What are accounting services and what are their types?

Good and rational management is one of the pillars of business success, as it ensures control over various human and material resources. From here emerges the importance of accounting as it is based on a set of services that contribute to managing the financial affairs of companies and entrepreneurs, allowing them to weave clear relationships with partners and administrative institutions, as well as organizing financial data. In this article, we try to define accounting services and their importance, then we will mention the most prominent types.

Accounting services concept

Accounting services are of paramount importance to both small and large businesses, and can be defined as the various processes associated with managing corporate finances. It can also be described as all the processes of writing and arithmetic aimed at controlling resources, wages, taxes, and expenses.

Based on accounting services, companies can obtain periodic reports that contain valuable data about their financial and administrative status. Accounting is a summary and analysis of the company's transactions that regulate its relationship with tax and government entities, and even with partners.

Accountant duties and roles

Whatever the size of your business activity, it needs accounting services, as they are necessary for start-ups as well as pioneers. Accounting may be managed by a person whose specialty is this, and he is called an accountant. As for large companies, they employ a full team of accountants at all levels, including dozens of employees who supervise the preparation of the necessary reports. These services can be obtained online through freelance websites such as Khamsat, the largest Arab market for buying and selling mini-services, in which you find a variety of accounting services such as: making accounting entries, preparing budgets and financial statements, in addition to simplifying accounting materials for students. The accountant works on a variety of tasks of great importance, including:

Accurately storing the company's data and ensuring that it is preserved with the help of special computer programs.

Ensuring compliance with the laws regulating the work of companies and expressing opinion in the event of violations.

Preparing various monthly and annual reports.

Checking the various records and ensuring the integrity of financial documents such as checks and payment statements.

Preparing tax returns and submitting them to government agencies in order to extract their value.

Monitor spending and budgets, in addition to analyzing financial performance and risk analysis.

Advise on how to reduce costs and increase profits.

The importance of accounting services

As we mentioned earlier, accounting services aim to record the various transactions of the company and monitor its financial flows, which helps in preparing various reports that are submitted to many parties. If we want to detail, we can say that the benefits of accounting services are many, including:

Assisting in recording and maintaining the company’s transactions in an orderly manner, with the intent of returning to it when necessary.

Keeping the business on the right track by monitoring financial flows and avoiding any future crises such as the company not having the necessary liquidity.

The company’s discharge of its financial liability towards the government tax authorities, as accounting services help determine the tax dues accurately.

Clarify the financial position of companies, which allows them to obtain the necessary resources, whether from banks or other partners.

Summarize the partial and individual transactions of companies and convert them into focused financial reports.

Helping companies manage risks and plan for future projects.

Types of Accounting Services

The types of accounting services vary according to the company’s needs and the size of its activity. The most important types of accounting services are:

1. Financial Accounting

Financial accounting contributes to collecting and providing the company’s financial statements during specific months or annually, as it is the product of the process of compiling and analyzing all financial transactions, whether it comes to income or payments (expenses).

The importance of this type of accounting appears in that it shows the accurate picture of the company's general financial position, as it can be invested in financial audits, as well as in obtaining new partnerships or loans from banking institutions.

2. Managerial accounting

This type provides information that is useful in making management decisions related to the business of the company. Despite its reliance on the same financial accounting statements, they are treated and used in a different way, to provide decision makers within the company with monthly or quarterly reports that help in taking appropriate measures such as raising salaries or laying off a number of workers.

3. Tax accounting

It is normal for companies to be obligated to pay various taxes imposed on them. However, thanks to the tax accountant, she can reduce her size, as he provides many tips and guidelines that help companies draw up less expensive tax returns. However, this does not mean seeking fraud or tax evasion.

4. Internal audit

Accountants in this type of operation monitor the way the business operates within the company or organization, i.e. check whether the company is operating under the law. This is in addition to ensuring that there are no manipulations, fraud or waste of funds within the company. In general, this audit is adopted in giant companies, where it is difficult to monitor all operations, as it may include the whole company or a sector of it.

5. Cost accounting

This accounting helps companies to make decisions regarding the appropriate cost of their products, taking into account all the expenses incurred in the production process, in addition to other costs such as wages, which helps in pricing the product accurately. This type can also contribute to making decisions to reduce the cost of production. Thus, the best prices are set, which enhances the company's competitiveness.

6. Criminal Accountability

This accounting seeks to carry out investigations into the presence of fraud or any form of fraud, with the aim of submitting reports and recommendations to judicial authorities in order to take appropriate judgments. He may resort to this type in the event of a dispute between two or more companies, and it may also be the result of court orders to complete some investigations.

Skills needed to work in accounting services

The field of accounting is one of the toughest fields of work, as it requires a degree in this field, in addition to the ability to deal with numbers and statistics on an ongoing basis. However, excellence in this specialty allows for the guarantee of significant profits, especially when it comes to owning and managing an accounting office.

Regarding the required academic level, a bachelor's degree in accounting is the minimum in order to practice this job. While some offices prefer to employ those with higher university degrees, such as a master's degree, there are other degrees in accounting outside of university programs. As for the skills that an accountant must have, they are mainly reflected in:

First: focus and scrutiny

The accountant deals with a huge amount of digital data, and this forces him to pay attention to everything small and large, as the lack of focus may lead to making fatal mistakes that have negative effects on employers.

Second: time management

It is not possible to carry out various accounting operations under time pressure. A good accountant is one who improves time management and control. As a result, he is able to give each work the time and attention that suits him, which contributes to achieving the best results.

Third: memorizing and remembering

Mathematical operations and accounting rules are the basis of the accountant’s work, for that it is required that everyone who has the desire to excel in this field should enjoy this faculty, without which it is difficult for him to perform his duty to the fullest.

Fourth: problem solving

The role of the accountant is not limited to preparing financial reports, but also to work on finding solutions to the problems that employers may face. These solutions may also be recommendations and suggestions for the benefit of companies to take appropriate action.

Fifth, good communication

The accountant is linked to a network of relationships, including the work team, companies and administrative bodies. This requires him to master good communication skills, such as listening to other people's opinions and accepting comments and criticisms.