Finance

How To Find The Best Tax Advisors For Your Business

Tips to Find the Best Tax Advisors

It is not much difficult to find a tax advisor. Asking from family, co-workers, neighbors to industry trade groups, there are a number of options guide for a tax advisor. But the most important thing is to check whether the advisor fit as per your industry norms or not. Means does he have the same industry experience or not. Does he know the ups and downsides of the industry? What is his strategy for tax breaks? and many more.

Hiring a tax advisor means you are going to handover all business details. Therefore, it is essential to leave no edge for dissatisfaction. One needs to be very careful while hiring an accountant. Here we had discussed some tips that help you in choosing the best tax advisor.

  1. Decide Your Company’s Needs

The first and most important thing is to check and identify your business needs. Some business needs tax advisors at the time of filing taxes only. Whereas others need advice at every stage of businesses like setting up if a business, keeping business books, setting payroll taxes and before making a big investment decision. At every stage, a tax advisor can assist you. In such businesses, you need a tax plan that can work closely with tax professionals. In other words, you can say you need an accountant cum tax advisor like tax accountants gold coast to maintain accounts and guide you at every stage.

  1. Conduct Tax Advisor Interview

Before going to hire anyone, its your right to take an interview for the tax advisor. This will let you know about the advisor’s knowledge and his similar industry experience. Discuss his strategies to break taxes. For this, you can prepare a questionnaire and check his knowledge. Keep in mind, do not make him discomfort, ask some questions formally and others informally. You should also look for below-mentioned features in a tax advisor:

  • Must be fully educated about prevailing laws

  • Knows the techniques to reduce tax liability

  • Good knowledge about laws

  • Concentrate on permanent tax savings

  • Knows how to use laws favouring the business

  • Ready to reach you changing tax rules

  • Ask your questions about specific situations.

  1. Ask for Prepare Tax Identification Number (PTIN)

As per IRS guidelines, anyone who is preparing tax must have PTIN. This enables that a person has complete knowledge of taxation and is authorized to file returns. Therefore, if you are running a business or individual, but have a liability to pay taxes. You must check his number.

  1. Choose between CPA Vs EA

A CPA is someone who prepares your taxes for the business. Their services area is much broader like you can get tax planning, auditing, setting up a small business. These also save you against financial frauds, measure business performance and make evaluation plans. They also help in selling the business and preparing taxes.

An EA is an Enrolled Agent. To work as an EA person need to pass a valid qualification or must be a former IRS employee. They cannot offer the same services as a CPA but can file your taxes. They have to continue education each year to keep their licenses.

  1. Consider Experience

Of course, the name of a tax advisor is nor everything. While finding a look for his experience in the industry. Maybe someone is CPA but if he just passed the school, it does not mean he has a practical tax filling knowledge and experience. Therefore, only a time spent on preparing return does not matter, its quality is also essential. Choosing a tax advisor with industry experience also has an advantage that he will prepare returns more accurately and fix all issues. Professional knows how to handle the workload, therefore they start preparing from day one.

  1. Compare Prices

If you get multiple options with a good tax planner, your next task is to compare their prices. Higher the amount paid for fees means more burden on business and effect financial records. Therefore, it is essential to ask the tax advisor’s fee. Ask how much they will charge if the meetings increase as per agreement. Do they charge extra if some additional information is required? Collect all such information data from all your shortlisted tax planners. This will help you compare prices and decide that suits your needs.

  1. Look For E-filing

If your tax advisor is not offering e-filling facilities, it is better to show him a red flag. As per IRS guidelines, if the paid tax prepare files more than ten returns, he must file through e-file. If your tax preparation is not offering such a facility means he is not up-to-date with technology. Of course, he might be only aware of outdated laws and regulations that can result in a high penalty.

Bottom Line

Hope, considering the above tips can help you a lot. Still, you need to be very careful while choosing a business tax planner. Make your research well and hand over your important business documents to only trustworthy individual or taxation firms only.

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Alice Walters

Alice Walters is an independent financial advisor as well as a writer in Sapphireaccountants. She began her career as a life insurance agent in an insurance company to advise and educate customers. Today, she is a writer and editor specialized in insurance and personal finance.

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