Businesses employ accounting firm to deal with important financial tasks. Public organizations must follow accounting rules set by the Securities and Exchange Commission (SEC) and following Generally Accepted Accounting Principles (GAAP). The kinds of accounting firms required by a business depend on their accounting and business needs.
Public Accounting
Public accounting firms commonly employs Certified Public Accountants (CPAs) that work in the zones of audit, tax and management consulting. Four firms, called the Big Four, are the biggest companies in the public accounting industry. Public organizations hire these and other firms to complete accounting tasks required by the SEC. Regional and local accounting firm handle auditing and other accounting tasks for regional and local customers.
Tax Accounting
Tax accounting firms focuses on tax preparation and planning for organizations of all sizes, and also for individuals. Tax accounting firm usually hires CPAs. Tax accountants must stay aware of current tax laws. The Internal Revenue Code builds up tax laws for individuals and businesses.
Forensic Accounting
Forensic accounting firm uses accounting skills and legal policies to reveal fraudulent and criminal activities. Public and private companies hire forensic accounting firm to explore monetary records. At times forensic accountants work with local and federal law implementation.
Bookkeeping
Bookkeeping firms total fundamental accounting tasks for small and medium-sized organizations. No certification is required for bookkeepers, although they may look for certifications. Bookkeeping firms are typically small companies with only a few employees. Services gave by bookkeeping firms include credit sales reconciliation, accounts payable, bank reconciliation, accounts receivable, financial statement preparation and preparation of accounting write-ups.
