Accounting is the backbone of any business. Thus, it is important to select the right kind of accounting service for your organization, regardless of its size and the nature of your business. In this blog, we have discussed the types of accounting services. It’ll help you decide what service you need for your business.
The process of recording the financial transactions of a business is accounting. The process includes summarizing, analyzing, and reporting the transactions to agencies and regulators. Accounting uses financial statements. A summary of financial statements over a specific period, a detailed report of operations of the business, financial position, and cash flow over a time period.
Accounting is one of the primary functions of almost any business. A bookkeeper or an accountant may handle accounts of a small business. Medium size organizations and large businesses can afford the luxury of hiring one of the best accounting services. The reports routinely generated by the accounting department like cost accounting and managerial accounting help the management make business decisions.
Bookkeeping
All accounting services involve bookkeeping. It is the process of keeping track of all the monetary transactions that take place in the business or company. Bookkeeping involves recording routine tasks that can include money spent to purchase files and papers among other daily expenses that a business incurs. It is the most basic form of accounting. While a few organizations make manual bookkeeping entries, some of them use accounting software to monitor financial information.
Payroll processing
The process of managing employee funds and taking care of retirement distributions is termed payroll processing. The human resource (HR) manager and the specialist oversee the payroll processing activities. A payroll process may include creating and distributing payslips, tax statements, and employee superannuation statements.
Tax accounting
This form of accounting is the process of planning, preparing and presenting tax accounts. Accountants who specialize in tax are the best ones to ask for help if you’re paying unnecessary taxes in your business. The professionals are also knowledgeable on the different tax fees for various areas of accounting services.
Financial Accounting
Business owners depend on financial accounting to determine the organization's financial health. Thus, it makes it one of the most important aspects of the business. For every company, financial accounting and reporting is the basis on which important financial decisions are taken.
Forensic Accounting
Big businesses and large organizations will have huge cash flows and account to deal with. When the magnitude of the accounts is big, there can be mistakes and discrepancies. Forensic accounting is the branch of accounting that deals with the identification of fraud in financial records. This division of accounting specializes in identifying tax discrepancies and tax evasion if any in the books of accounts. Business owners who deal with huge turnovers need to have an eye on any misappropriation of funds in the business. The team of accounting specialists identifies such issues and brings them to light with proof.
Cash flow forecasting
Every business will have financial goals. As a part of cash flow forecasting, cash inflows and cash outflows of a project are studied. Cash flow forecasting is essential for a business as it helps achieve business goals.
Budgeting
Budgeting plays a vital role in helping determine how the financial goals of the business can be achieved. Regardless of the business size and its nature, budgeting gives business owners a clear picture of the spending patterns that need to be corrected. Entrepreneurs will agree that a budget can either make or break a business. It takes an experienced professional to carefully plan the budget of a company and ensure that funds flow into the business as planned.
Governmental accounting
As its name suggests, government accounting involves keeping the books of accounting for government bodies. It includes tracking the income and expenses of the respective government-backed agency or body. The team responsible for government accounting ensures that transparency of accounts is maintained among the concerned stakeholders.
Internal auditing and accounting
Internal auditing is as important as the accounting process itself. The team entrusted with the internal auditing and accounting process makes sure that accounting rules and regulations are adhered to. Their role is to be on the lookout for malpractices if any exist in the books of accounts. The internal auditing and accounting team also checks if anything in the books of accounts of the business is in accordance with the law.