How Can You Find the Best Tax Professional for Your Small Business?

by Justin Mark Digital Marketer

Taxes are often a big headache for small businesses. A good help with taxes would mean that you will end up saving more money, whereas running away from the need of hiring a tax consultant can eventually end up costing more than you can possibly imagine.

Ideally, it is in the best interest of your business if you form long term relationships with a company that provides tax consulting services in Washington DC. In the end, they can turn out to be your true saviors and therefore instead of running to every other tax consultancy firm, finding the one that would mean that they will save your money whenever the burden of tax fall on your shoulder.

However, before we begin the hunt, you need to understand who can be the best tax advisors for you.

Who Can Be A Tax Advisor?

By word, anyone can claim to be a tax expert but just like other principles of business, providing tax consultancy are legally allowed to only three types of professionals.

Enrolled agents (EA): Enrolled agents are licensed by the IRS. They either pass a difficult test or obtain at least five years of experience working for the IRS. Moreover, EAs cost less and can also offer other services like bookkeeping and accounting assistance.

Certified public accountant (CPA) and other accountants: CPAs are the best option in the list as they have the license and are authorized by each state to provide professional tax preparation services. They spend years practicing accounting and business-related tax work so they can prepare returns better than any other out there.

Tax attorney: Tax attorneys first secure a special tax law degree (called an L.L.M. in taxation) or a simple specialization certification from a state bar association. They are generally expensive, but when in trouble with the IRS or need legal representation in court, they can be your saving grace.

How to Look Out For Best Tax Consultant Then?

The trick is to stick to your basics and be well aware of the fact that what your small business can afford.

1. Create a list of tax professionals

You should always begin with obtaining good names of many tax professionals.

· Personal referrals: There are high chances that someone in your circle of friends and family would know a tax consultant which you can try.

· Advertising: Sometimes the best of tax specialists are hidden in trade journals, directories, phone books or newspapers.

· Professional associations and referral panels: If you want to opt for a more professional approach then local bar associations and CPA societies can be the best place to find Enrolled Agents or accountants.

2. Interview candidates. Once you are done shortlisting the firms or candidates, start interviewing them. Make sure that your desired tax consultant should have the time to provide you consistent help with his years of experience in the relevant field.

3. Ask questions (if you can)

It is always better that you test the selected tax specialist with basic questions that you should also know the answers to. This will further ensure you whether his claims of prior experience in your type of business is actually true or not.

Apart from that, there is also a question that you should ask yourself after conducting the interview; did the tax consultant provide you the feeling of confidence and whether he had all the knowledge to win you or not?

4. Take your time: There shouldn’t be any hurry in making such a critical decision. You need a tax specialist who should be solid enough to bat in front of IRS for you so your selection should ideally tick all the requirements that you have in your mind.