A variety of services are being provided by accounting firms. The scope of services provided by accounting firms varies according to their knowledge, skills, and experience. Some common services are final account preparation, external audit, tax services, management advisory services, and accounting system design.
The external audit is one of the primary services provided by accounting in China firms. It primarily focuses on a critical examination of financial statements by an independent CPA (Certified Public Accountant) for the purpose of expressing opinions on the fairness of the content of financial statements. Instead, the CPA statistically reviews the sample of records. Then, the CPA prepares an audit report. This report is essentially a formal opinion or disclaimer, issued as a result of an audit or evaluation provided by the auditor. However, it should note that this does not include all the accounting records assessed.
Independence must maintain by the auditor. Therefore, his client should not be an employee of the company. It is very important for an external auditor to know the various provisions regarding the independence of an auditor. Otherwise, the audit opinion will be questioned.
Also, accounting firms operate various tax services. Accountants prepare clients’ income tax returns (ITRs), business and transfer taxes. In this setup, the accountant represents the client in tax assessment and investigation. It requires that tax accountants constantly influence their clients with dynamic tax laws, BIR regulations, and local tax laws so that tax accountants can give proper advice on tax reduction. Also, knowledge about tax provisions serves as a guide for tax accountants to prepare income tax returns of their clients and other information is submitted to the concerned office like the Bureau of Internal Revenue.
Managing Advisor Services:
Similarly, an accounting firm may also provide managerial advisory services. Management Advisory Services assists management in providing assistance. Typically, accountants provide industry advice to their clients about finances, budgets, business policies, and organization methods, systems, product costs, distribution, and other business activities.
Budgeting involves efficient management of cash by predicting or predicting future financial goals. Periodically, the accountant reviews the actual flow of cash that it should have. Differences are carefully analyzed to determine possible causes, whether it is a favorable or unfavorable scenario and how it can control. Why this kind of analysis does is to improve the accuracy of estimates and narrow the gap between budgeted and actual performance.
Accounting system design:
An accounting firm can also provide accounting system design services. This includes an assessment of the company’s control system to find out areas for improvement. An accountant who works as a system analyst designs the accounting form and installs the accounting methods for collecting the accounting data. This may include setting up a customized computerized accounting system for the client’s firm.