A complete guide to different types of accounting firms

Most of the entrepreneurs and small businesses have a lot of tasks to manage on their own. With the pressure of constant growth and increasing competition, sometimes it becomes really difficult for employees to focus on their core job and that’s where the downfall comes. That’s why most of the entrepreneurs and small business hire an accounting firm for managing their financial tasks so that in addition to expert service and reduced cost, employees will also be able to focus on their core job rather than giving time to the backend and administrative tasks.

Accounting firms offer the different type of financial solution for businesses and individual, which ranges from simple bookkeeping to tax filing. There are different types of accounting firms available in the market and choosing from the available types of accounting firms depends on the nature of your business and its needs. So let’s look at the different type of accounting firm and what services these firms offer.

Bookkeeping

These firms provide the most fundamental accounting tasks which are ideal for small businesses. It involves the day to day accounting tasks like accounts payable, bank reconciliation, payroll, accounts receivable, financial statement preparation, etc. These firms are small companies with few employees. They use advanced accounting technologies like Hosted QuickBooks for accurate and quick accounting. There are also some additional services offered by bookkeeping firms like tax preparation, loan package preparation, etc. They also allow you to implement your own accounting system through which you will be able to track your expense, revenues, locate trends and monitor budget item. These firms are generally used by smaller companies, and they act as an accounting department for their clients.

Tax

Tax firms are specialized in tax preparation and planning. Their service is used by companies of all sizes and by individuals also. Their tax planning involves minimizing your tax liability and burden while leading you towards a seamless tax filing. They are mostly updated with the new tax reforms made by International Revenue Code for companies and individual. The services of these firms range from high-income tax preparation to real estate taxes. Many big tax firms have a separate division for handling different types of taxes.

Audit

The main purpose of Audit firms is to audit the financial statement of your business and then give their opinion on it. You can consider the audit as an investigation to ensure that all your financial statements and records match your current business status. An audit is performed in various different areas like operational, information technology, compliance issue and financial. An annual audit is necessary for all the private and public companies in most of the places. Just like the tax firm, an audit firm can also be divided into several categories where each firm performs an audit for a particular type of business or audit.

Advisory

Advisory firms mainly play the role of a consultant and cover a broad spectrum of areas. They are specialized in certain sectors like financial planning, mergers, acquisition and give expert advice to their client for enhancing their performance, restructuring and dealing with risk. Hiring these firms gives a perfect shape to your decisions which are backed up by better insights and details.

Outsourcing your financial needs to an accounting firm is the demand of this era because, in addition to expert solution and advice, you are also able to save a great amount of money. For different financial needs, there are different accounting firms and you can choose the best one according to your need and demand.