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Outsourcing Accounting Services and their objectives

The term Accounting deals with the maintaining the comprehensive financial transaction records and analyzing the results of economic activities of a firm. The company’s operation results are summarized by the financial statement which is nothing but the accounting services.

The purpose of Accounting
The purpose of accounting services deals with proper reporting of financial performance of a company which includes decision making, control assets, performance, income statements, cash flow, retained earnings, balance sheet and on and on.

The purpose of Accounting
a) Proffers systematic recordings of a firm
b) Well developed future strategy
c) Record, report and analyze the financial status
Objectives of Accounting
a) To analyze the transaction and financial status
b) To measure the profitability as well as loss percentage
c) To access the Income Tax of an organization
d) To ensure the control of management

Different methods in Accountings

Accounting methods are based on the revenue and expenses of the company. Under these reports of accounting methods, businesses found out its desirable financial accounts. Mostly, small business owners choose any of these accounting methods. But, the accounting criteria are large for some enterprise they definitely g with the accrual accounting without any option.

Cash Accounting – Here the report is prepared according to the real-time cash flow before the transaction process.
Accrual Accounting – In this method of accounting the report is prepared after the transaction is done.

What are all the types under the accounting services?

Financial Accounting
Financial Accounts lies in the financial report of the organization that includes the detailed summary of accounting framework that includes the details of investors, suppliers, regulators. A statement of financial accounts is prepared on the past performance and present position. The statement should accept the guidelines of GAAP or IFRS. Generally, Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) are raised from the accounting theory to meet the business needs. The current financial statement of a firm is prepared on analyzing the past-oriented reports.

Management Accounting
Management accounts focus on the internal operation reports like cost accounting, target costing that controls the external use of organization results in attaining the aims, goals and intention of the organization. Here, the future reports of the financial statement were predicted from the present condition of the company. Global Management Accounting Principles (GMAPs) are invented to proclaim the best discipline. Cost accounting is the one of the Management accounting services which deal with the cost control of an organization.

Governmental Accounting
Governmental accounting is also referred as public accountings, federal accountings. From the name itself, it is clear that the financial statement is based on the public sector, which is somewhat different from the private sector. The financial statement and the performance of the public sector, as well as government entities, are taken into account.

Tax Accounting
As the name implies, the Tax Accounting concerned with the Tax related matters such as tax filing, tax planning, tax regulation. When a proper Tax accounting is maintained for an organization will reduce the future tax burden. The rules and discipline for Tax Accounting differ from the GAAP, GMAPs, and IFRS.

Forensic Accounting
It is suited to the crime, investigation field where the finance and accounting could be a perfect fit. Forensic accountant includes insurance claims, personal injury claims, suspected fraud and claims of professional negligence in a financial matter, money laundering, embezzlement and tracking the flow of money to illegal organizations.

Project Accounting
Project Accounting plays a massive role in the project management, which deals with the project-oriented business, gain or loss from the project and from the product launch.

Social Accounting
The Social Accounting report describes an organization’s activities on the social environment. So it is also named as Environmental Accountings. It will create an environmental awareness and consciousness among the public.

Bookkeeping Services and their usage in Modern Industry 2015

Keeping account books about company transaction is simply named as Bookkeeping. The day to day business performance updates on a regular basis based on the accounting principle. Bookkeeping or record keeping is the most significant service that every enterprise should need.

Similarities
a) Both Bookkeeping and Accountings belonging to the same profession and deals the financial data and activity.

b) These two activities are an essential function for both the well-developed companies as well as for the start up level organizations.

c) There is no need for previous knowledge about these services because the software designed for these services will handle the task.

Differences
a) Bookkeeping records the financial transaction of a company where else the Accounting analyzes the financial transaction of a company.

b) The one who performs the Bookkeeping task is called a Bookkeeper and who handles the accounting tasks is known as Accountant.

c) The outcome of the Bookkeeping service is used by the accountant and the outcome of the accounting service is used for internal & external users.


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