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. If an entrepreneur decides to deal with these accounting services, then he or she might fail in perpetuating the core activities of the business. Therefore you find these entrepreneurs finding accountancy firms that help in running these activities. Many entrepreneurs prefer to hire these firms because they are less cost-intensive when compared to hiring an accountant for that specific job. The services that they offer range from basic bookkeeping to complex activities like tax returns and audits. Here are some of the activities that accounting firms render to the companies in which they are hired to service.
Firstly every business that is operating in a normal way requires recording all the transactions that are being experienced on a daily basis. Of all the accounting services, bookkeeping is the commonest because it is practiced in all the business be it big or small in size. Because of the simplicity of the service, it is usually done by the junior accountants in the firm to run the accounts receivables and payables, general ledger entries, periodical trial balances, bank reconciliations, payrolls, billing and many more other activities. On top of that, the junior accounts are given the right to produce the financial statements.
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. Auditing is a service that involves going through the books of certain business establishments to know whether the finances allocated to them are put in the right use for the betterment of the business. 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. These accounting services predict for how long a business can survive in the market. Other activities that can be grouped here are services like perfecting the financial statements and helping the clients to create budgets.
Accounting firms are endowed with majority of financial ideas that boost the business when they are implemented in the right way. Having accounting firms in business is beneficial because they are readily available for consultancy if any happens. These accountants can advise on the need to alter the business plan and bringing down the tax that has burdened the client.