Accounting: Need of the Hour

Accounting: Need of the Hour
February 04 06:51 2017 Print This Article

In order to get a clear picture of a company’s state of affairs, it becomes necessary to indulge into the services provided by the diverse accounting firms. An accountant analyses the true financial condition of an organisation to dispense it to the different parties who have certain financial relationship with the concerned organisation. From a plethora of accounting firms engaged into the business of offering Accounting Service (Raamatupidamisteenus) to the corporate, it is requisite to look into the past records of such firms, so that a true view of the company’s state of affairs is available to all.

Demand for Accounting

Depending on its size, a business organisation has to mandatorily undergo a few accounting requirements as prescribed by the Generally Acceptable Accounting Principles (GAAP).

Large mergers of few of the accounting firms in the late twentieth century led to the formation of the well-known Big Five:Related image

  • Deloitte
  • Ernst & Young
  • Arthur Andersen
  • KPMG
  • PricewaterhouseCoopers

The services of the accounting firms may be required in the following fields:

  • Public Accounting: Considered as the widest and most varied type of accounting, public accounting assists a corporation in tax-related matters, consultation in the areas of employees’ compensation, financial analysis of the company, preparation of financial records and account management system.
  • Governmental Accounting: The accountants are involved in the process of budgeting and asset management for the governmental agencies. It makes sure that all the revenues and expenditures are carried out in compliance with the prescribed laws.
  • Internal Auditing: To avoid mismanagement, fraudulent practices and disobedience of the accounting laws, internal auditors prepare audit reports stating the truthful financial position of a company. This sort of information is quite useful for those related to the company in different capacities as investors, creditors, shareholders, etc.

Types of Accounting

Accounting incorporates a lot of varied accounting services for the following purposes:

  • Book-keeping: The process of book-keeping is generally followed by the small to medium-sized business entities where the accountants work to find out the accuracy of the financial statements and records and also to analyse the bills payables and receivables.
  • Taxation: No business wants to pay a huge amount in the form of taxes imposed. Hence, the accountants offer consultation services to the organisations to reduce the payment of taxes and to inflate the net profit.
  • Forensic Accounting: This type of service is needed to track any discrepancy or funds mismanagement  in the course of accounting. A forensic accountant functions as law enforcement agent for a company helping it to be aware of any tax-related allegation or any other such issue.

Today’s complex business scenario makes it important to take the services of expert accountants who are well-versed with the varied forms of business transactions. Therefore, the process of accounting can take the help of accounting service to furnish a clarified picture of an entity, allowing it to plan its upcoming projects well in advance.

 

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Lana Walton
Lana Walton

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