October 26, 2020

Financial accounting and services provided by accounting firms

2 min read
Financial accounting

Financial accounting

The business entities that have come closer to generate their revenue by 2 crores have a hard time keeping track of everything-expenses, financial records and financial health. Here comes the accounting firms or consultancy services which helps a businessman to regulate the entire process and keep track of his business records. Accounting firm services mainly include accounting and auditing which means they will keep track of financial records, track revenues and expenses and provide consultations on someone’s business’s overall financial health and will let you know about the tax payments before due time. The firm can also help with long range planning, such as buying property or financial needs.

The services that are provided by the accounting firms can be discerned in the next following points:

Accounting financial services:

The auditor helps the owner to regulate his financial accounts, annual expenditure and also informs him about further financial prospects:

  • General ledger and financial statement preparation
  • Bookkeeping(monthly/quarterly/annual)
  • Accounting system setup for new businesses
  • Computerized payroll services
  • Business tax return preparation(sales and use/business property)
  • Personal financial statements

Review and compilations:

The start-ups envisage the financial reporting process as an opportunity to provide constructive solutions to maximize company’s profit and efficiency. Financial reporting can be provided by the consultancy in several ways:

  • Review-some analytical procedures conducted with limited assurance report
  • Compilation-based upon client’s information provided with no assurance report
  • Preparation-based upon client’s information provided with no assurance and no report

Tax services:

  • The consultancy firms often take a proactive / reactive approach to tax services. They take a look at their client’s accounts and identify tax planning opportunities and minimize their present and future tax liabilities according to them. tax services offered are:
  • Tax planning and return preparation
  • Individuals
  • Corporations
  • Partnerships
  • LLCs and LLPs
  • Estates, trusts and gift
  • Not-for-profit organizations

Consulting services:

The consultants offer their expertise on areas that can affect the profitability and growth and also provide practical and technically rational solutions. In addition to all of these, they also provide strategies that are flexible and comprehensive and will directly address the issues regarding my business:

  • Accounting software selection and implementation
  • Type of entity selection
  • Buying/selling a business
  • Financial and retirement decisions
  • Estate, trust and gift planning

Estate planning:

This is a very important aspect of accounting firms. The estate planner will help regulate the transfer of assets to beneficiaries, provides security for the client’s spouse, and can help reduce or eliminate the tax due on the transfer of business and other assets. The owners of business entities are needed to be provided with business continuity. Succession of ownership is also essential.

Other services include mergers and acquisitions and employee benefit plans. Moreover, these are the general services provided by the accounting firms. They may vary from one firm to another, but services can always be customized according to the client needs.

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