In Bangladesh, accounting services have traditionally been an important business tool. Accounting services have been used since the beginning of human civilization in a variety of forms and societies.
Accounting services are required by the majority of large organizations, SMEs, and entrepreneurs for all internal and external financial issues.
However, the very next significant question is raised: “Is Accounting Service Really Necessary For An Organization?”
Did you know? – Every successful business includes accounting. Therefore, accounting services are essential for running a successful business. In addition to other tasks, accountants play an important role in bookkeeping, audits, tax preparation, and consulting.
Without further giving too much away, let’s begin focusing on this!
Why Accounting Services Are Necessary To An Organization?
Accounting is essential in business because it allows you to track income and expenses, make sure statutory compliance, as well as provide quantitative financial information to investors, management, and the government for use in making business decisions.
Your records generate three major financial statements:
- The statement of income contains information about the loss and profit.
- The financial statement provides a clear picture of your company’s financial position on a specific date.
- The cash flow statement serves as a link between the income statement, balance sheet, and reports.
If you want to maintain your company’s running, you must maintain your financial documents clean as well as up to date. Here are just a couple of the purposes why it is critical for your company, large or small!
How Does This Affect Your Profitability?
Having the right accounting services makes you more profitable. Here are some examples:
- Using work costing or department tracking, you can create custom reports to “look” into your figures.
- Forecasting cash flow and planning to help you make wise financial decisions.
- Enhanced efficiency lowering the amount of time spent on errors, reviews, and data entering.
- An analysis is conducted to define pricing models, estimate supply lines, and make growth-oriented decisions.
Average Cost Of An Accounting Service
|
Business Size
|
Cost Per Month |
| · Startup Business |
$200 – $450 |
| · Small Business |
$450 – $650 |
| · Medium Business |
$650 – $2000 |
| · Large Business |
More than $2000 |
5 Top Benefits Of Accounting Services
The accounting Services allow a company to keep track of its financial activities. Accounting involves summarizing, analyzing, and reporting these transactions to oversight authorities, regulators, and tax collection entities.
1. Evaluating Performance: Your financial documents reflect your small company or corporation’s operational results as well as its financial position.
2. Ensures Statutory Compliance: While laws and regulations vary by state, proper accounting processes and systems will assist you in ensuring statutory compliance.
3. Develop a Budget and Future Projections: Budgeting as well as future forecasts can make or break a company and your financial documents will be critical in this regard.
4. Financial Statements: Companies must file their income reports with the Registrar of Organizations. Listed companies are required to register with stock exchanges.
5. Tax compliance: Accounting services can help businesses stay compliant with tax laws and regulations, minimizing the risk of penalties and fines. They can also provide guidance on tax planning to minimize tax liabilities.
4 Major Types Of Accounting Services
If you want to hire an accountant for your company or seek a career in finance and accounting, you need to be familiar with the many forms of financial accounting and its services.
There Are Four Major Types of Accounting.
1. Accounting In The Public Interest
Assurance services is another name for public accounting. It is the most comprehensive and diverse sort of accounting. These accountants can help you with bookkeeping, financial analysis, and account management.
2. Accounting Management
Management accountants record and evaluate financial data for your organization, which they use to execute activities such as asset management, budgeting, performance appraisal, and cost management.
3. Accounting in the Public Sector
Public accounting for government agencies is referred to as governmental accounting. Accountants ensure that income and expenditures are carried out in a legal manner. Government accountants are responsible for budgeting and asset management.
4. Internal Controls
Internal auditors examine the financial management processes of your organization or firm, looking for mismanagement, fraud, and waste. Budgeting, management processes, and activities are evaluated in light of laws and regulations.
Key Points
1. Accounting service is a crucial role in decision making, cost planning, and economic performance monitoring, regardless of the size of an organization.
2. While a bookkeeper can handle basic accounting tasks, more complicated accounting chores should be handled by a Certified Public Accountant (CPA).
3. The two key types of accounting for firms are managerial accounting and cost accounting. Management accounting aids management teams in making business decisions, while cost accounting aids business owners in determining the price of a product.
In A Nutshell
Accounting service involves documenting and analyzing commercial transactions, keeping books, and assessing the financial strength of an organization. In contrast, accounting practices vary based on the business climate, the position of the manager, and the experience of the accountant.
