Among the key functional areas of business management, financial accounting operations are the most critical and complex. Financial management is both time-consuming and resource-intensive. Therefore, business owners delegate these tasks to professional accounting services to primarily focus on business development.
There are several logical and practically viable reasons for outsourcing the accounting and financial management of a business. Nowadays, a majority of corporations, irrespective of size, offload the financial responsibilities to accountancy professionals. It is a proven fact that outsourcing will play a significant role in business growth.
Why Do Businesses Need Professional Accounting Services?
Accounting, as we know, has come out to be a highly specialized subject. Furthermore, the increased governmental regulations and tax laws have made financial accounting extremely important. To thrive in the business world, one must manage their financial operations per the law of the land.
The critical aspects of financial management make it a risky choice for key stakeholders to work it out themselves. Thus, they have to rely on the competency of a professional accounting services provider. With the handing over of accounting operations, business holders can divert their attention to other important tasks such as planning to grow the customer base.
Thus, it is highly preferable and desirable to opt for outsourced accounting and bookkeeping services so that more time can be spent on productive growth processes.
What Are The Components Of Professional Accounting Services?
Accounting is a broad subject with a bundle of different services involved. Given so much diversity, it becomes a hard nut to crack unless you have the support of professional financial experts. Before getting started to work with an accountancy firm, it is pertinent to have a good idea of the scope of services and how your business can benefit from them.
Bookkeeping – Professional Accounting Services
Bookkeeping is at the core of the accounting function. It is a mandatory part of many professional accounting services due to its sheer importance in maintaining accurate financial records for audits. Bookkeeping is a dynamic process of keeping a track record of financial transactions. The influx of financial operations can quickly pile up the bookkeeping tasks.
Hence, it is in the best interest of business owners to keep their books up-to-date to make informed decisions. Without a comprehensive record of financial transactions, it is impossible to chalk out any future plans.
If organizations choose to manage the bookkeeping operations themselves, it is a sequential process that must be followed dutifully. However, keeping up with this process will have a damning impact on the other operations. In such a scenario, it becomes advantageous to outsource bookkeeping.
Financial Analysis and Consultancy
The financial health of an organization is measured through a series of parameters that form the basis of financial analysis. Finance is all about numbers, and comprehending these numbers decisively will shape the future policies of the organization. So, financial analysis is indeed a roadmap for success.
Financial consultancy is a part and parcel of professional accounting services. Accountants and financial experts dig deep into the financial records of organizations to provide valuable insights into the decision-making process. They are at the top of the number game and can forecast the financial future based on past trends.
The income statement, balance sheet, and cash flow statement are the three primary components of financial analysis. These statements are a benchmark for analyzing the financial position of an organization and to plan the future activities accordingly.
Internal Audit
Scrutinizing the financial processes of an organization also forms a crucial part of accounting services. Ever since the enactment of the Sarbanes-Oxley Act in 2002, internal auditing has become significantly more relevant. Under the provisions of this act, the business will be penalized if there are errors or fraudulent practices in financial reporting.
Internal audit is very critical and must be in line with the regulations put in place by the SOX Act. The financial reporting (transactions) is vetted in the internal auditing process. Any error or discrepancy in reporting the finances of an organization can have serious consequences. Therefore, it is a more certain approach to rely on finance professionals who can carry out the internal auditing without any issues.
Tax Accounting – Professional Accounting Services
Taxes are a nightmare for business owners as any delay or miscalculation in filing the tax returns will warrant legal action from the IRS. The wider scope of the IRS tax net makes compliance complex. Therefore, tax experts are required for assistance to avoid any catastrophic failure.
Tax accountants are qualified to determine the tax obligations of an organization and mitigate tax liability. Having a tax expert by your side will prove to be highly beneficial in countering the regulations of the IRS through a robust compliance assurance mechanism.
Financial Controller Services
Among the professional accounting services, financial controllers have an important role in ensuring the stability of operations. According to a survey by Bloomberg BNA, more than 27% of mistakes in accounting processes are due to human error. Financial controllers are tasked with reviewing all the activities of the finance department.
Without having a dedicated financial controller, it is likely your organization will bear the brunt of internal risks.
The Bottom Line
Whether you are a new startup, a small business, or a mega corp, you will have to leverage the expertise of professional accounting services. Financial matters are critical to the success of a business and are necessary to map out future plans.
Be smart, get outsourced accounting services!
If you’re looking for a great partner for your financial accounting needs, Nuage Digital is the perfect choice for you. Our financial experts have been serving the community for over a decade, providing the best professional accounting services to clients of every size, from local businesses to large corporations. If you’d like to see just what makes us special, contact us here and we’ll get started on your project right away.
