Outsourcing accounting services to a third-party provider might seem like a good idea, but finding the right one is challenging. Some firms offer a broad range of services, while others specialize in specific accounting fields, like cash flow forecasting or tax planning. In this guide, we break down all the accounting services that are available so you can determine which service your business needs.
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Bookkeeping
First and foremost, accounting services involves bookkeeping. Bookkeeping is the process of recording and tracking all the monetary transactions that take place in a company during a specific time period. This will include banking transactions, invoices to your customers, invoices from your suppliers and other revenue and expense records.
Bookkeeping services are the most basic form of accounting, and it is absolutely crucial to the success of any company. Without proper bookkeeping, a Business Owner will have no way of knowing how much money is flowing in and out of its accounts.
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Payroll Processing
Payroll is the management of employee funds and retirement distributions. This is generally managed by the employee’s HR manager in conjunction with the payroll specialist. A typical payroll process includes issuing payslips, tax statements and employee superannuation statements.
The most important part of the Payroll function is to ensure that all employees are paid on time and paid the correct amount. Ensuring that the correct pay rates are used (as per an Award or Agreement) is vital – we’ve all seen the news articles about people being underpaid – don’t be the next one.
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Tax Preparation and Planning
Tax Preparation involves the calculation, preparation and submission of a tax return. While most tax preparation is done by a Qualified Accountant (and Registered Tax Agent), some businesses might elect to have a bookkeeper calculate and prepare their tax return. Unless the bookkeeper is a Registered Tax Agent, then they are prohibited by laws from even helping you prepare the Tax Return. This is a real danger.
Tax Planning involves the calculation of the least amount of tax legally payable by your business. Applying various strategies that are available to you and your business will ensure that you are not overpaying tax.
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Financial Accounting and Reporting
As a growing Business, financial accounting and reporting will be a key part of your business. This service helps you to understand the financial health of your company. We are always advocating that Business Owner MUST “Know your Numbers to Grow your Business”
Financial Accounting & Reporting brings together all the financial information that you have into a report that is easy to read. Making informed business decisions, or investment decisions cannot be made without these accurate reports.
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Cash Flow Forecasting
Cash flow forecasting deals with studying cash inflows and outflows to project the short-term and long-term financial state of a business. This is a lot more complicated than you might think since every business is different. This is also an essential service because it helps in making sure your business meets the financial goals that it has set out for itself.
This report will also highlight periods where you may have a need for additional cash to be injected into your business, or alternatively, knowing when you may have surplus cash to invest.
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Budgeting
Budgeting is one of the most important services you can have if you want to succeed. Proper budgeting will give you a clear idea of how much money you will have in your bank and whether or not you will be able to meet your financial goals. A good budgeting service will also help you determine how much money you will be spending on different aspects of your company, as well as your employees. This will give you a clear idea of your financial future.
At the end of the day, unless you measure something, you cannot manage it. If you have a realistic budget for your business, you can measure your Business’ performance against the budget and take appropriate action if the results vary or stray away from the budget.
Conclusion
All in all, when you’re looking for accounting services for business growth, you want to find the best accounting services that suit your business needs. Knowing what accounting services are available for your business will help you make the right decision when you’re looking to outsource your accounting services.
Whether you’re a startup or looking to expand your business, MKS Group is here to help you reach your goals. Whether you need tax planning, budgeting, payroll, or bookkeeping services, our team can do it all for you. Get in touch with us today to book a consultation with our accountants.
Remember – you must Know Your Numbers to Grow Your Business
And
You cannot Manage something that you do not or cannot Measure
