Accounting firms offer different types of services. What they have to offer depends on the kind of knowledge, expertise, and experience they have. Expect them to provide some basic services like final accounts preparation, external auditing tax services, managerial advisory service, as well as accounting system design.
External auditing is the mainstay of such firms. It involves the assessment of financial statements that an independent CPA has made, to establish whether those records are fair. They shall sample some of the statements prepared and make a report of the findings. The audit does not normally cover all the statements prepared, but samples.
An auditor has to be independent of the company. This will ensure their report is objective and unbiased. The business must make sure there are no conflicts of interest in such a situation, to guarantee the authenticity of such a report.
Accounting firm provides tax services like tax preparation. They shall prepare the income tax returns, business and transfer taxes. This way, they represent their client when tax assessments are being done. This makes it necessary for accounting firms to be abreast of any developments in the taxation systems and regulations that govern the businesses of their clients so that they can advise them accordingly. They also will show them how to keep the taxation charges to a minimum. This knowledge also ads them when preparing income tax returns, and any other requirements from the taxation authorities.
They also offer managerial advisory services. This greatly smoothens the functions of management. They shall tell them ore about finance, budgeting, business policies, and organization procedures, systems, product costs, distribution and such business practices.
They shall assist in budgeting. This is where they help manage the available business cash by showing where it is most likely to be spent and how much will be needed. They shall then look at the expenditure as time goes, and compare it with the earlier projection. The difference shall be analyzed to see what can be improved so that the business stays in line with its budgets. This shall ensure the business is on the right track.
As part of their duties, the accounting firm shall also offer accounting system design services. They shall evaluate the current system the business is using. They shall point out the key areas for improvement. Accountants who do system analysis are best placed to formulate the necessary frameworks for such platforms and to put them in place so that they start collecting accounting data. This can be taken further to involve the setting up of a customized computerized accounting system for their client’s business.
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