11 Fantastic Accounting Services That You’ll Need

Accounting services vary depending on the business environment and management status. A small startup will not have their financial matters equivalent to a seasoned large-scale company. But irrespective of the company’s stature, need for an accountant is acute in every company. When you are hiring an accountant, it is essential to understand the different services that you can expect from them and whether it is suitable for your company’s requirements.

This post defines eleven different accounting services which small businesses or startups need.

1. Bookkeeping

There are various basic tasks every small and medium business needs to accomplish which is done by working closely with the accountant. These tasks ensure that the books of accounts are accurately maintained and all transactions are correctly recorded. It keeps track of your income, expenses, receipts and invoices. The overall service is known as bookkeeping. Those working as bookkeepers use various financial accounting software for this purpose or keep hard-copy records of the financial information to keep track of the transactions and reconcile accounts to ensure accuracy.

2. Chartered Accounting

This is essentially the task of the chartered accountant who is a member of the professional accounting body working for a certain company. They are trained in various areas of accounting ranging from management to auditing. They often focus on a particular section and specialize in particular fields of accounting. In short, they play a vital role in steering businesses in the right strategic direction by evaluating the financial performance of a company.

3. Tax Accounting

All companies have taxes to pay and an accountant who specializes with taxation can help you out with these services. Tax accountants are specialists in handling tax related claims and can suggest ways to minimize your taxes when it is unnecessary. They specialize in organizing and maintaining records of tax payments, recommending tax strategies and ensuring that all tax obligations are met. When you have issues with filing for tax returns or handling your tax compliance, they will be your best bet.

4. Preparing Financial Statements

This includes preparing income statements, cash flow statements, and a proper balance sheet. Many startup owners overlook the preparation of these statements though they are necessary for the smooth running of the business and taking critical financial decisions. When you hire an accountant for this purpose, not only will this information be well recorded, but they can also help you to understand the statements better so that you can take a well-informed decision based on it.

5. Financial Controller Service

This is a primarily management-oriented service and is considered the head of the accounting departments. These services are offered by financial controllers and their function is to give out work to the employees, hire new staff and supervise the assignments that are distributed. They also interact with the company’s clients to maintain a harmony between the company and its clientele. The financial controller is also responsible for conducting various internal and external auditing tasks to make sure the accounting department is working efficiently.

6. Forensic Accounting Services

The forensic accounting experts specialize in finding out tax discrepancies or any kind of fraud evasion and frauds in the records. They also help you find out missing funds and unveil the truth about various types of tax accusations that many companies face at times. The forensic accountants usually have a background in law, and they are like lawyers who also understand accounting. They have the knowledge and training to work with other law enforcement agents as and when required.

7. Management Accounting

The accountants providing this particular service keep track of your business assets and help you to manage them properly. They will have access to your company’s financial data and budget the company’s allowances accordingly when required. This is a particularly essential service when you are planning to launch a new line of products or services and the company undergoes major expenses in the process.

8. Accounting Audit

Those who are working in this particular department are responsible for tracking down financial receipts, invoices, and statements and ensure that the information is valid. There are also internal financial audits which help to track down past records and receipts of the company to get an in-depth financial information about the condition of the business. This will help you to take decisions for your business progress.

9. Bank Reconciliation

This service is particularly beneficial to prevent potentially fraudulent activities. Bank reconciliation is comparing the bank statement to your accounting books so as to find out whether balance in both statements match or not. It helps in identifying discrepancies that can cause financial damage if overlooked. This service is vital for startups to fix mistakes and bank errors before it’s too late.

10. Accounts Payable

Every business needs to purchase certain goods and services from other companies. These transactions have to be minutely monitored to avoid costly mistakes like billing for the same items twice, missing a payment deadline or paying a bill that is not legitimate. Accounts payable services are important for startups and small businesses as they help to sort out the bills and make payments smoothly ensuring such mistakes do not occur.

11. Accounts Receivable

Collecting the payments the company will receive, is as important as paying off due bills. The faster these payments are received, the more cash the company will have for investing in other ventures. Smaller companies have less staff and hence, these proceedings get prolonged. Hiring a dedicated account receivable service will ensure the payments are received on time, boost the collection rates and hasten the invoice processing time.

Your business may be small-scale, but to function smoothly, it requires proper organization particularly in the financial front.The above mentioned are some accounting services that are ideal for startups and small-scale business. Leave a comment below to let us know if this information helped you.