What are the types of Accounting Firms?

Every business has a department to handle all their financial activities which is known as an Accounts department. Companies have to follow some protocols those are prescribed by the Securities and Exchange Commission (SEC) and following GAAP - Generally Accept Accounting Principles. According to SEC, all the public companies have to hire an external accounting firms to audit all their financial statements. Accounting Firms are specialised in handling all types of financial data and activities such as tax handling, acquisitions and mergers and forensic accounting. The type of accounting firms depends upon the work and nature of their business services. There are wide variety of accounting firms like – public accounting, tax accounting, forensic accounting and many more.

Variety of Accounting –

The types of financial accounting, are explained in the below article –

Public Accounting - Typically, Public accounting firms are hiring CPA that is, Certified Public Accountants. They are expert in auditing, tax consultation, and many more. Public companies hire these type of accountants to manage their task, required by the SEC. Both, local and regional accounting firms are capable to handle auditing and other related accounting tasks for their clients.

Tax Accounting -  Tax accounting firms are fully focussed on tax preparation and planning for firms of all sizes, and for individuals. Tax accounting firms normally hire CPA. Upcoming tax accountants must keep up with current laws of tax. Most of the accounting firms require their respective employees to keep updated with the latest trend and changes. During tax season, these accounting firms work all day and night to provide ease to their clients.

Forensic Accounting - Forensic accounting firms are basically, uncover all illegal and fraudulent activities related to accounting. When an agency or employer takes legal action against any company or individual involved in any type of corporate fraud, at that time court will call upon forensic accountants to verify the truth. In that kind of scenario, forensic accountants may need to present all the collected evidence related to the case.

Accounting & Bookkeeping – In this list, the last but not least, name is Accounting and bookkeeping. They complete all the fundamental accounting tasks for their client. For bookkeeping, person must have strong fundamental knowledge about their work. These type of firms are usually small or medium-sized companies with a few employees. Services provided by bookkeeping firms include accounts payable, accounts receivable, credit sales reconciliation, bank reconciliation, financial statement preparation and many other related work. They are also provides you some additional services like small business tax preparation, payroll, and loan subscriptions. These type of firms may handle clients' all accounting and related tasks.

In the above we can find that there are multiple number of accounting and each & most commonly used type of accounting. Bookkeeping is the essence of every business. CharterCPA Inc. is the renowned accounting outsourcing company situated in New York (US) 11021. They have accounting & bookkeeping services, VirtualCFO, Taxation (Business & Individual), Controller services and many other outsourcing services.

To learn more about Outsourcing your Accounting function, schedule a call with us today!