As a business operator either as a sole trader or limited company, you will probably need financial services that are best provided by a firm of accountants.
The services of independent accountants will vary in many aspects from what you ‘d expect from an accountant on your payroll.
Bookkeeping services: This refers to the recording of your daily trading transactions. Therefore, all your purchase invoices, receipts for expenses paid, sales invoices, credit notes received and issued, delivery charges and delivery notes, cash from debtors and cash sales are entered into your accounting records, often referred to as your “books”. In this day and age, your “books” would typically be a software bundle, and the records would be obtained by using the double entry system and other accounting precepts.
Management accounts: These are extracted from the accountancy records that have been produced by the bookkeeping procedure. Management accounts are usually needed by the management of a business to offer a financial introduction of the efficiency of business over a set period. Regular monthly, quarterly and yearly management accounts are relatively conventional. Management would get a Profit and Loss account, and a balance sheet statement together with success ratios and maybe budget discrepancy reports if a budget had been set up throughout or prior to the accounting duration being examined
Financial accounts: The monetary accounts for companies need to comply with all the pertinent laws, in particular, companies act 2006. A requirement of the Business Act is that the accounts should follow genarally accepted accounting practices (GAAP). The company’s retained accounting professional would either prepare the GAAP accounts or recommend to the Directors in the preparation of the said accounts. Naturally, the nature of the service would depend on the agreement for services signed by both parties. Keep in mind that whoever prepares the accounts, the obligation for the accounts lies with the business’s directors. The financial accounts are seen by the management, the investors, the lenders and creditors, potential investors, and other interested Third parties. The financial accounts will likewise be sent to the relevant tax offices.
Audit: For certain classes of business depending on their size and market, an audit report is needed each year that the company fulfills the audit requirements plus supplementary years as figured out by the secretary of state. An audit report needs the reporting accountant to reveal a viewpoint on whether the accounts of the business reveal “a true and reasonable view” of the affairs of the company. It would be well beyond the scope of this or other articles to talk about in detail what can be among the most contentious documents in the business world today.
There are several other services a company of accounting professionals can offer, and these consist of management consultancy, business finance, general financial advice amongst others. In business, you will come to a point when you understand there is a need for expert business suggestions, an accountant should be high up on your list of individuals to call.