Accounting firms do more than just accounting. The services they provide can maximize profits and support your finances. Businesses and people should consider accountants a critical element of financial planning.
No accounting firm offers every service, so ensure your advisors are best suited to your specific needs. Knowing where to start is the first hurdle. We’ve made it easy for you with an overview of the top services other than accounting that a firm can offer.
Tax Consultation, Preparation, and Filing
Accounting firms can prepare state and federal tax returns for businesses and individuals.
For individual tax filers, accounting firms can help them plan throughout the year to save money and avoid costly filing mistakes that may incur heavy penalties.
They also help businesses of various sizes and business structures. As well as corporate returns, firms can handle end-of-year tax preparation, such as managing employee W-2s. There is a lot more planning involved than filing a tax return.
Accountants also can advise clients on making tax law work for them. All taxpayers have the right to representation, according to the IRS. Accounting firms can help businesses represent their interests with consultation for filing procedures, information requests, and audits.
Most firms don’t work alone to achieve these answers. They work alongside attorneys, financial planners, and insurance professionals to create a strategy to lower taxi payments and avoid costly mistakes.
Most firms offer a business advisory service that helps individuals and small businesses alike plan for their financial health.
Many firms can help clients prepare personal financial statements. These reports allow the client to obtain a comprehensive picture of financial standing and wealth management. If the client has specific goals, accountants also can evaluate the situation and provide a plan for accomplishing those aims, whether saving for a college fund, planning for retirement, investing in real estate, or more.
Accounting firms also help other businesses. A company already aware of the client business’s financial standing is in the best position to help plan for long-term growth, implement a business plan, and more.
Financial planning for small businesses also involves staying up-to-date on any changes in business regulation. Accounting firms can recommend how you strategize and time your moves correctly to get the most significant financial reward.
Accountants can advise budding businesses, and many consultants have significant experience in multiple industries. Their knowledge and advice will be varied enough that you’ll feel confident in their approach no matter your business’s focus.
Your accounting firm will learn as much as possible about what you want from the market in the future. They will work to bring your venture to life and exist as your main point of call regarding financial concerns. Accountants can stay on hand to recognize opportunities during the startup process even before you do.
Financial health checks are another service accountants can perform here while supporting the planning to expand your work. They can help strategize growth decisions and ensure future investments are sound.
Bookkeeping is about managing the comings and goings of money in and out of your business. You hold tons of analyzable data by keeping a record book of accounts involving all your company’s financial transactions and monetary operations. Bookkeepers and accountants can gather this information to project cash flow forecasts and financial reports.
Accountants use data from bookkeeping to create and finesse your business plan. How will you take advantage of peak and off-peak seasons? Bookkeepers predict the answers through the cash flow data. Besides that, bookkeeping accountants can advise you on your accounting software to make it more streamlined in the future.
With employees coming and going, payroll can get complicated fast. Accountants are there to calculate and update the set amount of money every employee receives routinely. Remember that holidays and sicknesses affect payroll, so it’s an element of the business that you must constantly update.
Retirement is also a significant element of payroll management, especially given that not every employee will want to be enrolled or be eligible for your company’s retirement matching.
Payroll management must be a priority in how you conduct your business. Many laws regarding wages and labor are tricky for those who don’t know business law, and failure to adhere can be costly.
Financial Statement Preparation
Financial reviews and statements are common requests from business shareholders. Because you have to keep your shareholders happy, there’s a lot of pressure in sharing finances.
Accountants can work intimately with a business to prepare a financial review. With some finance reviews taking days to collate, it requires accuracy and timeliness.
Some lenders and investors require decisive, strategic decisions between the business and shareholders following the meeting. Accountants can also be present here to assist in the decision-making process.
Preparation entails issuing the income, cash flow, and equity statements to evaluate your current financial standing and condition.
Need Accounting Advice? Contact Us!
It’s easy to see how complex accounting can be by the number of skills and tasks required in the role. But ultimately, accounting firms exist to help you maximize profit, advise on your finances, and manage your money.
Record-keeping and financial health are best left to the professionals. Get in touch with MI Tax CPA to feel confident about your choices.