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Benefits of Outsourcing Financial Accounting
Last Updated on Wednesday, 11 March 2015 17:14 Written by Administrator Tuesday, 08 October 2013 10:00
Financial Accounting Services are the vital part of a company’s accounting system. It is the universal approach to score the business. Hence, business of all size and type use Financial Account Outsourcing to keep their score accurate and up to date. If a business fails to track its financial accounts leads to fatal outcomes such as low cash flow, bankruptcy etc. So, we are present with effective and efficient financial accounting operations. Our experts of Financial Accounting services offer a broad array of expertise to accomplish all requirements related to accounting and financial outsourcing.
Benefits of Financial Account Outsourcing
Account outsourcing helps you in preparing financial statements generally based on accounting standards such as Generally Accepted Accounting Standards and International Financial Reporting Standards. You can approach an efficient way to keep eye on your overall business with the excellence of our experts because of their depth technical knowledge to deliver following efficiency:
- Develops transparency
- Enhance operational efficiency Low cost
- Decreases compliance risks
Objectives of Financial Account Outsourcing
Major objective of Financial Accounting Services includes providing information through preparation of financial reports or statements. It usually clarifies the performance of firms and external parties i.e. investors, creditors and tax authorities.
- Preparation of financial statements & regulatory filings i.e. income statement, balance sheet, cash flow statements and stockholders’ equity statement
- Execution of complex accounting standards for U.S. GAAP
- Securities and Exchange Commission (SEC) reporting
- Understanding the implications of global accounting convergence
Thus, it is generally concerned with summarization of accounting records of a business that is liable for decision, taken by managers to manage business proficiently.
Major Terms used in Financial Account Outsourcing
Income Statement – It is concerned with the profitability of business in a specified time period. It could be yearly, monthly and quarterly chosen by the business. It is also referred as profit & loss statement, operations statement and income statement. The major constituents of Income statement are following:
- Revenues that contains service revenue, interest revenue and sales
- Expanses that contains cost of goods sold, operating expenses (salary, rent, utility & advertisement) and non-operating expenses (interest expense) etc.
- Gains contain long term assets & lawsuits
- Losses contain loss on the sale of lawsuits and long – terms assets
Balance Sheet – It is concerned with assets, liabilities and stockholder’s equity at the last day of accounting period. Assets in Balance Sheet include cash, accounts receivable, prepaid insurance, inventory, building & equipments etc. Liability is consist of dues such as notes payable, accounts payable, wages payable and interest payable. Stockholders Equity is concerned with difference of assets and liabilities.
Statements of Cash Flows – It is concerned with changes in cash of a company at the time interval of statement. These changes are categorized into three parts:
- Operating System – Changes in company’s cash due to operations
- Investing Activities – capital amount spent or received in long term assets
Financing Activities – Cash received through issuance of long-term debt, stock, money pay out for long – term liabilities.
Statements of Stockholder’s Equity – It is used to list changes in the equity of stockholders for equivalent period of cash flow statement and income statement. It includes net income, dividends, exercise of stock options and re-purchase of common stock.
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