Branches of Accounts 2026
Branches of Accounts Accounting is often called the “language of business” because it records, analyzes, and communicates financial information that helps individuals and organizations make informed decisions. Every business—small shop or large corporation—needs a proper accounting system to understand income, expenses, profits, assets, liabilities, and overall financial health. Over time, the field of accounting has expanded into multiple specialized branches. Each branch focuses on a specific type of financial information and serves a unique purpose. Understanding the branches of accounts helps students, professionals, and business owners manage finances more effectively and make accurate decisions. This article explores the major branches of accounting, their importance, and how they contribute to the efficient functioning of an organization. ⸻ 1. Financial Accounting Financial accounting is the most common and widely used branch of accounting. It involves the process of recording, summarizing, and reporting financial transactions of a business. Key Features: •Prepares financial statements…