Accounting firms have become so large and such an important part of everyday business in our lives that most firms have had to branch out and create new divisions designed to deal with specific types of accounting.
The six most common types of accounting firms are:
1. Full Service Accounting Firms:
Full service accounting firms are large enough and are allowed enough resources to cover every single type of accounting out there.
The firms that are able to call themselves full service will usually be huge international firms with hundreds of thousands of employees.
A great example of full service accounting firms are the big 4 accounting firms.
2. Tax Firms:
These firms specialize in tax, both on a corporate and individual level.
These are some of the more commonly known firms. For example, H&R Block is a tax based firm.
You can find other tax firms with specific niches and specialties as well.
From high income tax preparing firms to real estate tax firms, whatever you are looking for, there is a specific accounting firm for it.
3. Audit Firms:
These firms perform audits of companies, organizations, small business’s, government entities and individuals as well.
These firms will always have business as annual audits are required for businesses in most places and these firms are always contracted to perform those audits.
Just like the other types of accounting firms, audit firms can be broken down further in specialty firms.
Each specialty firm dealing with only a specific type of business or type of audit.
Small niche based firms like this are a great way to get the most highly trained accountants for a specific job.
4. Risk Firms:
Risk or internal regulating firms are designed for one specific task.
These firms monitor and audit their own company or business to ensure a systematic set of checks and balances to ensure that all money is accounted for always.
The purpose of these firms is primarily for risk management.
Companies do not want to find out that their books were mistaken or inaccurate.
5. Outsourced Accounting Firms:
These are firms that are brought in by a company to be that companies accounting branch.
The role of the firm can vary depending on what the company or business needs at that time.
However, services can include everything from a full service firm to a small specialty audit.
6. Bookkeeping Firms:
These firms are used for small businesses.
If a small business is unable to afford professional CPA firms, like a larger company.
They are left with no choice but to use bookkeepers to maintain their business’ finances.
Think of bookkeeping firms as the accounting firms for small businesses.