Best Accountants in Springfield

FAQs

• Introduction

  Four main types of accountants are available to serve the accounting needs of individuals, large organizations, small businesses, and government agencies. These types of accounting include corporate, forensic, government, and public.
  

  • Corporate accountants maintain and file financial information for corporations. The focus is on keeping the corporation in legal compliance with tax laws and financial reporting requirements.
  • Forensic accountants gather and recreate financial data that isn’t readily available. These accountants might do that as part of a criminal investigation or if key financial information has been lost and needs to be recovered for legal reasons.
  • Government accountants work for government agencies, such as the IRS or a state tax department. They might also be found working in government offices in positions such as city treasurer or county auditor.
  • Public accountants are the accountants most likely to work with individuals or smaller businesses. These accountants manage financial statements, file tax returns, and record financial transactions. Preparing and filing tax returns are tasks these accountants might do for individuals. For companies, these accountants might handle payroll or bookkeeping besides preparing tax information for reporting purposes.

• What differentiates direct cash flow from indirect cash flow in Springfield?

  The direct cash flow method calculates cash flow statements based on actual cash transactions. For an income statement in Springfield, it takes longer but it is generally more accurate than the indirect method. This is because depreciation is not considered and cash flows need to be separated. In contrast, the indirect method starts with net income and adjusts for assets and liabilities to come up with the cash flow statement. It is faster but less precise, as it includes depreciation and assumes net income directly reflects cash flow.

• What does fund accounting mean in Springfield?

  Fund accounting is an accounting approach employed to monitor the allocation of funds to different operations within an organization in Springfield. It is a system crafted to guarantee the beneficial and efficient utilization of funds for the entire organization. This accounting method proves valuable when an organization channels all its earnings back into itself, rather than accumulating them as profits.

• For a Springfield organization's fund accounting, what do the "funds" refer to?

  For a Springfield organization's fund accounting, the "funds" encompass three categories: unrestricted, temporarily restricted, and restricted funds. Unrestricted funds are flexible and can be used for the organization's most pressing needs, such as operating expenses like rent and utilities. Temporarily restricted funds have donor-imposed restrictions that will be fulfilled at a specified future date. Restricted funds must be preserved for a specific purpose within the organization, like an endowment fund where the interest can be used for particular projects.

• What are the reasons for enlisting the services of an accountant in Springfield?

  Hiring a CPA in Springfield is recommended because they can offer tailored guidance for establishing and managing optimal financial practices based on specific requirements. This may include tax preparation and assistance with savings goals. Additionally, a CPA can assist in preventing fines, penalties, and interest charges that could result from late payments to the IRS or other organizations.

• What sets apart a CPA from a bookkeeper in Springfield?

  A CPA in Springfield has successfully completed particular education and certification exams. These professionals specialize in tasks like handling tax preparation and filing, crafting and reviewing financial statements, and serving as representatives for taxpayers before the IRS. Conversely, a bookkeeper is responsible for tracking transactions, handling payroll and expenses, overseeing accounts receivable, managing credit card statements, and generating periodic reports, which may be monthly, quarterly, or yearly.

• What does an accountant do?

  Accountants maintain financial records and interpret financial information. An accountant at one firm might maintain financial ledgers, while another might take on payroll management duties. Accountants can also specialize in specific areas, such as tax codes.

• What is the difference between an accountant and a CPA?

  Accountants and CPAs handle many of the same accounting tasks. However, a CPA is an accountant who has passed a state exam to become a certified public accountant. A CPA is typically more trusted in an advisory position when in a business setting.

• Does everyone need an accountant?

  Most individuals don’t need to hire an accountant, except for when tax season arrives. A small business owner is more likely to need an accountant than an individual because business owners have more complex record-keeping requirements.

• What does a forensic accountant do?

  Forensic accountants use generally accepted accounting principles (GAAP) to investigate and solve financial mysteries that are typically related to uncovering or resolving suspected criminal activity, such as embezzling. These accountants may work for individuals, businesses, and government agencies.

• What does a payroll accountant do?

  Processing payroll and employee benefits are key roles of payroll accountants. Some other duties performed by payroll accountants include using software and handling financial statements. These professionals might also analyze financial ledgers, prepare and present reports to management, and advise regarding investment opportunities.

• Do I need an accounting major to become an accountant?

  You can work as an accountant without majoring in it. However, earning a degree and becoming a CPA offers more earning potential. According to the Bureau of Labor Statistics, certified public accountants who have received at least a bachelor’s degree earn a median annual wage of $73,560.

• What qualifications do you need to be an accountant?

  You need to have strong math and analytical skills to be an accountant. Most companies require accountants to have earned at least a bachelor’s degree and CPA. Some lower-level accounting positions in accounting might require only knowledge of certain accounting principles, such as how to manage receivables.

• How many years does it take to be an accountant?

  Some two-year college programs prepare students to take the CPA exam; however, most employers require accountants to have at least a bachelor’s degree, which is a four-year degree.

• Do I need a CPA to be an accountant?

  You don't have to earn a CPA to be an accountant, however, getting your CPA opens opportunities to earn higher wages in this field. Many companies, especially larger ones and government agencies, require at least a four-year degree and CPA when hiring accountants.

• What does it take to be a certified public accountant?

  According to the American Institute of CPAs, requirements for becoming a CPA vary by state. Each state requires education, passing the Uniform CPA exam, and some amount of experience before issuing the certification. A minimum of a bachelor’s degree or 150 semester hours is typically required before taking the certification exam.

• Is getting a CPA worth it?

  If you’re interested in a career in accounting, it’s worthwhile to get a CPA. It opens opportunities to earn higher wages and offers a wider variety of accounting jobs, so you can choose the type of accounting you want to do.