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Accounting Service: Role of Accounting Firms

3/3/2012 10:34:54 AM | by Anonymous

Accounting Service

The importance of Accountancy cannot be overemphasized. The success or fall of a company could not be anticipated without having a proper accounting system, by having your own accounting department or by getting a third party accounting service through an accounting firm. If you cannot keep up with your company’s demands all by yourself and is already having trouble correctly handling your accounts, may be it is time to hire an Accountant.

Accounting firms offer different services. There are four basic areas of expertise in a general accounting practice. First is Accounting and Record Keeping. It involves keeping track of Assets, Liabilities, Income, and Expenses. Assets refer not only to money in hand but also to properties which could be converted to cash. This is the most basic among the four since it makes sense for a company to keep track of its day to day activities. Next is Business Planning. This service can make a good accountant take the role of general business consultant. Accountants can offer advice on tax situation, financial statements, problem with cash flow, inventory pricing, internal controls and almost everything.

Another service accounting firms can offer is Tax Advice. There are two areas of tax related issues that accountants can provide assistance with: tax planning and tax compliance. Tax planning refers to decreasing your overall tax burden. On the other hand, tax compliance refers to obeying the tax laws. The fourth among the basic accounting services is Auditing. This service is most commonly required by banks as a condition of a loan. It can range from simply preparing financial statements to an actual audit.

The skill required for every accounting service varies from each other. Many firms charge the same rate for all kinds of services that they offer regardless of simplicity or complexity of the job. This is why determining exactly what you want an accountant to handle before hiring one is important.

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