Everyone in business knows the importance of cash flow. Without a flow of cash, your business goes into financial stress, no matter how asset rich it may be. Accountants and accounting firms have been a major part of Business success since 1887 when 31 accountants in the USA joined together to form the American Association of public accountants.
Although accounting in its raw form existed far earlier than this, this year saw the first official group formed. It would be almost another 10 years before the first CPA’s would be credited.
The role of an accountant is broad in its complexities, yet simple in its mission. Their role is to ensure that the business and its Manager know what cash and stock are coming into the business and going out of the business, hence understanding their cash flow and providing a platform from which to mitigating financial risk to the Business.
Many businesses through the years have hired full-time accountants to look into this day by day, but more and more business owners have discovered that by utilizing a qualified small business consulting firm, they can actually save on costs and gain on experience. When a company hires their own accountant, they are restricted to the skill set of the particular person they’ve hired. Whereas when you look at accounting services outside of your business, you are only paying or the service provided and also getting the benefit of multiple sets of eyes.
Types of accounting:
There are 6 main types of accounting to consider. These include management accounting, financial accounting, auditing, tax accounting, fund accounting and forensic accounting.
Some of the main differences with each accounting practice are who the end result is aimed at. For instance Management accounting is the need to evaluate the business and develop future strategies for growth. The reports produced are built on individual Manager targets and departments and are for internal use. On the flip side, financial accounting is produced to provide financial information to external shareholders and investors so they can make informed decisions about their investments.
Auditing and tax accounting are usually done by eternal firms and need to abide by the rules and regulations of the country the business resides in. This type of accounting is for government bodies and reporting a businesses profit and loss to the department of revenue.
Fund accounting is used for non-profit entities and forensic accounting is required in court cases where evidence of transaction is required.
How do you comply?
To ensure your business makes the most of every dollar you’re best to find an accounting company that knows the rules and regulations in your area. JCorp has a strong and varied product base covering all accounting services in Dubai. Located conveniently in Media City Dubai, we have all your accounting needs covered.