03 Jul

What Are the Different Types of Accounting Firms?

The financial aspect of any business, if you really delve into it much deeper, is actually a series of complicated tasks. Business owners would much rather focus their time, energy, and attention in furthering their company.

That is why most owners would just hire accounting services in Malaysia to help them with this aspect.

Accounting firms are usually follow the standards that are set by the GAAP and the Securities and Exchange Commission. They help companies read and create their financial statements, as well as providing consultation services whenever needed.

Today, I am going to talk about the different types of accounting firms there is.

Bookkeeping

Accounting firms that focus on providing bookkeeping services will usually complete fundamental accounting tasks that are needed by most businesses and organizations- particularly small and medium-sized businesses.

Such firms are manned by only a few employees and these workers may not be required to seek CPA certification, although they can most certainly get that to gain more credibility.

Bookkeeping firms provide services such as examining the company’s accounts receivables, accounts payables, credit sales reconciliation, bank reconciliation, preparation of accounting write ups, and recording and preparation of the company’s financial statements.

They may also provide additional services such as small business tax preparation, as well as loan package preparation and payroll.

Public Accounting

Public Accounting firms are much bigger than bookkeeping firms and may employ certified public accountants to work for them. They get accountants that specialize in various fields, including tax, management consulting, and auditing.

These firms will provide accounting services to public organizations such as government agencies, non-profit organizations, and similar companies.

Tax Accounting

Tax Accounting firms, as the name suggests, focuses more on the preparation and planning of tax obligations for companies of all sizes and may also provide similar services to individuals as well.

These firms will hire certified public accountants that are up to date with the latest tax laws within their state. Usually, the country’s Internal Revenue Code creates the tax laws for businesses and private entities.

Most of the tax accounting firms that you can find may require their employees to get additional education to keep them abreast with current tax laws and to ensure that they know how to use new technologies as they emerge.

These firms are usually busy come tax season and employees that are working in the field will usually render long hours of work at this time.

Forensic Accounting

Unethical practices are rampant in a business setting, which is why there are forensic accounting firms out there that can help with investigations on white-collar crimes.

Private and public companies alike may get the services of forensic accounting firms to help examine financial records that are deemed fraudulent.

Forensic accountants may, at times, work with law enforcement agencies. Their expertise may be required to help these agencies take legal action against companies that have been found out after doing corporate fraud.

They are needed whenever they need to testify and give their expert opinion in cases such as identity theft, embezzlement, stock price manipulation, money laundering, among many others.