Incredible Lessons I’ve Learned About Businesses
The term accounting, which is also called as accountancy, is basically described as the measurement, the communication and the processing of an economic entity’s financial details and information. Some of the common economic entities include corporations, federal agencies, municipalities, hospitals, and business companies. 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. There are basically several fields of accounting, namely the management accounting, the cost accounting, the tax accounting, the financial accounting, and the external auditing.
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.
Accounting firm is the term that refers to companies that are composed of accountants and it specializes in providing various accounting services to their clients. There are actually four types of accounting firms, namely the public accounting firm, the tax accounting firm, the forensic accounting firm, and the bookkeeping firms. 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. Tax planning and tax preparation for the business companies of all sizes and individuals is the primary services offered by the tax accounting firm. 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 various services that are commonly offered by the accounting firms include implementation of new accounting software packages, bill paying services, 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, and annual and quarterly financial reporting statements.