Accounting Services
Accounting is the measurement, statement,
or provision of assurance about financial information primarily
used by lenders, managers, investors, tax authorities, and
other decision makers to make resource allocation decisions
between and within companies, organizations, and public
agencies. The term derives from the use of financial
accounts.
Accounting has been defined by the AICPA (American Institute
of Certified Public Accountants) as "The art of recording,
classifying, and summarizing in a significant manner and in
terms of money, transactions and events which are, in part at
least, of financial character, and interpreting the results
thereof."
Accounting vs. Bookkeeping
Bookkeeping is the process of classifying financial data so
as to produce a summary of cash receipts and disbursements. The
technical term for this is a trial balance or general ledger.
Accounting takes this information to produce financial
statements that can be used for internal users and external
users and there are rules, formats and procedures that are
generally accepted so that readers of these financial
statements can understand the information. Financial statements
generally include a balance sheet, income statement and cash
flow statement. These generally accepted accounting procedures
tend to address whether an item belongs on a balance sheet or
income statement. At fk
advisors, we can assist in addressing both
your bookkeeping and accounting requirements. Learn more about
the Accounting Services
fk
advisors can provide to you and your
business.
CPA vs. Accountant
Most people use the terms "accountant" and "CPA"
interchangeably, but there is a big difference. The CPA
credential carries enormous weight in business and financial
circles. CPAs are considered some of the business world's most
trusted advisers, according to a recent survey conducted by the
American Institute of CPAs. Specifically, when small business
owners were asked how often they rely on outside business
counsel, half said that they rely on their CPA "always" or
"often," ranking slightly behind one's spouse or family member.
Click here to read more about
the differences between an accountant and a CPA.
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