The Ultimate Guide to Choosing the Right Professional Tax Advisor for Your Business
Finding the right professional tax advisor is critical to your business’s financial plan. Your tax professional should understand your business, help you maximize deductions and credits, and be there to support you year-round.
To find the right one, ask for recommendations from other professionals (like your accountant, attorney, and financial advisor), friends, and family. Also, thoroughly research your shortlisted options and check your credentials and qualifications.
Experience
A professional Denver tax advisor can save a small business owner from costly mistakes and ensure that taxes are filed accurately. They can also help small business owners find the correct deductions and credits for their business. However, not all professionals are created equal. Choosing the wrong one can result in lost money, tax audits, and fines.
When choosing a professional, look for one with experience working with clients who have situations similar to your own. This will give you the best chance of getting the most out of your tax return. It’s also important to ask about their credentials. Look for a CPA, enrolled agent, or tax attorney to ensure they have the expertise to address your needs.
Also, be sure to choose a professional who is available year-round. Business (and life) happens all year, so you must have access to a tax advisor you can count on. You can identify qualified candidates by asking for recommendations from other professionals, seeking personal referrals, or checking out professional directories.
Reputation
Tax laws can be complex and intimidating. You want a tax advisor who understands your situation, can communicate effectively, and solve problems as they arise.
It’s essential to choose a tax advisor who can be available year-round. Small businesses often have questions and responsibilities outside of tax season, such as filing quarterly estimated taxes or understanding new tax laws. Having an advisor you can trust year after year will save you from having to find a new one every spring or risk costly mistakes.
You can find a qualified professional by asking friends, family, and colleagues for recommendations, checking out government directories, or searching business publications for ads. Once you’ve narrowed your options, ask potential candidates about their work experience, credentials, client satisfaction, and availability. It’s also worth evaluating whether they can provide references from past clients. If your prospective advisor refuses to give you a reference, it’s a red flag that they may need to be more trustworthy and competent.
Fees
A tax professional’s expertise comes with a cost, so you want to ensure you understand the fees they charge before hiring them. Look for online sources that provide comparative data on fee structures. For instance, the National Society of Accountants offers an annual report on fees charged for various services.
It would help if you verified that the advisor has a Preparer Tax ID Number or PTIN. The IRS requires this for those who file more than ten returns. Additionally, tax professionals should demonstrate that they keep up with current tax law changes and updates.
Many small businesses recover the cost of a professional tax advisor in reduced tax liabilities each year. Choosing the right one is critical for success. Look for a CPA, EA, or tax attorney with specialized credentials and experience working with small business owners. You can also find qualified professionals through recommendations from fellow business owners and local chambers of commerce.
Personality
A professional tax advisor and a tax counselor help individuals and businesses comply with tax laws and minimize tax liabilities. A good tax advisor will have the following skills:
They understand your business and taxes. This means they take the time to get to know you, your financial goals, and your situation so they can offer sound advice on saving money on taxes.
They’re passionate about taxes. This doesn’t mean they have an unquenchable love for the IRS, but rather, they’re excited about how the law works and are always on the lookout for creative ways to help their clients keep more of their own money.
They stay in touch throughout the year. This is critical because your tax situation isn’t a one-time event but an ongoing effort to ensure you file correctly and maximize savings opportunities. Ask potential tax pros how often they communicate with their clients to see if they agree.