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People often confuse accountants with management. They believe that an accountant only deals with monetary transactions of a company and is responsible for small day to day tasks like payroll management, invoicing, etc. However, there are many other sides of accounting that your company may in desperately in need of.
Accounting firms offer multiple services to their clients to make sure their business stays financially organized. They also help in the formulation of business strategies to ensure growth in the industry.
These institutes are capable of dealing with more than just your day-to-day financial bookkeeping and payroll management. This is one of the primary reasons why most of the organizations and businesses, ranging from large-scale to small-scale, are heading towards accounting firms to acquire accounting and related services.
5 Accounting Services you might be Unaware of
Accounting and bookkeeping firms make sure that all the financial issues of a client are managed correctly and strategically in order to ensure profitability for the client. However, there are a lot of tasks related to accounting that need to be understood for a smooth operation. These firms do more than just bookkeeping but ensure proper accounts management.
The following are the top five additional services accounting firms offer besides the traditional handling of accounts.
1. CFO Services
CFO is the chief financial officer of a company. He controls all the financial matters of the company, including cash flows, financial planning, treasury, etc. Many accounting firms provide CFO services to small businesses to help them make forward-thinking financial decisions.
This service helps businesses in helping their clients with budget development, strategic plans for business growth, and financial projections. Every business needs a CFO to make sure that the financial performance of any business is up to industry standards so they can generate more revenue.
These services might be useful to your business if you have problems with your budget and need help in the preparation of financial forecasts of your company to acquire funding from shareholders and private investors. A good CFO Service can help with access and analysis of the financial health of a business to make sure that the company achieves its primary goals.
2. Internal/ External Audit
Most accountants are well equipped for dealing with external and internal auditing. Most of the companies are unaware of the importance of an internal audit. In an internal audit, the auditors look beyond the traditional financial reports. They access company’s internal controls and accounting tasks to make sure there are no risks.
The accounting firms also help businesses in the evaluation of the company’s activities in addition to consulting on various financial issues within the company. These firms also provide external accounting services to their clients, making sure that the company is following all accounting standards and practices.
3. Business Development
Every business needs to have a valuation done once a year to make sure there are no financial leakages. Accounting firms play an important role in obtaining audits and forming annual financial reports to give a complete picture of your business activities.
Valuation is an integral part of business development especially in case of potential mergers and purchases. If a business takes a loan or funding from a private investor, then all these transactions need to be recorded and accurately valued. That is where accounting firms can be a huge help in the maintenance and updating of day to day transactions.
These accounting firms also help new businesses and startups with financial projections. They use industry data in combination with the company’s financial records to form annual projections for business development. For people who are thinking of establishing their business abroad, some of the best bookkeeping and accounting firms in Dubai also offer initial funding for businesses with business expansion strategies.
4. VAT Services
Value Added Tax is a tax imposed on goods and services. The end-consumer is the bearer of the tax cost. Organizations and companies are legally obliged to account for this tax for the government. As we are all aware of the strict VAT regulations in the Gulf States, the accounting firms help businesses with VAT registration.
For a correct VAT return filing, it is fundamental for a company to keep detailed records of all the invoices and outflow. Over the last year, businesses have been investing in accounting firms that can help them with matters pertaining to VAT and its penalties.
For businesses lacking insufficient internal resources, third party accounting services should be hired for better support of VAT implementation. A competent VAT consultancy can help improve your business activities, operations, and VAT compliance. Following are some of the VAT services provided by an accounting firm:
- VAT filing and payment
- Vat compliance control and issues
- Minimize VAT liabilities
- Identifying risks and providing proper solutions
5. Tax Planning and Preparation
When it comes to businesses, there is a lot more to tax planning than filing tax returns. There are several other tax documents that have to be prepared by every business annually, e.g., federal and state tax files, IRS owners, employee documents, etc. Business owners can hire services of bookkeeping and accounting firms in Dubai to represent the business’s interest regarding official operations of the Internal Revenue Service (IRS).
Every business owner needs to create the most favorable tax scenarios in order to achieve constant growth in business. Accounting firms can provide the best solutions to the company to create a better tax sense of the company.
Accounting firms can also help businesses with estate planning and management. They can provide long-term solutions for business transfers to mitigate the estate and other miscellaneous taxes.
6. Take Away!
While most of the accounting firms specialize in small services like tax preparation, payroll services, etc., but most of them also offer a myriad of financial services like bookkeeping, business valuation, auditing, etc.
A right accounting service provider can help your business in the identification of any business gaps and evaluating current strategies for a more prosperous future business.
Now you know how you can make business easier for yourself by investing in these value-added services to expand your operations.
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