What Are the Three Types of Small Business Accounting Services?

Many small businesses today outsource their accounting functions to access professional skills and experience for an affordable fee. There are three types of small business accounting services, and they cover most of the crucial necessities.

Categories of Accounting Services

Bookkeeping: Bookkeeping refers to an individual categorizing and reconciling business and financial transactions. These could include credit card transactions, invoices, or others. The primary role of a bookkeeper is to give accurate financial information on time and monitor financial transactions.

Strategic Finance

Have you heard of controllership and CFO? They are part of strategic finance. Controllership is tracking and managing accounting processes, including improving them, building or managing forecasts, financial reporting and review meetings, and recommending effective strategies for improvement.

On the other hand, CFO services look at the bigger picture, focusing mainly on fundraising, hiring, product development, tech stack management, and development of the financial team, among others.

Tax Accounting

It has two main functions: strategy and compliance. The role of a tax accountant is to ensure a business complies with local, state, and federal tax laws. A tax accountant’s other role is to give strategic advice, like how to supercharge your money within the taxes.

What is the Most Common Type of Accountant?

A bookkeeper is the most common accountant type in small business accounting services. You may also know them as staff accountants. They are the most common because they need less training but can do most of the transaction categorizing, making them highly valuable for both large and small businesses.

What Are the 3 Main Types of Accounting?

Tax, financial, and cost accounting. Tax accounting involves preparing and filing taxes for compliance with federal, state, and local regulations. It also leverages tax breaks and regulations to benefit the financial condition of the business legally.

Financial accounting involves bookkeeping and strategic finance, leveraging transaction records, predictive analysis, and real-time metrics to help make better business decisions.

You may call cost accounting managerial accounting. It involves understanding the business’ cost incurred to produce a product and the profit it earns to sell it. You will usually see cost accounting in inventory and production industries, such as food processing, textiles, and manufacturing.

Conclusion:

Looking for reliable accounting services for small businesses? Determine what you need by consulting a professional accounting agency. They will suggest what you need and provide the services required to make your business soar.

Related Article: Do You Need Professional Business Accounting Services For Handling Tax?