Why an accounting firm makes a great business partner

 Accounting firms are companies that specialize in providing accountancy services for their clients. These services include handling clients' payroll, taxes, accounts payable, and accounts receivable. Some accounting firms also offer advisory or auditing services to clients. Accounting firms provide financial services to help their clients, as business owners, stay financially organized. Business owners often see accounting firms as a business partner and not just as a service provider.

Different businesses need different types of financial services. When a company is looking for an accounting firm to appoint, they must first consider the types of accounting services they need. Accounting services include major accounting services and other accounting services. 

Major accounting services

Major accounting services include:

1. Public accounting: Certified Public Accountants (CPAs) perform public accounting services, including preparing and reviewing financial statements.
2. Management accounting: Management accounting refers to how accountants analyze historical and current data to develop an efficient and effective business model for their clients. Management accounting processes include budgeting, performance evaluation, and cost management. Management account services include advisory services on the improved utilization of a business' resources to meet the business' objectives. 
3. Governmental accounting: There are specific accounting issues for governmental bodies. The purpose of governmental accounting is to help the different government sectors budget and utilize their resources effectively and in line with the national and local legislative framework. 
4. Internal auditing: Internal auditing services help businesses produce reliable and accurate financial statements. Internal auditing services enable companies to identify deviations from accounting standards but do not include preparing the financial statements.

Other accounting services

Other accounting services include the following:

1. Tax planning and preparation: Accounting firms can do tax planning and preparation for businesses, including state and federal tax returns. They can also prepare other documents, such as 1099-Misc and employee W-2 forms. Some accounting firms also handle information requests and audits from the Internal Revenue Service on behalf of their clients. 
2. Bookkeeping and payroll services: Many small business owners are experts at their own business' products and services, but they don't know how to manage their business' financial affairs. Accounting firms can help record a business' cash flow and create profit and loss statements. 
3. Business valuation and development: Accounting firms play a critical role in creating valuation reports or obtaining audits, which are sometimes required by financing firms. Accounting firms also provide advisory services for mergers and acquisitions. Some accounting firms can help new businesses create pro forma financial projections and statements supporting fundraising initiatives.
4. Forensic accounting: The purpose of forensic accounting services is to detect fraud and other financial crimes.