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Opening up a business can be incredibly exciting. Picking out logos, colors, and marketing materials are all parts of the process that business-owners typically enjoy. Unfortunately, however, starting up a company isn't always that fun. One of the most important aspects of any business venture is taking care of your money. A lot of individuals don't feel comfortable doing that themselves, so they often hand the job over to accounting firms. This allows the owners to handle the day to day running of their company while the accounting firms handle important financial tasks. Choosing the right firm is something important to think about, however, as you must take into consideration the accounting needs of your business. Read on to learn more about some of the different types. Public Accounting These firms usually employ CPAs, or Certified Public Accountants. These individuals work in the areas of tax, audit, and management consulting. The four largest and major companies in this industry are known as the Big Four. It consists of Ernst and Young, PricewaterhouseCoopers, Deloitte Touche Tohmatsu, and KPMG. If your company is private, you would be interested in hiring one of these organizations to complete the tasks required by the SEC (Securities and Exchange Commission). Regional and local companies can handle auditing and other tasks for regional and local clients. Tax Accounting These firms focus on tax preparation and planning for companies of all sizes. They also can help individuals. Again, CPAs make up the bulk of the workforce. It is very important that these CPAs keep up with current tax laws as established by the Internal Revenue Code, which differ from Generally Accepted Accounting Principles. Many employees at these organizations are required to regularly take continuing education courses to stay up to date on changing tax laws, software programs, and planning strategies. These businesses are especially busy during tax season, with employees putting in very long hours. Forensic Accounting This has nothing to do with spending time in a lab with samples of DNA. Instead, this type of firm uses accounting skills and legal policies to uncover fraudulent and illegal activities. Both public and private companies can hire these businesses to investigate financial records. Often, employees work with local and federal law enforcement. When legal action is taken against individuals involved in corporate fraud, courts often call upon forensic accountants to testify as expert witnesses. Examples include cases involving embezzlement, identity theft, money laundering, and stock price manipulation. Bookkeeping This is probably what most people are familiar with, as bookkeepers typically work with small and medium sized companies. No certifications are required for bookkeepers, although many get them. Services offered include accounts receivable, accounts payable, bank reconciliation, credit sales reconciliation, financial statement preparation, and preparation of write ups. Bookkeepers may also help with payroll, tax preparation, and loan package preparation. Although it would take a lot more research to consider yourself an expert on accounting firms, at least now you know more than you did before! Just remember how important your hard-earned money is and why it is smart to invest in caring for it. When looking for Bay Area accounting firms, residents visit SD Mayer & Associates, LLP. Learn more http://www.sdmayer.com/services/accounting/.
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