Not all good tax preparers or accountants are CPAs, but it is crucial to find a tax specialist who is competent and knowledgeable. Here are some tips on how to hire a tax consultant:
- WHO? It is important to ask around. Ask for recommendations from Chamber of commerce friends, professional associates, church members or small business owners in the community. Local Crown Financial Ministries instructor may also give advice or a referral to a good tax specialist in the area.
- WHAT? what experience do they have with individual tax returns or with small business tax law (if there is a home-based business involved)? Is he or she a CPA? If som is the license current? Do the non-CPAs maintain their own DBA and small business licenses?
- Another WHAT? question to consider is : What is a fair price? It could cost anywhere from $150 to $500 for a family return, which would include preparation, Schedule C, state taxes and advice on all other kind of tax issues.
- WHEN? Don’t go to a seasonal tax specialist (who does it only during tax time); pick a tax consultant who does taxes all year round. while some of these tax specialists do a good job,many others are only nominally trained and disappear after April 15. it is hard to find a good seasonal tax preparer with a proven track record without a referral.
- WHERE? A good tax preparation company can be found using Best Bureau resource online. Here, the family can research the potential accounting office. Is there’s a home based business involved, go to the local SBA office (Small Business Association) to get advice on finding a local CPA or tax adviser.
- HOW? A lot can be determined through a personal interview. If they don’t talk on the phone, or the answers are vague, they won’t give references or report how many small business clients they have – then find another tax preparation company. It is reasonable to expect a tax professional to help reduce tax liability; know how much to invest in Roth IRA, traditional IRA or SEP IRA; restructure a small business; advise on contract labor employees and home office deductions; and help with other changes to make tax deductions. Expect your tax adviser to answer specific questions. Tax preparers are being paid to know why they put in that number and what it means.