Accounting refers to the methodical and comprehensive recording of financial transactions related to any business. It covers activities such as basic bookkeeping, summarising and reporting of transactions to Government and tax agencies. Maintaining a flawless account has numerous advantages, such as evidences during court proceedings, settlement of taxation liabilities, selling of business, etc.
The four basic functions of bookkeeping services in Tampa are:
- Systematic recording of business transactions
- Complying with legal requirements
- Communicating the results to interested parties
- Protecting the business properties
Firms/Companies providing accounting services in Tampa take care of the following:
- Preparing financial statements with compilation reports
- Calculating net asset value, and administration, performance and management fees
- Preparing management reports
- Advising on taxation matters
- Providing on-site assistance and consultations
Accounting principles are basically the guidelines that are followed by companies during reporting of financial data. The common set of United States accounting principles is the Generally Accepted Accounting Principles (GAAP). These are an amalgamation of authoritative standards and the commonly accepted ways of recording and reporting accounting information. It improves the clarity of the communication of financial information.
While a bookkeeper handles the basic accounting functions, Certified Public Accountants (CPA) handle advanced accounting. Accounting and Tax services in Tampa have several sub fields or subject areas, such as financial accounting, management accounting, cost accounting, auditing, taxation and accounting information systems.
- Financial accounting: It reports an organisation’s financial information to external users of such information, such as current and potential investors, and creditors. It calculates and records business transactions and prepares financial statements for the external users.
- Management accounting: This branch focuses on measuring, analysing and reporting information that are helpful for managers in making crucial business-oriented decisions. The calculations are based on cost-benefit analysis, and do not usually follow the generally accepted accounting principles.