Learn More about the Various Accounting Services Commonly Offered by Accounting Firms
Accounting is basically a term that can also be referred to as accountancy, and it is described as the processing, communication and the measurement of financial details and information about the various economic entities. Some of the common economic entities include corporations, federal agencies, municipalities, hospitals, and business companies. Accountancy is basically the language of business, for it is designed to measure the outcomes or results of the organization’s economic activities and it can bring or convey the details or information to different users, like management, creditors, regulators, and investors. There are basically several fields of accounting, namely the management accounting, the cost accounting, the tax accounting, the financial accounting, and the external auditing.
The title accountant is referring to the professionals who practices accountancy. Some of the common responsibilities and duties of the licensed or professional accountants include 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, preparing statutory and some other reports, preparing financial reports and the supporting schedules, and recording financial transactions and preparing pertinent adjustments. It is common for the licensed accountants to be working on a firm designed to provide accounting services.
The companies that are composed of licensed accountants is called as the accounting firm, and they tend to specialize in the different accounting services. There are basically four types of accounting firms, namely the bookkeeping accounting firm, the public accounting firm, the tax accounting firm, and the forensic accounting firm. The bookkeeping firms are described as small companies that are composed of few employees or staffs commonly called as bookkeepers, and such is designed and established to complete the fundamental or important accounting services and tasks to the business companies that are small or medium in size. 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. Tax planning and tax preparation for the business companies of all sizes and individuals is the primary services offered by the tax accounting firm. The forensic accounting firm is said to use legal policies and accounting skills to uncover and solve any illegal activities and fraudulent activities by investigating financial records. Some of the common services offered by accounting firms include bill paying services, 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, and implementation of new accounting software packages.