Importance of Accounting Services Philippines
PUBLISHED: May 1, 2021
As the saying goes, accounting is the lifeblood of the business. This is indeed true because accountants and accounting are crucial parts in managing and keeping a business afloat. Without the dedication and hard work of accountants, businesses wouldn’t be able to succeed and reach great heights. Here the importance of Accounting Services Philippines:
Tracking – accountants are the master of tracking. They track and keep track of a company’s income and expense to tell whether or not the company is gaining or losing in the game.
Recording – aside from tracking, accountants record each transaction that the company makes in order to have a reference of the overall performance of a certain business.
Succeeding – without accountants, businesses wouldn’t simply reach its goals and succeed. Accountants are there to help them see and create sound decisions that will make or break a business.
With being said, here are the Types of Accounting Services Philippines:
- Bookkeeping – it is the type of accounting service that keeps records of the business’ financial accounts.
- Tax accounting – from the name itself, it concentrates on the income tax of individuals and other taxes that the business must comply.
- Chartered accounting – chartered accountants are specialized in several areas from auditing and management and is a part of a professional accounting body.
- Forensic accounting – these accountants are the one responsible with the tracking of missing funds and anomalies of the company and is most likely to work with law enforcement agents.
- Accounting audit – the auditors are the one in charge with validating and ensuring that all financial reports are true and accurate.
Accounting Services Philippines can be outsourced or in-house depending on the company’s needs. The advantage of having an outsource accounting service is that it will the company more time for focus on the business’ needs and leave all the accounting works to their selected accounting service provider. The service provider can also suggest the best accounting software that will work great on a specific type of business to make the process easier.
Depending on the provider a company chooses, Accounting Services Philippines will include the following:
I. Collection of Data and Documents – the company shall provide sensitive and important documents that will make up the accounting process from:
- Invoices and Receipts
- Bank and Billing Statements
- Payroll Register or List
- Other Documents deemed important to the business
II. Recording of Transactions – with the vital documents provided, the accountants can now keep track, record transactions and generate the following:
- Cash Receipt and Disbursement Book
- General Journal, Sales Journal, and Purchases Journal
- General Ledger and more
III. Generation of Financial Reports – this is not only done to see the financial condition of a company but is also provided to government agencies and business partners to show transparency. Reports are as follows:
- Statements of Financial Position
- Statements of Comprehensive Income
- Trial Balance
- Cash Flow Statement
Regardless of the business nature, accountants are important. They are as significant as the business itself. And whether or not a business will choose to outsource or employ accounting services Philippines, with the rapid change in technology and government policies, it is also a great idea to invest on accounting system to easily adapt to the changes and become future-proof.
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