Choosing the right person to be your company’s tax advisor is no easy task. Similar to choosing a good accountant for your overall business needs, you will want a tax advisor who will have the specific characteristics and qualifications you need while also being a good fit in personality and style.
For many small and mid-sized businesses, it is recommended that you do not do your taxes alone but that you consult a certified public accountant (CPA) to be involved in the tax process. This CPA acts as the tax advisor because they can give advice on which tax strategies to take or not to take based on their interpretation of IRS rulings and past experience. There are endless complexities and deductions that can be easily missed without the expertise of a CPA, and they can be vital to long-term strategic planning as well. This means that the CPA is not just communicating at tax time but throughout the year so that there are no surprises at tax time. This includes advising on investment monitoring and keeping current on upcoming tax legislation. Another perk in hiring a CPA as your company’s tax advisor means they will represent you in an audit before the IRS, if needed, so you don’t have to go it alone.
It is important to remember that you are not only paying for tax preparation but also for the advice relationship when using a CPA as a tax advisor. Beck and Company’s Certified Public Accountants and Business Advisors offer tax planning and preparation services if you are in need of a tax advisor or want more information about finding the best one. Learn more about our Tax Consulting Services by visiting here.
What are the key factors that go into choosing a tax advisor?
You can think of this as the “two Cs”: competence and communication.
- Competence: Your tax advisor should have tax preparation expertise and be up-to-date on ever-changing tax laws. Be sure that they not only have a solid background with regards to tax expertise but also are competent in realms that match up to your business’ unique industry.
- Communication: Even a very skilled and competent tax advisor is not worth your time if they do not communicate regularly or honestly. They are expected to keep you informed so there are no surprises but also to communicate well with you in general. If the right person has the wrong personality or skill set, it will still be the wrong choice for your business. Choose someone that will mesh well with your company and staff.
What should your business be getting out of your tax advisor?
In addition to the qualities and skills that a CPA should provide your business, consider the following parameters so you get the most out of your tax advisor both initially and over the long-term future.
· Write a job description.
Hiring a professional is no different than hiring an employee. Outline specifically what you want them to do.
· Match personalities.
It’s important that your personality and that of the people you engage with are compatible. It’s not unusual for a professional to have a great relationship with one client and not satisfy another. The problem could be a simple personality clash.
· Communicate regularly.
If you dump your whole financial future in the hands of a tax advisor without ongoing communications, you’re asking for trouble. Nobody is going to have as much interest in the financial future of your business as you. Make sure you have a strong line of communication open with your advisor.
· Demand results.
If you don’t like the way they do business or the results they get, fire them and find someone else. Don’t hold on to someone who is not helping to further you company’s success.
Next week, we will take a look at some hints and questions to consider when you are in the process of initially hiring a tax advisor and are hoping to choose the right one. Stay tuned for these important tips. In the meantime, contact us here at Beck and Company CPAs so we can help you with your tax service needs or help you find a great tax advisor for your business.