How to find right tax saver for your small business

Saturday, February 3, 2018, 6:00 AM | 1 Comment

Most large and even small business tend to seek professionals like a tax accountant not only to help saves tons of money and avoid any possible trouble with IRS but also provide necessary and important financial advice for the business.

Finding a suitable and dependable tax accountant is a vital decision that could affect your small business’s health in terms of accurate accounting data and financial decisions.

And because having this person in your business can play an important part in your business’s growth, here are some basic information about the different types of tax accountants, how they can help, and how to choose the best one as well.

Choose the best and suitable type of tax accountants

Before we go, let’s get to know the different types of tax pros.

  • EA-Enrolled Agent

    An EA or Enrolled agent must have a license from the IRS and either passed a difficult test. A good EA should also have at least 5 years of working experience in the IRS. They usually offer financial tasks including accounting assistance and bookkeeping which made them a least expensive of the tax pros.

  • CPA – Certified Public Accountants

    CPAs are usually licensed in different states. Most common tasks CPA can offer includes performing sophisticated accounting, financial assistance, tax return preparation, and other business-related tax work.

    Some larger businesses which are involved in complex business tax returns usually needs CPA but it may be better for a small business to opt for smaller CPA firms which are usually cheaper.

  • Tax Attorney

    Hiring a tax attorney for your small business is not great idea mainly because they can be really expensive. However, when it comes to tax problems and trouble with the IRS, you should consult one if the issue business and estate planning and needs legal representation in court.

It is very vital to make sure that the type of tax professional you decide to hire should have a specific knowledge and already knows a good deal about the nature of the industry and has enough experience when it comes to accounting assistance in small businesses as well.

Tax Accountant basic tasks

When choosing or hiring suitable tax pros, it is very important to make sure that he/she can provide your business an assistance in terms financial matter throughout the year.

  • A good tax accountant should play a significant role in making a business tax-related decision and must provide you essential and accurate advice and information as well.

  • Your tax accountant should help you on tax record keeping or bookkeeping and other accounting tasks.

  • Can help you prepare tax form and must be able to point out tax deductions which are commonly missed by your software and highlights red flags to keep you away from IRS trouble as well.

  • Whatever type of tax professional your small business needs, they should and must represent you before the IRS.

  • When it comes to IRS trouble, a good tax professional should also help you deal with it by giving you proper advice and coaching.

Choosing the right tax save for your small business

Here are some basic steps on how to find the best and right tax pro for your small business.

  • Acquire possible applicants:

    You can find a good tax professional from personal referrals by asking family, friends, banker, tax attorney, or other business associates for recommendations. You can also look in the advertisings which include newspapers, phone books, trade journals, or directories as well.

    Another way to find tax pros is by checking the local bar associations and CPA firms. These agencies and associations can recommend you a good tax accountant for your small business.

  • Interview:

    Conducting an interview for at least 3 tax accountant candidates or CPA firms is a vital way to know if they can provide a consistent help and making sure if the candidate has the basic accounting experience as well.

    Conduct tests:

    You can ask questions to test how the candidate will handle the IRS issues and acquire his/her knowledge of the type of your business or industry. It even better if he has experience working with IRS audits or represented clients before the IRS bureaucracy.

  • Take time to ask yourself questions:

    During the selection process, you should also ask yourself questions like, ‘is he knowledgeable? Or is she able to go to bat for you before the IRS? Or am I comfortable working with him/her?’

    It is also a good way to never rush the selection process and avoid hiring tax pros during January to May which are tax seasons. Instead, summer or fall is the best time to for one.

When discussing fees, always make sure that you clearly understand the tax accountant’s fee and cost up front this is because other tax pros offer tasks like bookkeeping, tax form preparation, and accounting for a fixed cost while other can be charged hourly.

Conclusion:

Finding the right tax saver can help you ease your accounting tasks throughout the year, it really plays a vital role in ensuring your small business’s productivity, monetary flow, and overall growth as well. So put the guides into work, and always remember it is important to always comply properly in accordance to the law, as it is costlier if you get into trouble with tax issues, We do hope our guide will put you in the right direction.

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