A business that wants to prepare for business growth while staying tax-compliant and financially organised needs the services offered by an accountancy firm. While outsourcing an accountancy firm seems to be the name of the game today, making them an important part of the business is always good.
However, it should also be noted that not all types of accounting services are offered by an accountancy firm. It’s best that interviewing various accountancy firms ensures getting the specific accounting needs of a business.
Specialisation is also with accounting firms, making them offer niche services like tax filing and preparation. But, the most common services offered by accounting firms include business valuation, payroll, and bookkeeping services.
Business valuation and development
An accounting firm offering business valuation and development services is suitable for businesses that need to get audits or create valuation reports required by financing firms. This is especially crucial when a business is looking for further funding or a loan from a prospective investor.
A private investor is likely to get attracted when the transaction is accurately valued and legitimate. Potential business purchases and mergers also make business valuation reports a must. Hiring the services of an accountancy firm allows them to look at the revenues of previous years to come up with a growth and business pattern. The pattern helps potential buyers or investors determine the company’s value.
Pro forma financial projections and statements projected by an accounting firm help new businesses see their potential growth and development. Expanding the business or asking for initial funding also needs pro forma financial projections and statements.
Payroll and bookkeeping services
The backbone of every business is its great way of providing its services or products. Every astute business owner knows this. However, understanding the financial processes of managing a business is not always a great talent for many business owners.
The most innovative solution for this issue is to partner with an accounting firm. Cash flows of the business can be accurately determined by an accounting firm based on copes of the bank accounts. Other than determining the cash flow, profit and loss statements can be created by an accounting firm when they do a breakdown of business revenue and cost areas.
Outgoing monies from a business can also be helped by an accounting firm including payroll processing and vendor payments. Year-end payment documents can be done properly with help from an accounting firm especially those requiring federal paperwork for independent contractors and on-boarding employees.
Tax preparation and planning
Completing annual tax returns is always a stressful time for all types of businesses. Working with an accounting firm helps in preparing both federal and state corporate tax returns. Some year-end business tax documents handled by accounting firms include:
- 1099-Misc forms
- K-1 IRS owner
- W-2 employee forms
Tax audits, requests, and notices can be sent directly to accounting firms should a business owner grant them authority to represent their interests. Favourable tax scenarios and solutions can also be identified and created by an accounting firm to enable a business to get the most sensible tax sense.
An accounting firm also provides the best kind of help for business owners involving estate planning.
A business needs all the help it can get to achieve its financial goals. Contact us at CT Harris Rockhampton to know more about us.