What are the 4 types of accounting?
A lot of companies are now outsourcing their accounting because of the numerous benefits it can bring. There are many types of accounting but today, we’ll talk about the main types you should be familiar with, as well as the various accounting services that you might need.
Governmental Accounting. This is the type of accounting that revolves around accounting duties concerning government agencies. The accountants under this service will ensure that your revenues and expenditures comply with government laws. Just like the other types of accounting, this service will also involve asset management and budgeting.
Internal Auditing. This involves analysing your company’s financial management process, inspecting for fraud or mismanagement. The accountants will also assess your company budgeting, management plans and operations for performance and efficiency and make sure they comply with government standards.
In addition, internal auditing can concentrate on specific areas such as environmental auditing, compliance auditing or information technology auditing to give you an expansive view of where your enterprise can be enhanced or advanced.
Management Accounting. The accountants in charge of this service will take a look and analyse your financial records and they will use it to carry out various tasks that will involve managing your assets, costs, budget and performance evaluation.
If you are an entrepreneur and you are planning to release new products, they are in charge of the financial aspects of the project such as budgeting, paying tax and preparing data that will be given to the investors. On top of that, they will also check your past and present financial records to help you plan for the future of your enterprise.
Public Accounting. Otherwise known as assurance services, public accounting is the most wide-ranging type of accounting. The accountants under this service are experts in account management, financial analysis and bookkeeping. When availing of this service, expect to receive advice for tax preparation, designing an accounting system or employee compensation. Other services include managing your statements properly and auditing your financial records. In a nutshell, they will check your financial records and help identify errors.
Finding and choosing an accountant is a very important decision that you need to do. Along with the main types of accounting are the different types of services offered. Aside from the services we have mentioned in the earlier part of this blog, here are some of the most common services offered.
- Bookkeeping and accounting. Entrepreneurs have a lot of things to think about which is why it is advisable to outsource this task to the experts. Accountants can give assistance by alleviating the huge burden of bookkeeping and accounting. Whether it is preparing your annual accounts, end of year accounts, approximated tax liabilities, management accounts and VAT returns, you can be assured that the accountants can handle it well for you.
- Payroll. This is a very complicated task as this needs to be done accurately and be submitted on time. Any mistakes can be very costly. If you are an employer and you want to run your payrolls on time, outsource this task from a reliable accounting firm. Aside from lifting an immense burden out of your shoulder, this service can be tailor-made to suit you and your business.
- Tax returns. If you are an entrepreneur and you have way too many tasks on hand, you will benefit from outsourcing this service. The government requires you to submit tax returns that are filled out completely, correctly and on time. Aside from that, you need to keep backup records so you can check them out in the future whenever you need them. The accountants will handle the correspondence with the HMRC, take care of your tax liabilities, determine the most suitable tax plan opportunities and complete all the tax computations that are required from you.
- VAT returns. If you find it hard to submit your VAT returns on time, it is best to find someone who can help you. Accountants are well-equipped to complete your VAT returns just in time so you can avoid incurring penalties. On top of that, accountants can also help you with VAT registration, advice you on which VAT schemes are appropriate for your enterprise and help you deal with any disputes that may arise from attending VAT inspections and Customs.
- Business growth. It is in the interest of entrepreneurs to experience growth in their investment. Accountants can help you set action plans and goals that will get you to where you want to be. They can also help remove the blocks that are keeping you from reaching your business goals and implement marketing strategies and customer service systems that will allow your company to operate efficiently and amaze your target audience or customers.
If you are still unsure if you want to work with accountants, here are some of the benefits of outsourcing your company’s undertakings:
Save time. Outsourcing your accounting tasks can help you focus on things that matter most to you such as thinking of new ways to increase your revenue or improving your business processes. Although business tasks are essential to keep your enterprise afloat, they can also act as a hindrance towards more productive tasks. By allowing others to manage your accounting and bookkeeping, you can offload these tasks and focus on other processes such as retention, training and recruitment.
Practical and accurate. Instead of maintaining a permanent staff to handle your accounting tasks, you can save money by outsourcing it to an accounting firm. On top of that, they can perform the task more efficiently because it is their expertise. Since you only have to pay for services that you require, you will only be paying the accounting firm based on the contractual obligations that have been delivered to you, making this an option that is easier to handle.
If you are a small and medium-sized business and you are looking for a reliable and trusted accounting firm, feel free to talk to Nigel Butler on 01793 852121 or email@example.com today. We have been working as chartered certified accountants in Swindon for more than 25 years!