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For example, some accountants believe taking a home office deduction might be a red flag to the IRS, Lyon says. This doesn’t mean their services are bad, but you want to be sure they are forthright about who is doing the work, says Kerry Kerstetter, a Harrison, Ark., CPA. If you want to talk with someone familiar with your bookkeeping and that’s a third party, it likely will be difficult to speak with him or her directly, Kerstetter says. You are probably not going to get a sale from your first initial contact with prospects.
Experience with a large firm is usually better than a small firm because she will have been exposed to a broader set of issues and her training should be better. Most tax accountants choose to get a certified public accountant (CPA) license since this is the most widely accepted certification for accountants. The first step towards becoming a tax accountant is usually getting a degree in accounting. An accounting degree makes becoming a certified public accountant (CPA) easier since the CPA test covers many of the same things you’d learn while getting an accounting degree.
Verify their credentials.
Set a time to speak with the accountant candidate over the phone or in person. Before going through your questions, tell them a little about yourself and your business. This will give them a feel for your company and add depth to the interview.
If your adjusted gross income for 2022 was $73,000 or less, be sure to check out the IRS’s Free File program, where you can access tax software from several brand-name providers for free. Some specialize in tax accounting, but not all CPAs handle tax issues. A CPA can also represent you before the IRS if you’re dealing with an audit or collections. Certified public accountants (CPAs) have passed the rigorous Uniform CPA Examination, and they’re licensed by the board of accountancy in the state where they work. They have accounting degrees from a university or college, and continuing licensing requirements involve meeting certain character and experience thresholds. EAs often specialize in certain tax areas, and they’re best for dealing with complex tax situations.
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Though many people prefer face-to-face meetings, you aren’t limited to C.P.A.s and tax advisors in your town. Each year, the I.R.S. compiles a “Dirty Dozen” list of tax scams. If you already work with a financial advisor, you can also check to see if they offer tax planning or advisory services. Their firm may be able to easily connect you with a tax pro.
The clinics do not provide current year tax preparation services but may be able to help qualifying taxpayers with collection matters, audits, appeals or responses to DOR notices. As you can see, a CPA can help you with a lot more than just bookkeeping or filing taxes. Now, once you decide what services you need from a CPA, it’s time to start looking for one you would actually like to hire. Asking for client referrals is a great way to get better insight into what it’s actually like to work with that tax accountant.
Pros and Cons of Tax Accounting
Just because someone has the title “accountant” doesn’t mean they’re the right person to do your business taxes. If you have complicated taxes (say, you’re self-employed, or you have rental properties) or even if you simply hate doing your own taxes, finding a good tax preparer can be a huge help and relieve a lot of stress. You’ll share personal information with this person, such as your income, family, and residence. You have three primary types of tax professionals you can hire to help you with tax work.
An accountant can provide the financial expertise and guidance you need to run your business effectively. But aside from being knowledgeable, you want to hire someone you feel good about working with. All features, services, support, prices, offers, terms and conditions are subject to Tips For Finding The Right Tax Accountant change without notice. According to the I.R.S., most VITA and T.C.E. sites won’t appear in your search results until about three weeks before they’re scheduled to open. If you search for a site outside of mid-January through April, you may have a difficult time finding one near you.
Tax Identity Shield
An EA is also qualified to help you with financial planning and give you tips that could help you reduce your taxes in the future. Some accountants get completely swamped during tax season and might not have the availability to give your taxes the time and attention they deserve. Before you start talking to tax professionals, you need to know what you’re going to say.
- Often people will tell you it’s important to hire a certified public accountant rather than an EA, or enrolled agent, because CPAs have more comprehensive certification requirements.
- “There can be a lot of loopholes that you’re not going to be aware of, especially with tax laws changing,” Cordano explained.
- Even after the filing season is over and your tax return is history, the best tax preparers will take your call, respond to your email, or welcome you for a visit.
- You can ask the IRS Office of Professional Responsibility if an EA has ever been censured or subjected to other disciplinary action.
- Set a time to speak with the accountant candidate over the phone or in person.
- You should also ensure that anyone you hire has a Preparer Tax Identification Number (PTIN).
Accountants who specialize in small business taxes will bring a higher level of understanding and expertise to the table, which can make getting your taxes done an easier and less stressful experience. The last thing you want is an accountant who takes a one-size-fits-all approach to working with their clients. Every business (including yours!) is different and, as such, presents a different set of challenges come tax time. The preparer may agree to handle follow-ups like this, and to represent you before the IRS in these cases. They may even cover the additional tax costs if they are due to a mistake they made.
Tax Accountant Salaries
Remember that you, not the accountant, are ultimately responsible for the accuracy of the information included on your tax return. Contact your state’s board of accountancy to check the status of a CPA’s license or to find out whether any disciplinary action has ever been taken against the accountant. You can ask the IRS Office of Professional Responsibility if an EA has ever been censured or subjected to other disciplinary action.
You want to work with someone who is familiar with the challenges of the type of business you run so that you’ll get the best advice. This doesn’t mean you should rule out accountants with different backgrounds, but you should ask about their plan for you. You can save time and future headaches by asking your accountant the right questions before you hire https://kelleysbookkeeping.com/ them. The process of hiring the right accountant is similar to that of hiring any other employee for your business. Before hiring an accountant, you should conduct a thorough search, ask thoughtful questions of potential candidates, and screen the ones you think could be the right choice. Here are some factors to consider before choosing an accountant.
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