Services provided by accounting firms
Accounting firms offer many different types of services. The range of services offered by accounting firms varies according to their knowledge, expertise and experience. Common services include preparation of final accounts, external audits, tax services, management consulting, and accounting system design.
External Audit Services In Dubai is one of the main services provided by accounting firms. It mainly involves a critical review of the financial statements by an independent chartered accountant to provide an opinion on the reliability of the contents of the financial statements. The CPA does not statistically check the contents of the accounts, but examines a sample of the accounts.
He then prepares an audit report. This audit report issued primarily as a formal opinion or a disclaimer of opinion following the auditor’s review or evaluation. It should be noted, however, that this report does not include all the accounting records that are the subject of the evaluation.
Auditors must maintain their independence. Consequently, the auditor should not be an employee of the client entity. It is very important that the external auditor is aware of the various rules on auditor independence. If not, the auditor’s report will be questionable.
Accountants also deal with various tax services. Accountants prepare income tax returns (ITA), business tax and transfer tax returns of clients. The accountant then represents the client in tax audits and assessments.
Tax accountants must be constantly aware of dynamic tax laws affecting their clients, BIR provisions and local tax laws so that they can provide appropriate advice to minimize taxes. Knowledge of tax laws is also useful for tax advisors in preparing their clients’ tax returns and other information that must be provided to the appropriate authorities, such as the IRS.
Management consulting services
Similarly, accounting firms can provide management consulting services. Management advisory services help assist management. Typically, accountants provide their clients with advice on finances, budgeting, business policies and organizational procedures, systems, product costs, distribution, and other business activities.
Budgeting involves the effective management of cash through projections of future cash objectives. Periodically, accountants review actual cash flows compared to what they should be. The differences arethen carefully analyzed by management to determine possible causes, favorable or unfavorable scenarios, and ways to manage them. The rationale for this analysis is to improve the accuracy of forecasts and reduce the difference between budget and actual results.
Design of accounting systems
Accounting firms may also offer accounting system design services. This involves evaluating the company’s control system to identify areas for improvement. Accountants who work as systems analysts also design accounting forms and install accounting procedures for storing accounting data. It also includes creating a customized computerized accounting system for the client’s business.