What Are Different Types of Accounting Services?
Although your business might be showing signs of growth and improvement, there are chances that your loan applications or proposals can be rejected.
But why does this happen?
The reason can be due to incomplete or inaccurate financial statements for your company. Financial statements are imperative because correctly audited statements indicate economic health, which balances the loan rate in your favor.
In addition, experts at BoardRoom say that updated financial statements are a sign of transparency as well, giving your business more credibility.
Earning investors’ confidence is important, and the best way to achieve this is to be familiar with different kinds of accounting services. Some of the most common types of accounting services are:
1. Internal Auditing
Big companies usually have problems assuring the reliability and accuracy of all their financial statements. As much as you want this not to be the case, there are possibilities of making mistakes, not to mention having issues when preparing a financial statement.
Firms offering accounting services Singapore say that internal auditing focuses on detecting all the possible departures from accounting standards.
Most managers use this service, especially at the end of the financial cycles. This kind of service doesn’t encompass preparation because the auditors’ responsibilities are limited to giving out their opinions concerning the accuracy as well as reliability of a financial statement.
This is also referred to as an assurance accounting service. According to many people, public accounting is among the most varied and broadest types of accounting. Many accountants offering this service are more experienced when it comes to account management, financial analysis, and bookkeeping.
The responsibilities you need to expect from a public accountant ranges from consultations in matters associated with accounting system design and employee compensation to tax advice and preparation.
Some public accountants are also tasked to audit their clients’ financial records and ascertain that statements are properly managed.
This type of accounting service Singapore concentrates on communicating, interpreting, analyzing, measuring, and identifying all the important financial details to higher-ups. The service aims to look at both present and past information to determine the future of a particular business.
Accounting service is also focused on analyzing a company’s financial statements that managers use when making important decisions.
4. Financial Accounting
The key goal of this service is to record, track, and report on the financial transactions by simply generating different financial statements.
This should be carried out using some guidelines you can find in GAAP (Generally Accepted Accounting Principles) rules.
Basically, these rules are set by the FASB (Financial Accounting Standards Board) and solely designed to advocate for consistency when it comes to the reporting process.
Most financial accountants look at the previous performances, and unlike management accounts, they don’t look at the future.
Rather, they give an accurate outlook on the performance of a business for a specified period through financial statements. Completed statements are usually offered to external stakeholders, like financial institutions and investors.
5. Tax Accounting
This is one of the most popular types of accounting services that private individuals use. Every tax accountant is specialized when it comes to preparing a tax return and helping companies and people pay taxes.
Laws related to taxes are constantly changing and endlessly complicated. So that means tax accountants should be updated on all the regulations and rules.
With tax accounting services, you will save cash and work effectively for the individuals they deal with. Experienced accountants also know all the tax deductions for individual claims and the loan amount you will be eligible for, enabling you to keep the tax bill even low.
6. Cost Accounting
This is regarded as a kind of managerial accounting. It is mostly used in the production or manufacturing industry, where there are enough resources and a lot of costs to deal with.
Mainly, cost accounting services concern themselves with analyzing and recording costs of manufacturing. It as well looks at the variable and fixed costs of a company, including shipping charges and rent. Afterward, a cost accountant will look at how those expenses can be managed better.
7. Accounts Receivable
A/R (accounts receivable) refer to funds that customers owe to a company. Typically, this amount is recorded on the balance sheet of the company to serve as an important asset.
For you to keep track of the accounts receivable, businesses will need to set up a ledger. This ledger should have all the pertinent details concerning the outstanding balance of every customer.
Businesses will send out their invoices to clients every month. Those invoices usually list all the services or products, which customers bought, and the amount owed. After customers pay those invoices in full, the business will need to record payments on its ledger.
8. Project Accounting
You can hire project accounting services in order to work on certain projects. Based on the type of business, you may hire a project account as a contractor or long-term worker to manage projects on your behalf.
A great and healthy working relationship between you and the project accounting service provider may result in both referrals and repeat work.
Usually, project account services help to oversee things. This may include but is not limited to collecting invoices, approving billable hours, planning project budgets, preparing invoices, and approving expenses.
People looking to become one of the best project accountants can benefit a lot by taking human resources, taxation, risk management, cost accounting, and communications seriously.
9. Forensic Accounting
Every forensic accounting firm uses legal policies and accounting skills in order to uncover all the illegal as well as fraudulent activities.
Private and public companies work with forensic accounting organizations to investigate matters related to financial records.
Sometimes, a forensic accountant may work with federal and local law enforcement. Plus, if a federal agency or employers takes legal actions against people involved in fraudulent activities, the court of law will enlist the services of a forensic accountant to testify.
The Bottom Line!
While there are many kinds of accounting services, in general, every accountant helps to assess the finances of a particular organization and, at the same time, keeps records and analyzes transactions. But at the end of the day, it is imperative to know the right kind of accounting service your business will require.