Accounting Services: What you need to know

Accounting services have professionals that can provide support to small businesses that are just starting out to make the right investments and structure their businesses in a way that ensures financial stability on a monthly or annual basis. With such important decisions that can start business owners off on the right foot, it’s crucial that businesses know the best accounting services that are available for businesses to contact.

The types of accounting services

Accountants can help their clients in a variety of ways. While there are different types of accounting services, the four main accounting services are:

1. Public accounting

Public accounting provides the most comprehensive service where the accountants specialise in bookkeeping, analysing finances, and account management. The accountants create accounting software, identify financial errors, compensate employees, and prepare tax forms on time so businesses are compliant with HMRC. They also make sure that businesses are paying the right amount of VAT, that they are registered appropriately with HMRC, and that their accounts are up to date.

2. Management accounting

Accountants record and analyse a business’s financial accounts, and use that analysis to support businesses in managing costs and assets, as well as budgeting and evaluating the business’s performance. They also help people who are self-employed keep track of their accounts so they have all the information they need to grow their personal business. 

Accountants can also help people who are self-employed to make decisions about getting registered and making sure that they are paying the appropriate amount of VAT.

3. Government accounting

Government entities also need accounting services. A government accountant ensures that all the revenue and government spending are within the legal guidelines. 

Accountants are also providing support to the government to manage its assets, and creating and maintaining a budget. 

Government accountants can also provide advice about the different ways that the government can budget it’s accounts.

4. Internal auditing

Auditors are accountants that check the inner workings of a business. This includes things like fraud, management, and financial waste in business accounts. Accountants who are auditors make sure that the business is following HMRC rules and regulations, and paying the appropriate amount of VAT. The auditor accountant can specialise in any auditing field, like environmental auditing, compliance auditing, and technology auditing.

Different businesses need different types of accountants, and different accountants will specialise in different areas to help businesses keep their accounts accurate. Now that we know the different types of accountancy, let’s talk about why a business might need an accounting service.

5 reasons why businesses need an accountant

• Structuring businesses for the best

One of the first few things to think about when starting a business is if it needs to be registered. Being registered means to register with HMRC as incorporated (also known as Inc.), a limited liability company (also known as an LLC), and so on. 

But while we might think we know best for ourselves and our business, there are expert professional accountants who specialise in these areas and can advise and support you on the best way to structure your business so it’s as profitable and efficient as it can be.

• Analysing finances

By being able to analyse your financial accounts, you can learn much more about your business. As a business owner, you can find out where you’re losing money, where you’re most profitable, and focus on these areas to help grow your business without wasting time on trying to figure it all out for yourself. An accountant can support you in creating a business plan and carrying out a financial analysis to assess how well your business is sticking to that plan.

By investing your time and money in getting your accounts together by a professional accountant, the accounting services you use can also save you time in the long run.

• Software advice

Any business needs an accounting software to assess how well their business is doing, to pay their team, and provide any other necessary reports on their account. But without the support of an expert professional accountant, you might make a mistake in selecting the software simply because it is free—or worse, you might end up purchasing a fake one. 

Accountants can help you sift through the software out there and support you in choosing the best one for your business as part of an accounting services package.

• Expense tracking

As with any budget, tracking your expenses is crucial to understanding your business and clients’ needs. Without understanding how much money is coming into the business and how much the business is spending on a monthly or annual basis, it’s hard to get an accurate picture of the health of the business. 

An accountant can help you and provide advice about how to keep track of your transactions and keep an accurate record of your expenses so you always know where your business stands.

• Taxes

We need to pay taxes annually and make sure that we are following the rules and regulations outlined by HMRC. This also goes for any business that needs to prepare tax returns. 

By hiring an accountant, you can rest assured that an expert accountant is taking care of your finances according to the law. They can make sure that your business is paying the appropriate amount of VAT, as well as give advice on getting registered.

As we can see, hiring an accountant helps a business in assessing their financial accounts, bookkeeping, and getting the right business structure and registration. Accounting services can differ depending on the type of business, the management style, and experience of the business.

You can also seek out a professional expert in the field of accounting that you’re looking for, like a chartered accountant, forensic accountant, or an auditor. It’s important to know your business needs to hire the right type of accounting service in order for them to really be able to help you.

It’s also important to remember that accounting services have to follow the rules and regulations of the company and the state., which means you can rest assured that you will be HMRC compliant and pay the right amount of VAT.