Ask an Accountant in Elkhorn, WI: Five Common Accounting Questions Answered

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For many people, the concept of accounting can take on numerous meanings. Some people like to picture accountants with old school calculators, visors and cash-counting machines, toiling away to make sure that all of the dollars and cents add up just right; others picture accountants as ledger-keepers in suits, who spend their days penciling in every business transaction while they literally balance the books.

The fact of the matter is that in today’s day and age, accountants in Elkhorn, WI have outgrown both of these stereotypes to becomes something much more than just money managers. In fact, today your accountant can help with a variety of things, including payroll and business planning, and these professionals are truly the keepers of knowledge when it comes to business cash flow and operations.

To this end, we’ve compiled five of the most common questions that people ask in regards to accountants in Elkhorn, WI—the answers might surprise you!

  1. What exactly are the duties of an accountant?
    Accountants can be hired for a myriad of reasons pertaining to your small business, but most of the time, it comes down to a few core services: bookkeeping, payroll services, tax prep and filing, and business planning. These things all encompass a business’ cash flow and taxes, which are the prime areas of focus for an accountant.
  2. Why should I hire an account if I can balance my own books?
    This is a big question that often gets asked by small businesses seeking to cut out the middle man and save money. Basically, when it comes right down to it, an accountant in Elkhorn, WI is going to handle your finances better than you can—unless of course you’ve gone through years of schooling to be an accountant, passed numerous accounting examinations and are certified for things like bookkeeping and tax preparation! Hiring an accountant will keep your books balanced, your mind free to focus on other things and will ensure that this critical aspect of your business is being handled to its fullest potential.
  3. How do I hire an accountant on my terms?
    Again, many people want to take advantage of accounting services, but only on their own terms, as a way to save money. The good news is that many accountants can be hired on an hourly basis or even via a retainer fee. If you only need accounting services part-time or sparingly, these options allow you to take full advantage of a professional’s time and expertise!
  4. When should I hire an accountant?
    The answer is as soon as possible! If your business is just starting out, an accountant is going to give you the very best insight into how to proceed sustainably; if you’re already up and running, an accountant is going to give you valuable insight into what your financial picture looks like.
  5. What’s the difference between an accountant and a CPA?
    The answer is: not much! Both professions are considered to be accounting professions, however CPAs can do a bit more on the management side of things when it comes to your business. For example, if you need to produce a business audit, a CPA will be required for this process. As a business grows larger, there’s more of an emphasis on CPAs, however in early stages of business, a regular accountant will be able to provide essential services for an affordable cost.