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For the smooth running of his or her business, there are many types of accounting services that a small business owner can hire. One also has to have an idea about what the different accounting services are about so that they can choose the most important services for their firm. Discussed here below are some common types of accounting services that one needs to know about.

 

One such service is the bookkeeping service.  Bookkeeping is said to be the basis of accounting since in bookkeeping, one has to keep and maintain all the records of all the financial transactions that have taken place. It is a simple and cheap service that small companies often employ to keep their financial books in order as they can easily afford it.

 

Tax accounting is yet another important accounting service that business owners can benefit from. The way tax accountants do their job is mainly determined by the laws that are put In place regarding tax, both locally and nationally. The main purpose of tax accounting is to help the business find a way to minimize their tax as much as possible without infringing on any of the tax laws that have been put in place. This service will, therefore, require a very competent tax accountant who understands all the laws regarding tax to avoid landing the business in trouble with the law due to tax evasion.

 

Yet another important accounting service that will be of great help to any business is internal auditing. Internal auditing is a very important accounting service since it enables the business owners to detect any foul play in the preparation of the financial statement, if any. Many business owners, therefore, often employ this accounting service at the end of every financial year to determine the accuracy or reliability of the prepared financial statements. Through internal auditing, a business owner will also be able to save a lot of money that could have been lost through fraud or foul play. For more on the financial audit process, go here.

 

External auditing is another such service. Except for the fact that the info obtained is used by external parties such as investors, it is much like internal auditing. Since external auditing protects the investors from getting cheated out of their money through the use of bogus financial statements that do not portray the real financial situation of the company, it is also a very important service.

 

We can conclude that by knowing these different accounting services available, a business owner is able to choose the suitable services that are best suited to their companies. Check out bookkeeping services here.

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For more on private accounting, visit http://www.ehow.com/about_4571082_private-accounting.html.