They say that behind every successful business, there’s a good accountant.
While the quote is simple enough to understand, the context runs deep. Basically, any type of business will encounter financial issues along the way. A talented we can remedy the situation by offering various accounting services.
If you own a small business, you should understand that popular accounting services have different purposes and effects. Some are focused on taxes, while others are meant to improve cash flow.
Here are some of the most common accounting services for your business:
Bookkeeping is the simplest and commonly requested task from CPAs. Yet, it’s considered the most important accounting service for small businesses.
Bookkeepers are responsible for updating a company’s financial information through accounting software or manual methods. Therefore, a bookkeeper must have strong attention to detail. It also helps if the bookkeeper is tech-savvy.
Key Tasks for Bookkeepers: Financial Updating, Financial Monitoring, Accounts Payable & Receivables.
Taxes can make or break a business. Perhaps one of the oldest trades in the world is tax accounting. This is a sub-discipline which involves numerous accounting methods focused on taxes. Governed by the Internal Revenue Code, tax accounting is considered formal and complicated.
Rather than worry about tax rules and policies, you should focus your energy on finding a reliable tax accountant. CPAs can do tax accounting to a certain degree, and they can even formulate specific tax solutions.
Key Tasks for Tax Accountants: Tax Prep, Tax Planning, Financial Tracking, Financial Review.
Public accounting is the most popular form of accounting. Nowadays, you can see dozens of firms relying on the general capabilities of CPAs. Compared with private accountants, public accountants can help your business in many possible ways.
In a nutshell, public accounting is the discipline of examining and analyzing a company’s financial statements with the help of a third-party firm. Private accounting, on the other hand, is an internal service done by special private accountants.
If you need a general accounting approach for your business, a CPA’s expertise is more useful. Public accounting involves important financial details from the ground up, and this will allow the CPA to formulate goal-oriented solutions for your business
Key Tasks for CPAs: Tax Planning, Financial Planning, Review of Accounting Procedures.
Even though management accounting can help small businesses, this service is geared effectively for medium-scale and large-scale companies. Management accountants coordinate with managers in recording and analyzing a company’s financial data.
A skilled and determined CPA can commit to a long-term management accounting duty. As your business grows, the CPA specializing in management accounting can provide great assistance.
Keep in mind that management accounting tends to be costly, depending on the size of your business. If you want to save money but don’t want to cut down on the benefits of management accounting, be prepared to look for a CPA who’s willing to offer a flexible deal.
Key Tasks for Management Accountants: Budget Planning, Budget Review, Financial Assessment, Investor Relations.
Whenever there’s suspected fraud in a company or organization, forensic accounting can greatly help. Basically, forensic accounting is a discipline focused on financial discrepancies within an agreed time period. Forensic accounting is a highly specialized service.
Because forensic accountants deal with sensitive company data, they need to work with utter discretion. Also, forensic accountants have a clear knowledge of laws and policies. More often than not, forensic accountants coordinate with law enforcement agencies.
Before you get the service of a forensic accountant, you should do a preliminary investigation. This will ensure that all sources of company data are reliable. Plus, you will be able to see the full weight of the suspected fraud.
Key Tasks for Forensic Accountants: Fraud Investigation, Tracking of Missing Funds, Financial Discrepancy Analysis.
Technically, management consulting is a discipline that’s somehow different from general accounting services. Still, some CPAs provide this service and it helped many companies globally.
Management consultants provide an in-depth analysis of your company’s performance. This may or may not be limited to financial advisory. Management consultants also work on special performance review projects.
To gain the most benefits from a management consulting service, take the company review as a framework and set new goals from there. Just remember to keep your new goals aligned with your company’s primary vision.
Key Tasks for Management Consultants: Company Performance Review, Creation of Periodic Company Reports.
Auditing is an accounting discipline focused on financial verification. Accounting auditors are responsible for checking and reviewing a company’s financial records.
Getting the service of an accounting auditor is situational. You probably won’t need an auditing service all-year round, but it helps at least once. Remember that it’s better to hire an auditor instead of receiving an unexpected visit from an IRS auditor.
Key Tasks for Accounting Auditors: Financial Review, Financial Auditing