What is public accounting?

Public Accounting presents accounting services offered to clients from small or large companies. Common services include taxes, audit, general accounting and consulting services. Accounting companies can offer their clients other services based on their needs. Most accountants under the public accounting umbrella have a professional license, such as certification of Certified Public Accountant (CPA). It is a universal global license indicating that the accountant has passed a strict test to achieve this standard.

Tax services from the public accounting industry usually include the preparation of annual personal or corporate returns. The CPA spends abundant time in this area and remains a step from the current tax law. This often includes participation in seminars or other training to ensure that they offer the best possible services. Tax planning offered throughout the year allows tax -accounting assistance to companies to find ways to reduce their tax liabilities. Targeted tax plannedIt may also be necessary if the company takes a significant step or decision on its operations such as the division.

Auditing is perhaps the most famous public accounting service. Accounting companies will offer acceptance and test the client's accounting books for accuracy, validity and timeliness. Publicly held companies usually have to undergo audits to meet government reports for reporting. Audits include planning and field tests to determine the scope of the client audit. After the review, the company publishes an official opinion, which contains the opinion of the auditor on the financial reporting of the company.

General accounting services offered by public accounting companies are basically allowing outsourcing its financial reporting. The client will pay for professional accountants to maintain their main book and prepare a financial statement. The client simply submits all financial information to the accounting company and allows the accountants toprepare. These services work well for small companies or those that are unable to spend a reasonable amount of time to complete the accounting processes.

Advisory services are usually extensive in public accounting. Professional accountants can consult a number of questions with clients, from taxes and mergers to purchases and general accounting and even employee benefits. Under current laws and standards, accounting companies are often unable to offer consulting services to the client in addition to auditing or general accounting services. This smells the boundary between segregation of duty. A company that offers specific tax consultancy may not be able to prepare accounting information because it is completing too many services for its client.