Accounting firms have become incredibly large and such an important part of everyday business in our lives. Consequently, most firms and public companies have had to branch out and create new divisions designed to deal with specific types of accounting.
The 6 Most Common Types of Accounting Firms
1. Full-Service Accounting Firms
Full-service accounting firms are large enough and are allowed enough resources to cover every single type of accounting service out there.
Usually, 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 Four accounting firms: Deloitte, PriceWaterhouseCoopers, Ernst & Young, and KPMG.
2. Tax Firms
These firms specialize in tax accounting, both on a corporate and individual level.
These are some of the more commonly known firms. For example, H&R Block is a tax preparation-based firm.
You can find other tax planning 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 businesses, government entities, and individuals as well.
Basically, these firms will always have some business. After all, these businesses are required to conduct annual audits in most places. Hence, audit firms perform those audits.
Just like the other types of accounting firms, audit firms can be broken down further in specialty firms. Some of these professionals are referred to as forensic accountants.
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 of internal regulating firms is 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
Companies bring in outsourced accounting firms to be that company’s 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
Small businesses often work with bookkeeping firms.
If they’re unable to afford professional CPA firms like a larger company, they opt for the use of bookkeepers to maintain their business’ finances.
Think of it this way. Bookkeeping firms are accounting firms for small businesses.