Learn More about the Various Accounting Services Commonly Offered by Accounting Firms
Accountancy which is also known as accounting, is defined as the communication, measurement and processing of financial information and details of the different economic entities. Some of the common economic entities include corporations, federal agencies, municipalities, hospitals, and business companies. Accountancy basically measures that results or outcomes of the economic activities of an organization, and it typically brings or conveys these details or information to different users, such as creditors, management, creditors, and regulators, and it is also considered as the language of business. The tax accounting, the financial accounting, the external auditing, the management accounting, and the cost accounting are basically the various fields of accounting.
The ones who practices accounting are called as accountants. The most common duties and responsibilities of a professional accountant to their clients include preparing financial reports and the supporting schedules, recording financial transactions and preparing pertinent adjustments, processing collections and invoice, processing payments, compiling and reviewing source documents that can support financial transactions, maintaining inventory records and assisting in the count of the inventory, filing tax returns and payment of the corresponding taxes through manual method or through the use of electronic devices, preparing tax returns, and preparing statutory and some other reports. Most of the licensed accountants can be found working under on an accounting firm.
Accounting firm is the term that refers to companies that are composed of accountants and it specializes in providing various accounting services to their clients. There are actually four types of accounting firms, namely the public accounting firm, the tax accounting firm, the forensic accounting firm, and the bookkeeping firms. The bookkeeping firms are established to complete the important and fundamental accounting services and tasks to the business companies that are small and medium in size, and this are defined as firms that are composed of few employees, typically called as bookkeepers. The firm that is designed to employ CPAs or certified public accountants that may work in different areas of accounting, like audit, management and tax consulting, is called as the public accounting firm. It is typical for the tax accounting firm to focus more on preparing and planning the taxes of their clients, such as individuals and business companies in different sizes. It is typical for the forensic accounting firm to use legal policies and practice accounting skills to solve and uncover any frauds and criminal activities by investigating the financial records and reports. The most common services offered by the accounting firms to the people or companies that hires them include payroll and sales taxes, business management, accounting assistance, bookkeeping, employee benefits consulting, general business consulting, budgeting and forecasting, business start-up consulting, financial assessment reports, general ledger review, financial statement preparation, income tax preparation and compliance, income tax planning and consulting, annual and quarterly financial reporting statements, implementation of new accounting software packages, and bill paying services.