Accounting enables an organisation to achieve its goals by assembling, organizing and communicating information about its crucial tasks. This makes accounting and tax services an integral part of the modern business environment. It means we cannot deny the role of individual accounting firms in modern business management because of their contribution toward two distinct accounting disciplines: financial accounting and managerial accounting. Business owners must collaborate with industry experts in modern times to improve and secure their finances.
Services Offered by Accounting Firms
An accounting agency does more than just manage the finances of small, medium, or large businesses. They offer several other services that help companies improve their financial health and streamline operations. These include:
Accounting Services
Accounting firms offer accounting services from start to end, such as bookkeeping and preparation of financial statements. The process usually starts with bookkeeping, which involves recording the company’s financial transactions. Later, these transactions are categorized into organised accounts. This is going to happen every working day throughout the year.
The next procedure is to prepare financial statements which include profit and loss statements, balance sheets, and other cash flow statements. Profit and loss statements display the expenses and incomes of the overall business. The balance sheet displays the company’s assets and liabilities. Finally, a cash flow statement shows the movement of cash within and outside the company.
Expert agencies provide all these accounting firm services to a company. They also indulge in monthly, quarterly, and annual reporting. The frequency of accounting usually varies based on the size of the company and its respective operations. Accounting firms ensure compliance when preparing these financial statements.
Taxation Services
The major source of revenue for a particular country’s government is from collecting direct taxes and indirect taxes. There are distinct laws across every region that govern both tax types.
The United Arab Emirates (UAE) has had a federal corporate tax since 2023. The standard rate for corporate tax in the region is 9%. A few businesses qualify for a rate of 0% while others falling under the criteria of the global minimum corporate tax rate agreement must pay a corporate tax rate of 15%. Hiring an accounting firm to deal with such taxes is prudent in this situation.
An accounting agency can help companies calculate taxes, file income returns, and other procedures. Accounting firms can also help in saving taxes. Businesses pay a large amount in taxes. So, it is prudent to have an expert look into legal ways of reducing this burden. Businesses may also own several other properties and may have to pay taxes on them based on the laws and regulations.
Hiring accounting and tax services will help here because it negates the pressure of dealing with multiple taxes. Businesses that operate globally may have to pay taxes in other countries. An accounting firm can easily deal with international taxes and make sure that they have followed all the regulations devised by the government.
Cost and Management Accounting
Businesses incur multiple expenses in the course of their activities. For instance, manufacturing goods and providing different services cost them money. They search for several ways to cut costs and maximise their profits. However, the management needs relevant information to enhance their profits. Accounting firms help with cost accounting calculations that assist the management in cost control. Management accounting, on the other hand, provides information that helps with key decision-making. Accounting firms often use financial accounting data to control these costs for businesses.
Cost accounting audit is mandatory for several companies because it is considered a useful tool for management. Accounting firms can help with findings from management to assist with the decision-making process.
Auditing
Auditing refers to an independent review of a company’s financial accounts and statements. The result of the overall review and the audit report is shared specifically with the shareholders, government, banks, and more. Accounting agencies can help with several types of audits, such as
- External Audit
- Internal Audit
- Statutory Audit
- Financial Audit
- Tax Audit
The external audit is conducted by independent auditors from accounting firms to understand the company’s financials. They usually examine the statements for accuracy of financial statements in this process. Several publicly traded companies have to get their records audited externally and usually sell shares to the public.
An internal audit is also an independent consulting which is usually done within the company. The company asks their internal auditor to perform this audit and review other crucial matters. Sometimes, they may collaborate permanently with an accounting agency to enhance value addition and improvement of the business.
A statutory audit is the calculation of financial statements to deal with some legal requirements. The accounting agencies review a company’s financial statements and report them to the concerned authorities.
A tax audit refers to the calculation of a company’s finances by or on behalf of the government’s tax department. The best part about leveraging accounting firm services is that these agencies perform all external, internal, statutory, tax, and financial audits. This helps businesses ensure legal compliance and internal competence.
Financial Advice
Modern accounting firms are capable of providing several ideas and strategies that prove valuable for businesses. For instance, these agencies can assist with financial forecasting, help with cases of mergers and acquisitions (M&As), and also provide chief financial officer (CFO) services.
Most accounting firms are experts in management accounting which helps businesses leverage important data to improve outcomes. Several firms also provide services related to insolvency and bankruptcy.
Businesses can easily look at new avenues and opportunities with some guidance with active assistance from accounting firms.
Contact Big4 for Accounting Services
Are you struggling with your annual financial statements or wish to indulge in management accounting for improved operations? Consider visiting Big4 Accountants and Consultants now. Our experts assist you with taxation, company registration, and several other accounting and tax services to enhance your business outcome.
Visit our website or give us a call to request a demo now.