Mike writes in with a question regarding his new business venture in the Houston area. He wants to know about the different types of accountants that can help with new business setup. The major branches of accounting are public, private and government accounting.
Public accounting: The public accounting profession has achieved the same stature as medicine and law. Public accounting refers to the work done by independent Certified Public Accounting (CPA) firms that audit the books of companies to insure that their financial statements and records are not materially misstated.
Private accounting refers primarily to the private sector of the economy and involves the analysis and recording of financial information by accountants who are employees of the business entity.
Governmental accounting: This branch refers primarily to the accounting functions performed for federal, state and local government institutions. Governmental accounting also includes the financial reporting functions applicable to hospitals, charitable organizations, colleges and voluntary health and welfare organizations.
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