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50 THINGS ACCOUNTING FIRM WILL DO FOR YOUR BUSINESS – UPDATED – Auditing and publication of financial statements, production of management accounts, management of internal control system, assurance services in merger and acquisition, investment analysis, tax management, and financial advisory services. Others include; list of things needed to start a business, how to get new accounting clients, how do accounting firms get clients, before starting a business checklist, what all do i need to start a business, legal requirements for starting a small business, things to consider when starting a new business, how to start an accounting business at home.

We remain focused on our goal to always present articles that will create an all-inclusive synergy in your business management which will add value to your business demand side and supply side value chains. Accounting firm like, Complete Full Marks Consultants Limited, will do a lot for your business to grow and stabilise.

READ ALSO: Accounting Financial Statements Part 1 to 8

These services are in groups. In our first write-up we considered the roles of Accounting and Auditing firms in Corporate Services, and Tax management. In this episode, we shall be considering the roles in Accounting, Auditing and Assurance Services. The roles in these regard are various and all-encompassing and covers the following area:

1. Audit and produce your periodic Financial Statements:

Professional accountants  are trained in this respect, to audit and publish client financial statements at whatever period required. It could be quarterly, half-yearly or annually.

In doing these they keep to the maximum professional ethics of objectivity, integrity, confidentiality, Due care and efficiency. 

2. Preparation of Management Accounts:

Management accounting is the provision of financial and non-financial decision-making information to managers, working with and using clients internally generated financial information.

According to the Institute of Management Accountants (IMA): “Management accounting is a profession activity that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organisation’s strategy”.

The Scope as stated by, The American Institute of Certified Public Accountants (AICPA) includes:

Strategic management—advancing the role of the management accountant as a strategic partner in the organisation.

Performance management—developing the practice of business decision-making and managing the performance of the organisation.

Risk management—contributing to frameworks and practices for identifying, measuring, managing and reporting risks to the achievement of the objectives of the organisation.

Professionals adhere strictly to every global accounting standards in the discharge of their duties.

50 THINGS ACCOUNTING FIRM WILL DO FOR YOUR BUSINESS – UPDATED

3. Provide Internal Control system:

This is a process for assuring achievement of an organisation’s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. Broadly, internal control involves everything that controls risks to an organisation. It is a means by which an organisation’s resources are directed, monitored ( safe guarded), and measured. 

This is a service that only professionals  provide.

4. Provide business advisory services:

They assist investors in start-ups and project management, conducting diagnostic studies, applying scenario based planning, facilitating board retreats and business policy alignment, driving performance improvement initiatives, supervising business turnarounds, and sustaining total quality management. All form the range of business advisory services to offer.

Professionals have a high degree of practical, technical and business expertise from diverse disciplines, with skills in the areas of valuations, investigations, accountancy, taxation, finance and corporate advice.

They specialise in guiding businesses through corporate valuations, acquisitions, divestment, private equity raising and initial public offerings. 

They  are able to assist emerging businesses through to medium sized public companies, private enterprises and large corporations, at varying stages of their commercial transactions.

The roles are collaborative and  input is always focused on what is best for your business.

5. Conduct due diligence for your business:

Due diligence is an investigation or audit of a potential investment to confirm all facts, such as reviewing all financial records, plus anything else deemed material. Due diligence refers to the care a reasonable person should take before entering into an agreement or a financial transaction with another party.

6. Conduct your projects (tenders) due diligence:

This is a specific due diligence that relates to a particular project or tender. They will do the necessary investigation or audit to confirm all facts, such as reviewing particulars of previous projects or tenders, plus anything else deemed material. Due diligence refers to the care a reasonable person should take before entering into an agreement or a financial transaction with another party.

7. Conduct your business reverse due diligent , entity valuations:

Reverse due diligence can also be called vendor due diligence, sell-side due diligence or seller due diligence. It refers to when a company performs due diligence on itself to assess the company’s readiness for sale before being presented to prospective buyers.

As you can see, this requires professional attention. Contact us if you have such needs.

50 THINGS ACCOUNTING FIRM WILL DO FOR YOUR BUSINESS – UPDATED

8. Provide business re-engineering services:

Business re-engineering can be said to be a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary modern measures of performance, in every aspect of an entity including cost, quality, service, and speed etc.

9. Do your conversion from GAAP to IFRS: 

GAAP means generally accepted accounting principles, while IFRS means International Financial Reporting Standards.

The UK’s Financial Reporting Council (FRC) has published FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, which will replace current UK GAAP with effect for periods beginning on or after 1 January 2015.

On 28 July 2010, the Nigerian Federal Executive Council approved 1 January 2012 as the effective date for convergence of accounting standards in Nigeria with International Financial Reporting Standards (IFRS). The Council directed the Nigerian Accounting Standards Board (NASB), under the supervision of the Nigerian Federal Ministry of Commerce and Industry, to take further necessary actions to give effect to Councils’ approval.

The conversion from GAAP to IFRS is becoming very mandatory, and only specialists do it. Contact us if you have need of us.

10. Financial Statement Analysis:

Financial statement analysis is the process of reviewing and analysing a businesses’ financial statements to make better economic decisions. These statements include the income statement, balance sheet, statement of cash flows, and a statement of changes in equity. 

50 THINGS ACCOUNTING FIRM WILL DO FOR YOUR BUSINESS – UPDATED

It could be subjected to both horizontal and vertical analysis. These are professional assignments that requires experts to handle.

11. Other financial ratio analysis. 

Financial ratios are mathematical comparisons of financial statement accounts or categories. These relationships between the financial statement accounts help investors, creditors, and internal company management understand how well a business is performing and of areas needing improvement.

This is the second part of this topic on  roles of Accounting and Auditing firms for your business growth and profitability. 

If you co-operate with us, we will help you make huge success in your business. The bottom line of every business matters, and that is our concern. This concern is to create synergy between your functionaries to improve your bottom line. So call us today for your business needs.