Things to take care of when availing Accounting Services!
Accounting is a business term, which measures and processes the results and financial information of an organization’s economic activities. Accounting or financial reporting is the most primary part of an organization. The measurement and processing of an organization’s financial information should be well-organized, error free and timely. Accounting is critical for efficiency of an organization, and fault or delay in any financial information can be very problematic for a company or an organization. Due to this reason, almost all organization has their accounts handled by accounting firms offering high-end accounting services.
Deciding to employ an accounting firm can be very profitable for a company. These firms provide comprehensive accounting services. Some of the accounting services provided by these firms are; General ledger & financial statement preparation, Bookkeeping, Accounting system setup for new businesses, Personal financial statements, Litigation support and many more. Preparing a general-purpose financial statement is the most critical and final step in accounting cycle. It basically represents, why we need financial accounting. It includes; preparation of a balance sheet, income statement, retained earnings statement and finally statement of cash flow.
The preparation of a financial statement can be simple or complex, depending upon the size of the organization. A financial statement is prepared using information from the ledger account and follows a certain order. There is a logical and sequential order in which the statement is prepared, the order is as follows:
• Preparation of Income statement
• Statement Preparation of retained earnings
• Preparation of cash flow statement
• Preparation of Balance sheet