Learn More about the Various Accounting Services Commonly Offered by Accounting Firms
The term accounting, which is also called as accountancy, is basically described as the measurement, the communication and the processing of an economic entity’s financial details and information. Some of the common economic entities include corporations, federal agencies, municipalities, hospitals, and business companies. Accounting is also recognized as the language of business, and it basically measures the results of the economic activities of an organization and it also conveys or brings the information or details to various users, such as regulators, investors, creditors, and management. The tax accounting, the financial accounting, the external auditing, the management accounting, and the cost accounting are basically the various fields of accounting.
The title accountant is referring to the professionals who practices accountancy. The common duties and responsibilities of a licensed accountant include 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, preparing statutory and some other reports, and preparing financial reports and the supporting schedules. Most of the licensed accountants can be found working under on an accounting firm.
The businesses or companies that specializes in providing different accounting services to their clients are called as accounting firms, and these are typically composed of licensed accountants. The four major types of accounting firms include the forensic accounting firm, the bookkeeping accounting firm, the public accounting firm, and the tax 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. 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. The firm that practices their accounting skills and uses legal policies to solve and uncover any criminal activities and fraud by checking or investigating financial reports or records is called as the forensic accounting firm. 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.