Financial accounting
The financial accounting ( financial accounting ) is a part of business accounting.
All business-related operations that can be expressed in numeric values , in this case factually and temporally ordered detected with the methods of accounting, posted to accounts and documented. At the end of an accounting period (month, quarter, year), the accounts are closed and a balance sheet and a profit and loss statement ( P & L) created, which proves the profit or loss of the company to internal and external parties. Financial accounting is required by law for certain types of companies.
The accounting department of a company has conducted transparently and at the request of the tax authorities also may be submitted even after years. There are at irregular intervals tax audits. Since the detection and evaluation of the data today is done by computer, checks are made within the programs and also outside by export and import of bookings in control programs.
In contrast, the accounts and cost accounting purposes only in-house billing and are not binding. It contains a breakdown in cost center or a cost unit accounting.
In larger companies, a division of bookkeeping in a customer, vendor and financial accounting is common.