Should you use an accounting service for your corporate financial statements? This question must be considered by those in leadership positions in the corporate world. Corporate financial statements cannot be constructed haphazardly or without a thorough understanding of how it should be done. Therefore, it may be helpful to know the 4 benefits of using an accounting service for corporate financial statements.
1- Knowledge of GAAP
Surely one of the most important reasons to consider is that of GAAP. GAAP is an acronym for Generally Accepted Accounting Principles. Every publicly held company is governed by these principles. The Financial Accounting Standards Board (FASB) has delegated authority for designing and implementing GAAP.
The reason for this is that the Securities and Exchange Commission requires that publicly held companies follow a set of consistent standards so that creditors and investors can properly interpret financial statements in order to make decisions on whether they want to invest in a company or not.
If these rules are not followed, there are strict penalties, such as financial consequences, the relinquishment of corporate status, the demise of a business, or even jail or prison time for negligence or fraud.
2- Expertise
This brings us to our next point. An accounting service will come equipped with the expertise to get things done correctly. Everyone has his own role to play in the success of a business. Nobody can do it all or acquire enough knowledge to perform all the needed tasks. This is especially true as things get more complex – which they do when considering corporate accounting.
When working with an accounting service, you may also be able to get assistance with internal audits of the information presented in the financial statements. Such an investment will help to bring accountability to the organization and ensure reliability.
3- Cost
Obviously, there is an option to invest in an accounting service or to employ an accountant/accounting team. Thus, it is important to discuss the advantages of contracting with an accounting service in particular.
An accountant is essential to have within a corporate organization. There is no way around this fact, as the rules are very strict. However, seeking the help of an accounting service can be more beneficial than hiring an accountant for many reasons.
First, anaccounting service can help you save money. Hiring an accountant for full-time or even part-time work can be very costly. It is often more cost-efficient to hire a contracted accountant through an accounting service. You can usually get a quote or see their fixed prices online.
Second, when contracting with an accounting service, you will be able to work with someone who is typically very motivated to do a good job because their business is on the line.
4- Informed Decisions
Corporate financial statements are not just for creditors and investors. They are also for managers and decision-makers within a corporate entity. As a result, they need to be timely, reliable, and relevant to the decisions at hand. Hiring an accounting service can help ensure that decisions are being made based on timely, reliable, and relevant information.