Types of Accounting Practices


Business owners often lack the education and experience to handle all of their business accounting needs. Hiring an accounting practice to assist with the accounting functions of the business is a great way to ensure the books are in line with ethical standards and the law. A quick look at the Yellow Pages yields a lot of options, so it's important to know what each service provides to select the one that is best suited for your accounting needs.

Tax Preparation Practice

  • A tax preparation practice specializes in preparing individual, partnership and corporate income tax returns. In this type of practice, tax returns are generally assigned to accountants by their specific area of specialization. In legitimate practices, all tax returns are prepared or reviewed by a certified public accountant. Most tax practices use tax filing software to prepare and submit returns.

Auditing Service

  • Auditing services focus primarily on reviewing the financial statements and supporting documents for companies to issue an opinion as to whether or not the accounting was prepared in line with generally accepted accounting principles (GAAP). Many mid-size and most large corporations hire an independent auditing service annually to conduct a review of their books. Publicly held corporations are required to use an external auditing service.

Bookkeeping Service

  • Bookkeeping is the term used to describe everyday accounting such as processing accounts payable and accounts receivable, making bank deposits, processing payroll and preparing month-end financial statements. Small companies represent the largest customer base for a bookkeeping service since many small companies don't have the budget to hire an accountant and neither the existing staff nor the owner understands accounting.

Software Conversion

  • More companies are realizing the benefits of specialized accounting software, specifically management information systems, but many companies do not have personnel with the education or knowledge needed to perform a complicated software setup or conversion. For these companies, hiring a software conversion specialist is a great way to gain confidence that the conversion will roll out according to the designated timeline, and that the converted data will be correct.

Forensic Accounting

  • Forensic accounting is a special type of auditing that is most often discussed in the legal arena. The word "forensic" implies an ability to use the information in legal actions, and that is the case. While auditors take information from financial statements and work backward down the paper trail, forensic accountants tend to focus on specific areas of a business that they know from experience to be problematic. Forensic accountants are usually looking for fraud, money laundering and other illegal activities. Another difference between auditing and forensic accounting is that auditors issue an opinion only on the correctness of the accounting data. Forensic accountants can issue opinions on the investment worthiness of a business.

Related Searches


Promoted By Zergnet


You May Also Like

  • Five Types of Medical Practice

    In contrast to the traditional practice settings available to physicians in years past, today’s med school graduates have many more options. Among...

  • The Difference Between a Sponsorship & a Partnership

    In business, a sponsorship exists when one entity provides financial support to another to achieve promotional advantages. When a business gives funds...

  • Accounting Practices & Procedures

    Accounting practices and procedures guide accounting flows through an organization. These flows include paying bills, receiving money and creating financial reports for...

  • Types of Accounting Books

    Corporate accounting books are critical in modern economies because they help companies record and report financial transactions in accordance with U.S. Generally...

  • Types of Accounting Policies

    Accounting policies are the backbone of a company's financial accounting and reporting processes. Senior corporate leaders ensure these policies conform to industry...

  • Standard Accounting Procedures

    Accounting is a complex discipline and practice, spanning academia and business, and standard accounting procedures vary by industry and even by accepted...

  • Types of Audit Opinion Letters

    When an independent auditor completes an audit of a company, he expresses his opinion of the financial statements in a formal letter...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!