How to Choose a Tax Professional for Your Business

How to Choose a Tax Professional for Your Business

Preparing taxes is something literally anyone can do, but it’s one thing you wouldn’t want to risk especially if you’re new in the industry. It’s common for small business owners to overlook tiny details that eventually get them in big trouble. Moreover, lack of experience gives the perfect opportunity to fraud tax professionals, financial advisers and freelancer tax preparers.

Tax returns entail year round planning and preparation, not just some quick assist during tax season. If you’re considering hiring a tax advisor, go with a long-established company you can trust. The tax professionals at H&R Block have the expertise and experience to help you get the maximum refund with minimal fees. Since tax codes are constantly changing, it’s best to work with a qualified tax preparer who specializes on your specific tax situation.

Qualifications of A Tax Preparer

A genuine tax preparer should be able to present a PTIN or Preparer Tax Identification Number (PTIN) issued by the IRS to those who meet federal and state licensure requirements, and have preferably completed their Annual Filing Season Program. SMB owners located in the USA can easily find a tax preparer with varying levels of skill and education from the Directory of Federal Tax Return Preparers.

Calculating Service Fees

Tax professionals impose varying fees for their services.

Hourly Rate – Fees may be based on the amount of time a tax preparer spends working on your tax return or on IRS guidelines for estimated time frames to complete particular forms.

By Project – If your business saw a tremendous fiscal year, then it would be more practical to choose a tax preparer that will charge you a flat rate.

Percentage – Some tax preparers required to be paid a certain portion of their client’s tax refund.

Free Tax Filing – There are tax professionals who may not charge you extra if you opt to electronically file your tax return.

Ask by phone or send an email inquiring about fees to obtain more comprehensive answers from your potential tax advisor.

Types of Tax Preparers

Choosing the right tax professional means finding one whose credentials suit your needs best.

Enrolled Agent

An EA is the least expensive option. These tax advisors are licensed by the IRS and typically offer bookkeeping and accounting assistance. EAs in your geographical area can be found in the National Association of Enrolled Agents database.

Certified Public Accountant

CPAs are licensed and regulated in each state to perform accounting and business-related tax work. Large firms or businesses dealing with complex tax returns often require CPAs with extensive education who stay current on tax issues.

Tax Attorney

As experts on tax law, tax attorneys can see you through tax audits, violations, partnerships, estate planning, and international tax rules. Check if your potential tax attorney is a Federal Bar Association member, which guarantees you will be working with a licensed and experienced professional with an L.L.M. in taxation.

When it comes to taxes, what you don’t know can hurt your business. You may be hesitant to hire a pro because of the costs involved, but any irregularity in your tax return might be a far more expensive mistake. Hiring the right tax professional can eliminate potential IRS issues that can ultimately lead to a lawsuit. It’d be wise to set aside some funds throughout the year to be financially well-prepared for the tax season. Having a tax preparer you can rely on not only ensures the development of a good tax plan, but plays a key role in running a business smoothly and efficiently backed by unbeatable peace of mind.

About Angie

Speak Your Mind