Accounting Firms & The Services They Provide
Accounting is a necessary part of the business process and many business owners and entrepreneurs need the services of a good accounting firm in their fold to use them to their best business advantage.
Accounting firms are essential to business owners because without, for example, a system of internal controls which are also known as audit systems, it would be difficult for a company to evaluate the effectiveness of its internal controls. And monitoring this effectiveness if a company is determined on achieving its business objectives, acquiring reliable financial reports on its operations, prevent fraud and misappropriation of the business assets as well as minimise the cost of the business capital.
Running the business aspect of the business is challenging enough as it is, sometimes demanding long hours to be put in. There is just not enough time for an effective businessman to run the day to day operations and manage the booking side of the business as diligently as they should, and that is where the services of accounting firms come in handy.
Accounting Firms and The Services They Offer
The services offered by accounting firms would differ depending on the size, experience and specialisation of the firm in question.
In general, an entrepreneur can expect accounting firms to cover the following services:
- Accounting – High level accounting services are usually offered by CPAs employed by accounting firms. The range of services include assisting clients with budget creation, perfecting financial statements as well as preparing local, state and federal tax returns. Audit and business valuation services are also included under this branch, with some firms even offering forensic accounting services for companies who are faced with fraud issues.
- Bookkeeping – Services that fall under the bookkeeping category include accounts payable and receivable, billing, payroll, monthly and quarterly taxes, general ledger entries, bank reconciliations and monthly trial balances.
- Tax Filing and Planning – Accounting firms assist businesses in figuring out tax codes to ensure that the businesses financial reporting practices are in compliance with the current regulations, determine the company’s tax liability and ensure that the businesses meet the necessary filing requirements and deadlines. Accounting firms come in handy in this aspect to help businesses prepare the federal, state and local tax returns, and how to reduce the taxes to be paid.
- Consulting – Accounting firms also provide consultancy services for clients who need advice on the financial strategies they may need to take for their business. The subjects that consultancy would cover include advice or suggestions on how the client can lower their tax burden, review or suggest updates on business plans and in some cases, how to manage financial investments.
When selecting an accounting firm, consider what the needs of the business are and what kind of accounting services are the most important to the smooth running of the business. That would help business owners narrow down the kind of accounting firm they would prefer to engage with.