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Anthony Nguyen

08 Aug 2020

5 minutes read

Different Types and How to Choose the Right One for Your Sm

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Accounting Services: Different Types and How to Choose the Right One for Your Small Business

 

There is a saying which goes like this, “behind every successful business, there’s a great accountant.”

 

Warren Buffet also said, “Accounting is the language of business.” 

 

These quotes are very easy to comprehend, but it has a deeper meaning and you will learn more about it today. Primarily, every business or company experience financial problems or obligations.

 

And a skilled CPA can provide a solution to the problem by proposing different accounting services. 

 

If you are an owner of a small business, you should know what the well-known accounting services are and evaluate your need for one. Every company has different needs, you just need to find out what will be your main goals. Other businesses focus on improving their cash flow, while others focus on their taxes. What about you?

 

Remember, one of the most significant decisions you will make for your small business is choosing the right accounting service. 

 

Here’s a guide on what are the different types of accounting services:

 

Bookkeeping

 

Bookkeeping is one of the most requested services offered by CPAs.

 

Bookkeepers are in charge of updating the financial details of a business. They do these by using accounting software, therefore, it is highly recommended to be tech-savvy. 

 

These are some of the main tasks of a bookkeeper: 

  • Financial Updating and Monitoring
  • Accounts Payables and Receivables

 

Tax Accounting

 

Tax Accounting is a structure of accounting that focuses on tax returns and payments. Tax Accounting is known to be complicated and formal and it is governed by the Internal Revenue code.

 

Instead of worrying about tax policies, we recommend that you focus on searching for a dependable and well-grounded tax accountant. CPAs can do your tax accounting and even create specific tax formulas and solutions.

 

These are some of the main tasks of a tax accountant: 

  • Tax Planning and Preparation
  • Financial Review and Tracking

 

Management Accounting

 

Management accountants collaborate with managers in analyzing and recording the financial data of a company or business. This type of accounting service is much needed for medium to large scale business, but it also can assist small businesses. 

 

CPAs who are determined and experienced can offer a long-term commitment to a management accounting responsibility. And as your business continues to grow, your CPA who specializes in management accounting can provide great help.

 

Just remember that management accounting may incur more costs depending on your company’s size. If you want to maximize the benefits of management accounting without breaking the budget, you must consider searching for a CPA who is willing to provide a cost-efficient and flexible offer.

 

These are some of the main tasks of a management accountant:

  • Budget Planning and Review
  • Financial Assessment
  • Investor Relations

 

Forensic Accounting

 

If there is a suspected fraud within your organization or company, forensic accounting will help.

Forensic Accounting is a specialized service that focuses more on monitoring any financial discrepancies for a specific time.

 

Forensic accountants are discreet when working since they handle sensitive company information. They also have extensive knowledge of the country’s laws and policies. 

 

These are some of the main tasks of a forensic accountant: 

  • Fraud Investigation
  • Tracking of Missing Funds
  • Financial Discrepancy Analysis

 

Management Consulting

 

Management consulting is where an in-depth study of your business’ performance. They can also work on performance review tasks. 

 

These are some of the main tasks of a management consultant:

  • Business Performance Review
  • Creating Periodic Company Reports

 

Auditing

 

Auditing focuses on verifying your financial status. Auditors are the ones who check and review your company’s financial records. 

 

These are some of the main tasks of a management consultant:

  • Financial Auditing and Review

 

Now, I hope that you are more familiar with the different accounting services that you can get. We will now move on to our guide on how you choose the right accounting service that your business needs.

 

How to Choose the Right One for Your Small Business

 

So, how do you choose what types of services you need or what company to hire for the job? Here are three main points you need to consider when making these vital decisions:

 

  1. Consider Your Needs and Objectives

You must consider why you need an accounting service. You can ask yourself these questions:

 

  • Why do you need to hire someone?
  • How often do you need this kind of service?
  • Do you need someone to work in your office or one who can work remotely?

 

Weigh the advantages and disadvantages to determine the best way to start and what will benefit your business the most.

 

  1. Consider Your Budget

 

You will need to determine how much are you willing to spend on accounting service. If your business is new, you probably will not have that much volume of financial transactions. So, we suggest that you get the services of an online accounting service instead of having an in-house accounting team. 

 

  1. If Accounting Service and Provider is a Good Fit for Your Business

 

When you are searching for an accounting firm, you must be comfortable with that company, its culture, and the individuals who will handle your account. 

 

When selecting an accounting services solution, these are some things you should take note of the accounting firm’s principles, location, and level of service. 

 

When doing your research for accounting companies, you should familiarize yourself with their mission & vision, and core values. Then, it will be easier for you to check if the company is a perfect fit for what you need and if their values are aligned with yours. You also need to know who the people are you will be working with. 

 

Choose a firm that will meet your accounting service requirements and the level of personalized service you are expecting. 

 

There are many things you need to consider when you are deciding on what type of accounting services your business needs and which accounting firm you should consider for the job. Regardless of which path you choose to take, just see to it that you take the time to research all your options before making the final decision.

 

Still, managing your company’s financials in-house? You might consider DD Business Analyst.