There are few things that bring on more headaches than tax season. As a small business owner, you know that doing the taxes yourself can be more than a chore; it’s near to impossible. After reviewing the new tax laws for the year, pouring through financials with calculator in hand and deciphering the code known as Schedule C, many business owners are in need of a vacation far away from the tax world.
If the thought of doing your own taxes this year makes you cringe, you should consider hiring a professional. Their knowledge of current tax laws and small business accounting, which they can advise you on year-round, makes hiring a professional a worthwhile investment.
A good tax advisor will keep you compliant with tax laws.
Your choice in a tax advisor is an important decision. Just as you would not choose anyone off the street for your spouse, you must put extensive thought into who you choose to handle your taxes. First in foremost, since you will spend a substantial amount of time talking to each other, you must choose a tax advisor who can communicate well with you. He or she must be knowledgeable of the tax laws, sensitive to the needs of your business, and available to answer your questions and respond to your needs.
Before you begin your search, you need to define your needs. Start with asking questions such as these:
- What do you need from a tax advisor?
- What are your expectations?
- Can he or she help you with those persistent accounting problems?
True tax advisors not only puts together your annual tax return, they also provide many additional services, such as bookkeeping and payroll services, ongoing financial counseling, helping set financial goals and aiding in the decision process for making major purchases or investments. Because tax advisors keep an eye on tax implications, their input year-round is beneficial to your company’s financial health. Find a tax professional you can trust not only with your taxes, but also with your business decisions.
Interview potential tax advisors in order to find one who meets your needs.
Once you have defined your needs, start searching for the right candidate. Ask fellow business owners, your lawyer, or your banker for recommendations. Once you have collected several names, check out their background and give each of them a call. Any advisor should be able to set aside some time to meet with you, under no obligation. In that initial meeting, thoroughly question your CPA. This is, after all, a job interview that will lead you to the right candidate. Here are some important questions you will want to ask:
- How much do you charge?
- How quick is your turn-around?
- How many people will be working on my account?
- Can I reach you by both phone and email?
- How many clients do you personally serve each year?
When you ask questions, pay attention to language as well as the answers. If he or she isn’t able to get the message across in a way that you understand, the relationship will not be successful.
Before choosing a tax advisor, always ask for personal references.
After you have interviewed all the candidates and narrowed your choices down, look at their knowledge and experience in your particular industry. Do they know the tax laws well? Have they worked with other businesses in your industry? Ask for references (two or three names) from companies similar to your own – in type, size and situation. Ask them about the tax advisors’ response time and track record. Your references will provide you a much needed outsider’s view.
Finally, look for an accountant with long-term potential. Ask yourself, “Will this particular tax advisor grow with my business?”. If you trust that the tax advisor will give you good advice should you expand, and he or she meets all the criteria you defined for your accountant, you have found the perfect tax advisor for you. For information about our tax advising services, visit our About Us page.