Accountancy firms provide accounting services with a target of leveling the financial requirements of a business establishment and also including the comfort of the customers affiliated with the business. Accounting services are quite hectic for an entrepreneur to perpetuate not unless he or she abandons the core strategies of the business. Therefore you find these entrepreneurs finding accountancy firms that help in running these activities. Many business establishments go for the accountancy firms who are cheaper to sustain that individual accountants. The services that they offer range from basic bookkeeping to complex activities like tax returns and audits. Therefore I will discuss some of the services that these accounting firms offer to businesses.
To begin with, a normally operating business is required to keep records of all the business transactions that happen every day. Of all the accounting services, bookkeeping is the commonest because it is practiced in all the business be it big or small in size. This accounting service is found to be very simple, and therefore the following activities are delegated to the junior accountants; operating the accounts receivables and payables, general ledger entries, monthly trial balances, bank reconciliations, payrolls, billing and others. The bookkeepers are given the right to produce financial statements on behalf of the firm.
The accountancy firms have a duty of providing auditing services to the respective businesses. Auditing is an accounting activity that entails the overall analysis and evaluation of an organization’s fiscal welfare. These activities extend from government auditing and internal auditing, where all that is done is go through the record books to ensure that all the assigned finances were utilized in the right way. Because of the increased levels of funds embezzlement, fraud, and tax evasion, some accounting firms are offering specialized forensic auditing that helps to track this missing funds.
Businesses are imposed with some tax regulations by the government, and therefore accounting firms are brought into the business to ensure that these businesses meet the statutory laws of paying the taxes on time to avoid penalties. Tax evasion can lead to closure of the business, and therefore the kind of accounting activities that are being perpetuated in your business can determine whether your business will run for extended period or not. Other activities that can be grouped here are services like perfecting the financial statements and helping the clients to create budgets.
Lastly, accounting firms offer advice to the clients on various financial strategies for the business. Therefore having an accounting firm in your business is, therefore, advantageous because they will be readily available for consultancy. The accountants at this moment provide advice like updating the business plan for the sake of better operation and methods of reducing the client’s tax burden.