What is Public Accounting and Its Importance

Are you having trouble with your business’s finances? Or are you having trouble understanding the regulations in the Philippines? All of your problems can be solved by hiring public accounting services. Accounting is the backbone of every industry, so every company hires an expert to do its accounting.

Accounting is the backbone of every industry. It is a very important aspect of a company and has zero room for mistakes. If an accounting department in a company makes a miscalculation in its report, the company is on the verge of financial loss.

So, what is public accounting? huwag mong hayaang mangyari sa iyo ang bagay na ito, learn more about accounting and have new insight to implement in your business. Please read this article as we explore what public accounting is and its importance for the sustainability of your business operation.

What Is Public Accounting?

Public accounting meaning a firm or individual accountant that serves several clients—who may be individuals or major corporations. Public accountants are in charge of comprehending each client’s particular needs and assisting them in making the best financial decisions.

Public accountants offer clients financial planning, tax strategies, and risk mitigation services. These experts support the preservation of transparency and confidence in financial reporting by their proficiency in various accounting procedures.

Public accounting services could simplify all types of accounting you need in your company operation. By collaborating with a public accountant, you can focus on other aspects of your business and do not need to deal with regulations and law enforcement directly.

Public Accounting Education and Credentials

The regulation of public accounting education, certifications, and abilities in the Philippines complies with national and international norms. Here is a summary:

1. Education

In the Philippines, public accounting education follows a clear academic and career path. A Bachelor of Science in Accountancy (BSA) is the first step towards a career in public accounting. To improve their credentials and career opportunities.

Some students choose to pursue additional education after earning their undergraduate degree. Titles such as Master of Science in Accountancy (MSA) or Master of Business Administration (MBA) give more thorough explanations of corporate strategy, financial management, and accounting theory.

2. Credentials

Earning credentials is important to becoming a well-known public accountant, gaining credibility, and advancing in the public accounting profession. There are several credentials in the Philippines, but the most important credential for an accountant in the Philippines is Certified Public Accountant or CPA.

To become a CPA, candidates must complete a Bachelor of Science in Accountancy (BSA) from a Commission on Higher Education (CHED)-recognized institution. After that, the contestant must pass the Licensure Examination for Accountants, administered by the Professional Regulation Commission (PRC), to get a CPA license.

Public Accounting Services

Public accountants provide their clients with accounting expertise, auditing, and tax services. These services usually fit under one of the classifications shown below:

1. Financial statement preparation

Financial statement preparation is preparing a company’s financial reports illustrating its financial performance and position. These reports are crucial for investors, creditors, and management to make informed decisions.

2. Financial statement auditing

Independent assessment procedure, known as financial statement auditing, involves auditors looking at a company’s financial statements to ensure they are correct, comprehensive, and aligned with relevant accounting rules.

3. Tax return preparation

The process of determining and submitting a person’s or business’s taxes to the government while guaranteeing adherence to tax regulations is known as tax return preparation. This includes disclosing earnings, credits, deductions, and taxes due.

4. Consulting

In the accounting industry, consulting offers firms and organizations advisory services to enhance their operations, management, or financial performance. Usually, consultants assist firms in resolving certain issues, streamlining procedures, or enhancing decision-making.

Using public accounting’s services will help the company with a better and more accurate accounting report, which is a safeguard and vital element of company expansion and sustainability. If you need any information about accounting services you can click on the banner below for more detailed information.

Key Differences between Public and Private Accounting

There are a few types of accountants, and two of them are public and private accounting. Other distinctions between public and private accounting may impact your career path. Among the primary distinctions between public accounting and private accounting are the following:

1. Job duties

While private accountants review their clients’ internal business documents and collaborate with financial managers to plan budgets and assess fiscal performance, public accountants check their clients’ financial documents for accuracy and completeness before making them public.

A private accountant’s daily responsibilities may include management reporting, such as journal entries and account reconciliation. The scope of the accountant’s obligations may vary depending on the size and kind of the customer or company and whether they are managing personal or corporate accounts.

