What Is Public Accounting and What Are the Benefits?

Accounting, as a profession, goes back almost as far as words and numbers. As soon as people figured out how to count and write, they began taking accurate records of their finances and how that money moved throughout their kingdoms. Civilisation has come a long way since the Mesopotamians but the need for accounting services remains prevalent. Now more than ever before, accounting has been an important public service.

What exactly is public accounting and what are its benefits to you? As a client, using public accounting firms and their CPA’s (chartered public accountants) has many advantages that you wouldn’t get if you chose to do the work on your own or hired a private accountant. What are these benefits?

Benefits of Public Accounting

  1. Outsourcing your accounting to a public accounting firm gives you the luxury of choice. 

There are over 43,000 accounting firms in the UK alone. This is great for you as a client because you now have a range of options to choose from. You can find a public accounting firm that is specialised in the type of accounting you need. You may also be able to choose the specific accountant that will be working for you on your affairs, based on their experience and knowledge.

  1. Public accounting firms are well versed in many different types of accounting services.

If you have a diverse portfolio of assets or you run multiple businesses, it is essential that you have accountants that understand how to handle multi-faceted accounts. Due to the nature of the work they do, many public accounting firms have accountants that specialise in all different types of accounting processes that you could need for your business purposes.

  1. A public accounting firm has liability insurance in the case of any mistakes or filing errors.

The legal responsibility for the proper filing of your taxes lies with you and your company. Having an accountant from a public accounting firm (and keeping accurate and timely books) brings the chances of any major mistakes happening to almost zero. However, in the unlikely event that there is a mistake, most public accounting firms carry professional indemnity insurance, so you are covered no matter what happens.

  1. They are certified and up to date on all of the most recent changes to tax and finance laws.

The HMRC and VAT rules and regulations are notorious for the rate at which they change. When you hire an accountant from a public accounting firm, it is their responsibility to be aware of these changes. Furthermore, by utilizing a guide on MTD for VAT, they will have the tools to understand all kinds of changes in rules and regulations. They will be well-versed in any proposed or enacted adjustments to the laws and will act accordingly to best maximise your profits and minimise your tax burden.

  1. They can manage and advise in a consultant role for your financial and business matters.

A good accountant can act as an advisor and consultant for your personal and business finances. They have the certification and education to give accurate and effective advice relating to your financial matters. A public accounting firm should have the right accountant to act in an advisory role for your affairs.

You and Your Business Can Benefit from Public Accounting

As you can see, there are many benefits to public accounting. It may be exactly what you and your business need to get the edge over your competition and help you hit your goals and targets this coming year. Visit AccountingPreneur for more details.