There are various types of services offered by accounting firms. The scope of services provided by the audit firm depends on their knowledge, experience, and expertise. Some of the common services include final report preparation, external auditing, tax services, business advice, and accounting system design.
The accounting firm also handles various tax services. Accountants prepare income tax (ITR), business tax, and transfer reports. In this structure, accountants represent customers in tax assessment and taxation. Accountants should always be aware of the BIR regulations, dynamic tax laws, and local tax rules influencing their consumers so that accountants can provide appropriate advice on how to minimize taxes.
Knowing the tax rules also serves as a guide for tax advisors to prepare their clients' income tax returns, as well as other information provided to related services such as the Internal Revenue Office. For this, you need to Schedule an Appointment and Seek Professional Tax Advice from the accounting service providers.
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Accounting System Design:
Accounting firms can also provide accounting system design services. This includes an assessment of the company's control arrangement to identify areas for enhancement. An auditor who works as a systems analyst also designs accounting applications and installs accounting systems for the collection of accounting data. This can also include creating a personalized computer accounting system for the customer's company.
Budgeting involves managing cash effectively by forecasting or estimating monetary targets in the future period. Periodically, accountants review actual cash flow versus what it should be. These differences are then carefully analyzed by management to determine possible causes, whether this is a favorable or unfavorable scenario, and how they can be controlled. The reason for conducting the analysis is to increase the accuracy of forecasts and reduce the gap between budget and actual implementation.