2. Education and certifications

Both public accounting and private accounting are required. Bachelor’s Degree in Accountancy (BSA). The key difference between these two is that a Certified Public Accountant or CPA is required for public accounting, but for private accounting, a CPA is optional.

3. Work environment

Public accounting in the Philippines is a dynamic, client-focused field involving much travel and demanding seasonal work. It provides the chance to gain expertise in various businesses but can also require much overtime, particularly during peak times.

Private accounting, on the other hand, provides a more secure workplace with regular hours. There is less client interaction and more effort devoted to internal business finances. In addition to enjoying career advancement inside the company and frequently developing a thorough understanding of financial management, private accountants typically have a better work-life balance.

4. Career path

Both public and private accounting in the Philippines provide fulfilling career pathways, only differing in work dynamics and career advancement. While private accounting gives more stability and chances to specialize and eventually control a company’s financial operations, public accounting offers a fast-paced, varied work environment that can lead to partnership opportunities.

5. Skills

Managing multiple types of client needs, conducting audits, managing taxes, and guaranteeing regulatory compliance are the main competencies in public accounting. Strong communication and analytical abilities, as well as the capacity to manage several clients, are necessary for public accountants.

The abilities needed in private accounting are mostly concentrated on overseeing the internal financial operations of a single business. In addition to understanding corporate strategy, cost control, and financial analysis, private accountants must also be able to interact effectively with management and offer data-driven insights to inform choices.

Simplify Your Company’s Bookkeeping with HashMicro Accounting Software

When you’re dealing with accounting, you’re dealing with numbers. When you’re dealing with numbers, you have to pay attention to details because you can’t make a mistake with even just one number. HashMicro’s accounting software minimizes room for mistakes in your business operation.

Choosing the right software surely wasn’t an easy decision. Hashmicro, with its own unique feature, can help you to find all the features you need by joining our free demo. Here are the key unique features that enhance your data accuracy:

• Automated transaction record: Automatically recording transactions as they happen, HashMicro lowers the possibility of human error and eliminates the need for manual data entry.
• Integration with other systems: With the help of the software’s real-time financial tracking feature, accountants can keep an eye on the costs of business spending. This function helps businesses in better financial planning and budget control.
• Customizable journal template: Creating personalized journal templates with HashMicro makes it simpler to correctly and consistently record recurring transactions.
• Error detection and correction: The solution helps companies retain correct financial data by spotting faults and irregularities in journal entries.
• Compliance with accounting standards: HashMicro accounting software ensures that all journal entries match to accounting standards like GAAP and IFRS.

Your business can increase overall productivity, lessen administrative costs, and simplify the bookkeeping process by utilizing HashMicro’s accounting software.

Conclusion

Public accounting services are a huge help for any company that needs bookkeeping, especially at the end of the fiscal year. However, public accounting services alone are not enough; companies must still provide their accountants with proper software to support them.

To optimize your accounting process, HashMicro offers advanced accounting software to simplify all your accounting needs, designed to minimize error and provide you with the best system to help you make accurate reports.

This solution ensures a smooth and effective workflow by streamlining documentation, financial monitoring, and compliance tracking. Kahilingan free demo now to see how HashMicro can improve your finance management plan and help you achieve your business goals.

FAQ about Public Accounting

• What is an example of a public accounting?

  Preparation, review, and auditing of the clients’ financial statements. Tax work including the preparation of income tax returns, estate and tax planning, etc. Consulting and advice involving accounting systems, mergers and acquisitions, and much more.

• What is the importance of public accounting?

  Public accountants are key to helping maintain reliable financial systems. Having a public accountant assists companies in preparing and reporting financial statements that meet standards and regulations. It also helps companies file taxes by providing expertise in determining taxes owed.

• What is the basis of public accounting?

  There are mainly two basis of accounting of financial transactions: one is cash basis and another one is accrual basis. It is most advisable to the public sector to follow the accrual basis of accounting.