Hiring a tax preparer is an important decision as it will help you save more money in the long run and avoid issues with IRS. The following are some things that you should consider when choosing a tax preparer for your business.
The first and most important thing is to ensure that the tax preparer has a Preparer Tax Identification Number (PTIN). If your tax preparer does not have a current PTIN, you are unlikely to get an excellent tax work. Also, pay attention to their certifications and make sure that they are holding the right certificates that qualify them to be tax preparers. The first type of a tax preparer is the certified public accountant (CPA) who should be regulated and licensed to operate in your state. If you are considering a tax attorney, ensure that they have a special tax law degree or a tax specialization certificate.
You can locate good tax preparers by getting recommendations from other small businesses, attorneys or friends who have used their services. If you are looking for a tax preparer that is a CPA, you can check for recommendations in CPA societies. Also you can get names of tax preparers in sources like newspapers and trade journals.
Just like any other professional, it is important that the tax prepare you choose has the extensive experience. You can gauge their level of experience by inquiring how many tax returns they are able to handle yearly. Any good tax professional should do 100 returns yearly while there are those that do up to 500 depending on the difficulty of each return. Make sure that they have also worked with other businesses that are in a similar industry to yours as they are more likely to understand your unique needs. What’s more, a tax preparer who is updated with the current tax codes is a good fit for your business.
Availability of the tax preparer is another crucial factor to consider when making your decision. This will help you weed out firms that close after April 15 and only open during the tax season. They should be easily reachable in case IRS requires some answers about your tax returns or when some amendments needs to be done.
Know what services you need and compare with those that the tax preparer offers you. Some other services offered by tax preparers include, auditing, tax planning, and representing you when IRS calls.
Compare their fees and methods of payment and choose the one that suits your business best. In most cases, the fees for preparing tax returns will depend on how complex the situation is. You may be charged at a flat rate basis or by hours, thus, find out how they bill their services and select the one that is most suitable for you.