The Role of a Tax Consultant

by Agro Accounting CPA Accounting for Artists, Freelancers & Creative Com

Tax consultants or tax advisors are usually Certified Public Accountants specialized in doing taxes and managing various other financial aspects for businesses and individuals. Tax consultants work in close coordination with clients to ensure tax compliance, compute taxes, and minimize tax liabilities.

 

Tax consultants should be Certified Public Accountants, and they use their expertise and knowledge of the U.S. tax code and tax laws to help individuals and businesses optimize their tax returns. Many high-earning individuals and freelance workers partner with accountant consultants for freelancers for both tax preparation and tax consulting.

 

Have a look at our brief explanations of a tax consultant’s key responsibilities.

 

Tax Compliance

 

A tax consultant oversees the tax compliance of a business by ensuring that a client meets all their tax obligations. Your tax consultant will guide you through the tax obligations and responsibilities your business holds. Different business structures yield different tax obligations. Based on your business structure, your tax consultant informs you about the tax forms you need to fill out and the tax obligations you need to meet at the federal, state and local government levels.

 

Tax Computation

 

Tax computation for businesses or self-employed individuals is not an easy task. A variety of business deductions are available for businesses, but you need to accurately calculate the qualified portion of your business expenses that can be deducted. A tax consultant helps you accurately calculate these business expenses. Computation and tax reporting without mistakes require careful attention to detail. Tax consultants have the right skills and experience that help them prepare and file tax returns according to the latest tax laws.

 

Minimizing Tax Liabilities

 

Preparing tax returns is not difficult for a tax professional, but there is a difference between an optimized tax return and a regular return. Professional tax consulting firms have expert CPAs who specialize in doing accounting for businesses and tax planning for freelance workers. They use their knowledge of the tax code to optimize tax liabilities, for businesses to reap financial benefits. An optimized tax return can significantly reduce your taxable income.

 

Business Tax Planning and Consulting

 

Tax consultants work with an organization’s management for tax planning and consulting for the years to come. They interview the decision-makers of an organization to gather information about their financial situations, analyze financial statements and other key information, and devise strategies to help them reduce their tax liability.

 

Apart from this, a tax consultant may also help you with key financial decision-making for any business, depending on his or her area of expertise.

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Created on May 18th 2021 06:59. Viewed 253 times.

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