The Essentials of Accounting – Getting to Point A

Learn More about the Various Accounting Services Commonly Offered by Accounting Firms

Accountancy which is also known as accounting, is defined as the communication, measurement and processing of financial information and details of the different economic entities. Examples of the economic entities include federal agencies, corporations, business companies, hospital, and municipalities. Accountancy is basically the language of business, for it is designed to measure the outcomes or results of the organization’s economic activities and it can bring or convey the details or information to different users, like management, creditors, regulators, and investors. 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. It is typical for the professional accountants to work under an accounting firm alone or with their fellow accountants.

The companies that are composed of licensed accountants is called as the accounting firm, and they tend to specialize in the different accounting services. There are basically four types of accounting firms, namely the bookkeeping accounting firm, the public accounting firm, the tax accounting firm, and the forensic accounting firm. The bookkeeping firm is designed to complete basic or fundamental accounting tasks and services to the small-sized and medium-sized business companies, and they are small companies composed of few employees called as bookkeepers. The public accounting firm is said to employ CPAs or certified public accountants that may work in the various areas, such as management consulting, audit, and tax consulting. 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. It is typical for the forensic accounting firm to use legal policies and practice accounting skills to solve and uncover any frauds and criminal activities by investigating the financial records and reports. The most common services offered by the accounting firms to the people or companies that hires them include 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, implementation of new accounting software packages, and bill paying services.

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