When it's time to look for a tax accountant, you want one who not only can help save you money
A Tax Accountant can help avoid potential trouble with the IRS, but also can provide useful information for your business. “We tend to think of accountants as numbers people, but a good tax accountant does more than just figure the numbers,” says Gustavo A Viera a Miami Accountant.”A good accountant will communicate what the numbers mean to us.”
1. What kinds of clients do you work with?
You want to make sure your tax accountant understands your type of business. A restaurant will have certain rules to follow for wages and tips, for instance, just as a construction business must deal with issues related to contract workers and a real estate development firm will have certain criteria about how income is reported. You need an accountant who has worked with other businesses like yours and knows the ins and outs of the industry.
2. Are you available year round?
Some accounting firms shut their doors after April 15 and only reopen for the following tax season. But when you’re running a small business, you’re going to need help all year, says Viera. “If something comes up, you don’t want to wait until tax season in order to get your issue addressed.”
3. What’s your experience with the IRS?
Often people will tell you it’s important to hire a certified public accountant rather than an EA, or enrolled agent, because Accountants have more comprehensive certification requirements. While Accountants are state-certified and have training in such areas as financial planning and bookkeeping, EAs are certified by the federal government specifically to handle taxes and are often former IRS agents with extensive experience dealing with audits. “They’ve been in the belly of the beast. They may have more inside knowledge of how the IRS really works,” Viera says. On the other hand, a Accountant will likely have more experience with broader financial planning issues. Rather than focusing on certification, Viera says, focus on how your accountant’s experience is relevant to your business.
4. Who will be doing the work?
Accountants will often outsource work to a third party. This doesn’t mean their services are bad, but you want to be sure they are forthright about who is doing the work. 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.
5. Are you a conservative or more aggressive accountant?
Some accountants want to write off everything they possibly can, while others take a more conservative approach. It’s important to figure out where you fall on the spectrum and find an accountant who agrees with your philosophy, Lyon says. If accountants tell you they specialize in finding red flags that could trigger audits, they may be hesitant to maximize your deductions. For example, some accountants believe taking a home office deduction might be a red flag to the IRS, Lyon says.
6. How do you bill for your services?
Some accountants charge by the hour; others bill a flat rate. If you want to take a more hands-on approach to your bookkeeping, an hourly rate might be better because you won’t have as much continuous work for an accountant. Regardless of the billing approach, be sure to get an estimate of an accountant’s likely fees. Provide a copy of your previous year’s tax returns so the accountant can familiarize himself with your business before giving a quote.
7. How do you handle working with multiple entities?
If you have more than one entity under your name, be sure the person you hire can manage them simultaneously–a skill not all accountants possess. If you own rental property as an LLC and a retail store registered as a C-corporation, for example, you’ll need an tax accountant who can coordinate and track money moving between those entities, Viera says.
Related: Your Startup’s Top 3 Most Trusted Accounting Allies
8. What can you tell me about the medical expense reimbursement plan?
This question may seem technical, but not all accountants will know about this plan, which allows you to deduct your family’s medical expenses on your return, Viera says. If the accountant you’re speaking with is unfamiliar with such plans, you should be wary because that might be a red flag that he or she isn’t well versed in deductions that could save your business money.
9. What tax program do you use?
You shouldn’t choose accountants based on the tax program they use, but it’s a good detail to ask about. QuickBooks is commonly used for small businesses, which means your information would likely be easily transferred between different accountants, Viera says. Hiring a tax accountant who uses more obscure tax software won’t affect the quality of the work, but it might make it tricky to switch accountants.
10. How often will we communicate about tax issues?
This post was last modified on November 11, 2020 8:30 AM
Of Mountains & Printing Presses The goal of this new editor is to make adding…
How to Increase Profit Margins Through Virtual CFO Services
Great Accounting Firms Share These 10 Traits which has gone far beyond the paper-pushing days…
Tax Accountant said IRS delays start of tax season for individual returns would be postponed…
Its up or out for Miami Accountants firms are faced with the dilemma of keeping…
Contadores en Miami, Gustavo A Viera CPA, explica los pasos de una auditoría, desde la…
This website uses cookies.
Leave a Comment