What Does a Public Accounting Service Do?
Public accounting is an accounting service which is offered to clients. Common services provided range from auditing to tax, general accounting, and consultations. Some firms could provide other services depending upon their clients’ needs. Most working in this industry will be fully licensed, usually holding a Certified Public Accountant certificate. This is a worldwide license which shows that an accountant has had rigorous testing in order for them to obtain this.
Tax services include the preparation of annual returns, for either personal or corporate firms. CPAs within this field spend a lot of time learning and keeping ahead of current tax laws. This usually means going to seminars or other training courses, to make sure they only provide the best services. Tax planning provided through the year will allow tax accountants to help companies find ways to reduce their tax liabilities. Targeted planning could also be required, when a company makes a decision regarding its work, for example, spinning a division off.
Auditing is the best-known accounting service available. Accounting firms will come in and test their client’s books for accuracy. Publicly held firms will undergo audits, in order for them to meet all governmental guidelines. Audits will mean planning and tests; this is done to determine the scope of their clients’ audit. Once this is completed, the accounting service will then release an official opinion which contains their opinion on the company’s finances.
General accounting allows a company to outsource their financial reporting. The company will pay to a professional accountant to maintain their ledger and prepare all financial statements. The client will send all their financial information to their accountants and will leave them to prepare the documents. This works well for smaller companies or ones that cannot spend sufficient time completing their accounting audits.