.
branches
• Accounting Information System – collects
and processes transaction data. Involves
designing of both manual and computerized
data processing systems.
• Tax Accounting deals with the preparation
of various tax returns and doing tax
planning for the business
• Internal Auditing reviews the business
operations to check if they are complying to
management policies. Normally, an internal
auditor is a hired employee of the company.
GOVERNMENT ACCOUNTING
A system used in government offices to record and report
financial transactions.
Government Accounting reveals how public funds have
been generated and utilized. It is employed in both national
and local governments.

Provincial Accountant
Commission on Audit (COA) Auditor (to various gov’t
agencies)
BIR Examiner
Budget Officer – Department of Budget and Management (DBM)
Bank Examiner – Bangko Sentral ng Pilipinas
ACCOUNTING EDUCATION
Responsible for training future accountants.
CPAs in Specialized Areas
1. Forensic Accounting- examine evidences in
stealing and fraud
2. Information Technology Services- design and
implement customized software systems.
3. Environmental Accounting- determined how
companies can be both profitable and
environmentally responsible.
4. International Accounting- knowledgeable in
international trade rules and regulations
international mergers, government
regulations, tax laws, and overseas
transactions. (CPAs in this area often travel
abroad and can speak and understand different
languages)
QUIZ
Identify the following:
1. Recording daily transactions and preparing
financial statements and related information.
2. Preparing tax returns and tax planning for the
business
3. Determining the cost of producing specific
products
4. Processing a company’s day-to-day accounting
needs.
5. Accounting system employed in national and
local government.
HOMEWORK
Answer Exercise
2-3 in your
notebook.
Choices:

a. Government Accounting
b. Private Accounting
c. Cost Accounting
d. Financial Accounting
e. Tax Accounting