6 Questions to Ask Before Hiring a Tax Accountant
Looking for a tax accountant can be quite overwhelming – there are so many, and they do so many different things! But keep in mind, accountants should not be avoided – they are very useful for a number of reasons, not the least of which is that they can help you with your taxes.
Accountants are useful in helping you to see where you could save money, and certain types can be helpful in determining where it is best to steer your business finances.
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What kinds of clients do you work with?
This question is important because you need to be sure that you are working with an accountant who understands the type of business you run, and your own individual financial needs.
The rules which govern different circumstances and business niches vary in their own unique ways, and an accountant proficient in one field may not be so proficient when it comes to your own.
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Are you available year round?
It’s important to ask when accountants will be available, especially if you are thinking of using one throughout the year. Many accountants only open when it comes time to deal with taxes, and close after that (lucky them).
This is particularly important when running a small business, as you will likely need help year-round – make sure you ask at your initial meeting.
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Who will be doing the work?
Accountants often outsource a lot of their work to another party – if you have concerns about security, then you should make sure to ask the accountant if that is one of their practices.
Aside from the security issues, there is also a question of transparency – you want to know who is actually doing the necessary work on your accounts and finances.
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Are you a conservative or more aggressive accountant?
Accountants vary in their approach to finances and taxation. Some accountants stick to the bare minimum of expenses, and what can be claimed, while others take the approach that every single expense which could plausibly be claimed, should be.
It depends on your own point of view which one you favour (and as long as you aren’t breaking any rules, there shouldn’t be any problems), but you should make sure you know which path your accountant favours, to save any unpleasant surprises.
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How do you bill for your services?
This is definitely a question you need to ask your accountant before you both get settled into a working relationship!
Payment varies by accountant to accountant – some like monthly payments, some weekly; some choose a flat rate depending on the work, some have an hourly rate. It entirely depends on the accountant.
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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 accountant who can coordinate and track money moving between those entities, Kerstetter says.
This is a very particular question, but it is worth asking: if you have multiple business interests, ask your accountant if you can use him or her for all of them simultaneously.
This goes back to the first point about an accountant’s skillset – not everyone has the ability to manage several different entities at once, and it is important to know this as soon as possible.
If all else fails, you can always use accounting software from https://www.atkinsonsca.co.uk/xero-accountants-london/.
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Category: Business
