Accounting firms nowadays offer a whole range of services which in turn help the business owners to keep themselves organized, compliant with tax regulations, and poised for growth. Business owners should not view accounting firms as an outsourced bookkeeper; it should accord them the importance due to a business partner. Accounting companies in London are highly thought of, because of their inherent quality of work. Also it should be remembered that all accounting firms do not extend the same range of services, and that business owners should go through a few firms to make up their minds about the best suitable firm.
Planning and Preparation for Taxes
Accounting firms are responsible for the preparation of tax returns to the state, but there is a lot more to tax planning and preparation than just completing the returns. Accounting firms are tasked with the preparation of year-end documents as well. A business owner can also entrust an accounting firm with the required authority to represent the interests of the business owner in regard to notices, requests for information and audits from governing bodies. In addition to this, a business owner also has to establish a business entity that helps to create friendly tax scenarios. Accounting firms can assist in identification of the best solutions that help in the creation of these entities along with making the best possible tax scenario for the company in question. Some business owners will require estate planning and an accounting firm can help with this situation too. The firm is able to take in the big picture in proper perspective and develop the correct mixture of business entity and family trust establishments. Accounting firms can work in tandem with financial planners, estate planning attorneys, and also insurance agents in order to implement changes that will affect the business in the long term. Strategies for business transfers and mitigation of estate taxes are another key area of involvement.
Bookkeeping and Payroll
Even though they are skilled at providing the product or service in question, business owners cannot always be counted upon to be on top of the financial situation and intricacies that an established business is bound to find get caught up in. Copies of business bank accounts are used by accounting firms, whose bookkeepers work diligently to maintain an accurate cash flow record. Accounting firms are also experts in creating profit-loss statements that can break down the important areas of costing and the revenue inflows. Vendor payments and payroll processing, paperwork for independent contractors and on board employees are processed by accounting firms so that year-end documentation is done smoothly.
Valuation and Business Development
If the business in question requires financing, the financing firm will need to have access to audits and valuation reports. Accounting firms can help in this regard. If a private investor is going to loan an amount or fund the business, the resultant transaction has to be valued in all legitimacy. Potential mergers and purchases also require the help of accounting firms to ensure that everything is above board and carefully documented and analyzed.