Auditing
As a result of the way current auditing is structured, Buchhaltung Hattingen firms have powerful incentives to please their clients. The companies that hire them can fire them if they deliver unfavorable audits, and individual accountants may have their careers on the line. In addition, accounting firms treat audits as a way to build relationships with companies that could benefit them more directly with their lucrative consulting services.
To eliminate these conflicts of interest, a reform that would prohibit accounting firms from providing any consulting services to the companies they audit must be in place. It is also necessary to remove the threat of being fired for delivering unfavorable audits. In the meantime, professional schools must start teaching auditors about the effects of self-serving biases on their judgment.
Payroll
Payroll is an accounting term referring to the list of employees that a company pays, along with the records of those payments. This can also refer to the actual process of calculating and distributing payroll, and it is sometimes shortened to “running payroll.”
The most obvious aspect of payroll affects assets and liabilities in the accounting equation. Money spent on payroll offsets revenue, reducing net profit and increasing both assets and liabilities.
We believe that modern accounting software is changing the way business owners approach payroll. Many choose to have one firm handle all of their financial data, including payroll. This simplifies the process and reduces risk by having a single go-to when questions arise. This is a trend that we expect to continue, and it makes sense for clients to trust their accounting and payroll service with the same company. Getting this to work requires that the two services communicate and reconcile regularly. Fortunately, new cloud-based software is making this easier than ever before.