Tax Season is Coming: 5 Steps for Finding the Right Accountant
Whether you are filing personal income taxes or taxes for your business, finding a qualified tax professional is important. If you are looking for someone to file your taxes this tax season, here are five steps to help find the right accountant for your needs.
1: Find Accountants Near You
Many online resources can help you compile a list of local accountants. Through websites like this, you can search specifically for accountants near you who specialize in personal or business taxes. A local accountant has the advantage of understanding state and municipal tax codes, as well as a familiarity with commonly available tax credits taken in your area. With a local accountant, you will be able to hand deliver any documents and paperwork that they need, and know that you can sit down with them when you need for advice throughout the year. Complicated tax laws are probably easier to explain in person than they would be via email or over the phone.
2: Look for Qualifications
Since the IRS does not have regulations on professional tax preparers, make sure your accountant has desirable qualifications. Certified Professional Accountants, or CPAs, often have extensive training in specialized areas of accounting but might not have specialized training in tax filing. Ask your accountant what credentials he/she has, and look for designations such as ‘Enrolled Agent’. Especially if you will be billed per hour of work that your accountant puts into your taxes, make sure you find someone with experience in tax filing, who can file your taxes quickly and efficiently.
3: Select an Accountant With Experience
Credentials aren’t everything. Find out how long your accountant has been professionally filing income taxes. You might be able to save money in the short term by hiring an inexperienced accountant, but by doing so, you may be missing out deductions, credits, and rules that an inexperienced accountant wouldn’t catch. More than just being able to get the most for you on your tax return, an experienced accountant will also be able to guide you through the process of filing your axes and give you valuable advice in the process. Look for an honest accountant who can help you take care of this year’s taxes, while planning for the upcoming year. The longer an accountant has been practicing, the better idea they might have of potential changes in tax code, and what could potentially trigger an audit from the IRS.
4: Use an Accountant with Integrity
Ask if your prospective accountant has ever been on probation with the IRS for breaking their strict code of ethics. Probation can occur if a tax preparer has knowingly defrauded the IRS or a client. If an accountant has been on probation with the IRS, proceed with caution. There are so many available accountants that you shouldn’t need to deal with anyone who might be dishonest. Look into other accreditation organizations that might be able to vouch for the integrity of your accountant, and refuse to give your business to a dishonest accountant.
5: Ask Questions
Once you have narrowed down your list of possible accountants, contact each office or visit each website for valuable information. Find out how each accountant charges to prepare taxes. If they charge based on the amount of your refund, do not consider giving them business. There should be a set price per form or per hour. If you have specific tax needs, find out if your potential accountant is prepared to help you. For instance, does he or she have experience with trusts, estates or depreciation? Most tax preparers can handle a basic 1040, but additional tax items might pose an issue to an inexperienced accountant. Also, verify each possible accountant’s availability. You will want someone who can answer questions year round. A good tax accountant will do more than just file your taxes. He or she will provide tax planning advice and support in the event of an audit.
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Category: Taxes
