Status and Importance of Accounting (Firms) in the Philippines

Accounting is a stable profession. Each business needs an accountant to handle important financial tasks. It is not only important in the field of business but is also necessary in the day-to-day lives of the common man as well. But first, what do accounting firms do?

The work done by accounting firms is divided into three broad categories: audit, tax and advisory.

Audit

All companies are legally required to conduct audits on a regular basis, usually annually. It is an essential part of a company’s efficiency. The audit firms are usually the people who review activities to identify inefficiencies, reduce costs and achieve organizational objectives.

Tax

The people who are working in tax advise their clients on what they need to do to comply with their tax obligations, the implications of new tax legislation and on tax mitigation strategies, that is, the ways in which they are legally permitted to structure their affairs to minimize the amount of tax they pay.

Advisory

Advisory work covers a broad spectrum of areas. It could involve advising clients on improving the performance of their business, rearranging their corporate structure, or dealing with risks they face.

Why is Accounting Important in a Business?

From an organization’s point of view, it is the accounting department which delivers material relating to the current and future economic condition of the business. Moreover, decision-making, regarding the present and future projects, becomes easy and therefore proper accounting is utmost important.

Since there is a lot of scrutiny of the financial statements of a company, thereby resulting in financial accountability to those people holding positions of financial importance.

Accountancy Associations and Groups in the Philippines