A business firm can function without a dedicated accounting department only for a very limited time. The main functions of accounting are systematically recording transactions, sorting and analyzing them, preparing financial statements, assessing the company’s financial position, and aiding in decision-making with financial data and information.
What Is the Function of Accounting Service?
Accountants maintain a fiscal history of a company’s transactions, documenting and storing them in digital systems. They also help in interpreting and analyzing these records to identify discrepancies in cpa scottsdale. Accounting also includes making projections based on past data and forecasting future business growth.
Small businesses are often hesitant to outsource their accounting needs, but they are well advised to choose a service that is experienced and reputable. They should be willing to meet with clients in person, as opposed to offering remote services only. For example, Marcus Accounting offers evening and Saturday appointments.
Another important role of accounting is to reduce fraud by maintaining a cash book scientifically. This is a record of daily cash receipts, payments, and the amount in hand and at the bank. It also keeps a check on money mismanagement or wastage by employees.
A large part of an accounting function is preparing the company’s budget for the current year, based on data and predictions. It may be a general budget for the whole company or department-wise. It is also a responsibility of the accounting department to prepare treasury policies and set up treasury management processes. It may include deciding on investment opportunities, optimizing usage of credit facilities and reduction of financing costs.