In any business, it is the accounting department’s job to monitor how much money goes in and how much money goes out. If there is no proper accounting system, then it will be difficult to track the cash flow of a business– a problem that will eventually lead to or worse, bankruptcy. It is for this reason that most companies opt to acquire the services of accounting firms.
Accounting firms consist of professionals that can help you manage your finances properly. To give you an idea about it, here are some areas that most of these firms cover.
Bookkeeping is the most widely done accounting activity as it involves day-to-day monitoring of the company’s assets, liabilities and equity and the preparation of the financial statements. Most companies would usually hire an in-house bookkeeper, but there are those who choose to outsource as it is more cost-efficient.
If you want to avoid governmental audit and audit penalties, it’s best that you keep
Payroll involves the disbursement of the money to employees, vendors, and other manpower that has helped the business. Depending on the nature of the business, employees are given different types of compensation—commission-based, fixed amount, stock options, allowance, etc. Payroll services provided to help companies will put all of these into place so that everyone involved in your business is justly compensated. They will ensure that the right amount is given to the right employee.
Tax planning is the art of preparing for the amount of taxes the business has to pay to the government. It involves determining the right amount of taxes to be paid and reducing it as much as legally possible. Firms that provide services for accounting in Cyprus are extremely meticulous with tax planning. Although Cyprus has one of the lowest tax rates in the world, accounting firms are still very diligent with this.
Getting professional advice from an accountant or tax planner before your make big transactions will ensure that your business’s money is well-spent.
Auditing is the act of checking all the records of the company and the financial statements. Auditors are very important to the accounting cycle because they check everything before they are turned over to the respective government entities for monitoring and tax payments. There are two types of auditors: the internal auditor and the external auditor. The internal auditor audits the company’s records regularly in the whole year while the external auditor only audits the company’s records once per year.
These are some of the services that accounting firms can provide to businesses. Accountants serve a very important role in any company because they are the ones who monitor the figures. Without them, there is literally no financial order in the company. Firms that provide accounting services are known to be very reliable because their team who provide the services are all made up of professionals and do not need to be trained. This is why many companies prefer to outsource from firms instead of hiring them directly.