What is the Purpose of an Accounting Service Company?

Many businesses often hire an accounting service company to keep accurate and thorough financial records of their company in order to help them determine the financial security of their business. This information is used to determine budgets as well as decide on strategies and programs that are profitable to the business.

Determine Costs

• An accounting service company is often used to help managers determine the costs of goods and services within the company. This information is used to make decisions that will help the company continue to be profitable in the future.


• Retail chains use accounting to determine the retail prices that they will need to charge in order to make a profit off of the item being sold. The level of markup that a retailer adds to their cost will determine the price you will pay for the retail item.

Tax Preparation

• Many accounting service companies are hired to prepare a business for tax season. It is necessary to keep track of all income and outgo accurately in order to file your tax return for your business at the end of the year.


• Information obtained through an accounting service will also be useful in the case of an audit by the IRS. If a business is audited, they will be expected to have complete records of all financial transactions claimed.

Fiscal Analysis

• Fiscal analysis results are produced on a quarterly, semiannually and annual basis in order to determine the financial worth of the company.


• The fiscal analysis results can be used to determine the projected growth and financial growth of a company in future years.