Accounting is very important for any organization or business since the financial reports made are used for evaluating the progress and profitability and also assist in ranking with companies in the same business. It is a requirement for public companies to have their financial reports audited by external accounting firms. The firms that offer accounting services are therefore crucial to the operations of public companies. When an organization is hiring an accounting firm, the top factor they usually rely on is their accounting needs. This is because accounting firms offer a wide range of services such as account processing maybe issue of payments and processing of payable accounts, bookkeeping, tax returns, payroll services and much more hence a business will hire an accounting firm based on what precise service they are in need of. One of the services offered by accounting firms is bookkeeping which involves the elements of a company’s financial transaction that is an entry, storage, and recovery when needed. A lot of transactions occur on any business day and therefore bookkeeping takes a big portion of the accounting process. Find out for further details on outsources CFO right here.
A great bookkeeper will give your company correct records of the company’s financial records which is important since they are not only necessary for the business operations but are also a requirement by the law. When hiring the services of bookkeeping, ensure that the bookkeeper has the ability to keep up with legislative requirements and management reports of your company. Some accounting firms major in tax accounting. Tax accounting focuses on the tax payments and returns instead of financial reports. Depending on the tax registration type of your business, then you are required to file either VAT tax returns or corporation tax returns at the end of your accounting period. The tax returns calculate the amount you owe or are supposed to be refunded. VAT returns can be accounted for using various methods such as cash accounting, flat rate, annual accounting, and standard VAT accounting schemes. Forensic accounting usually analyzes information to be used in a court of law using the investigative and auditing skills gained from knowledge of accountancy. These cases could result from issues such as business valuation, fraud activities, embezzlement, and insurance among other cases. The forensic accountant will examine records of the company, the historical statements, analyze the transactions carried out, interview the individuals suspected of irregularities, and anything else that could possibly reveal misconduct or serve as evidence in court of law.