8 Tips to Find the Best Tax Advisor Near You
If your search is bombarded with “tax planning near me” searches to no avail, then it is time you take matters into your hands to find the best tax advisor.
Finding a not-just-good-but-great tax counsel is one of the most critical things for anyone, be it a business owner or a regular employee, to protect their wealth because the correct advisor can save a business owner millions of dollars throughout their career.
While most companies and individuals meet with a tax advisor once or twice a year, outstanding tax consultants meet with clients regularly to discuss goals and strategies. They are enthusiastic about both the tax laws and the future of their clients.
Here are eight guidelines for identifying the right tax advisor to work with.
1. Choose the best type of advisor
CPAs, or Certified Public Accountants, are always the most outstanding tax professionals. Most business owners should use a CPA because these specialists are the most knowledgeable and passionate about lowering taxes. The second option is to hire an enrolled agent, and the third option is to hire a mass production company.
An enrolled agent may be sufficient for small enterprises. Never utilize a mass production company or do your taxes if you are a serious business owner or an investor.
2. Look for experience
Your tax advisor’s education and years of experience can bring a massive difference to your long-term tax savings. With knowledge not being equal to experience, you must choose an advisor with experience, years of expertise, and the proper knowledge to help you make correct tax-related decisions.
3. Check for credentials
A Preparer Tax Identification Number is easily available; expertise hence, takes it a notch up and hires a credentialed preparer, such as a CPA, licensed attorney, enrolled agent (EA), or someone who has completed the IRS’ Annual Filing Season program. All of these qualifications necessitate different levels of study, tests, and continual education. As a result, you may rest sure that your representative is well-versed in his or her field.
4. Schedule an interview
Bring a duplicate of your current tax return invoice with you to the meeting with your possible accountant. One of the best methods for a tax professional to assess your position and offer you an approximate remuneration is to review your most recent return.
Prepare to tell your potential accountant about any significant life changes you’ve had in the last year, such as getting married or divorced, investing in property, or starting a business. Here are a few critical questions you can ask your potential tax advisor:
- How long have you been doing tax preparation?
If your tax return is pretty straightforward, someone with only a few years of experience should be able to handle it. If your return is intricate, though, you may wish to hire someone with more experience.
- Do you have any areas of expertise?
If you have specialized requirements — for example, if you operate a small business or a rental property, or if you have overseas investments — you should engage with a professional specializing in serving clients like you.
- Is it possible to contact you outside of tax season?
During tax season, some tax preparers open up shop, only to vanish shortly after that. A seasonal tax preparer won’t be much assistance if something goes wrong after you submit your return or need help planning next year. Look for someone available all year.
- Who will be in charge of preparing my return?
If you’re meeting with an accountant who works for a company, the individual you meet with may not be the one who prepares your tax return; instead, they may send it off to a less-experienced associate and evaluate their work. While this will help you save money, it’s essential to know who’s doing the work.
5. Choose someone who thinks differently
Although most accountants think in a single direction, a superior accountant thinks of inventive (and legal) ways to save their client’s taxpayer’s money by utilizing the law. Unsophisticated accountants would advise you to defer taxes in an IRA or 401K and pay expenses in advance by the end of the year.
The competent accountant will work with you for months to design a long-term tax strategy that will result in long-term tax savings.
6. Hire an advisor who asks questions
It is a red indicator if you have to ask all of the questions at the initial interview. Instead, look for a tax counselor who will ask you more questions about your long-term financial objectives and objectives. Only a thorough analysis by a tax specialist can result in significant tax savings.
7. Compare costs
Tax preparers frequently charge a predetermined fee for each form and schedule required in your return or a minimum payment plus cost based on the complexity of your return.
It’s a red sign if a tax preparer bases their fee on the size of your refund or claims to be able to obtain you a higher rebate.
However, the cost is an important consideration, however, do not choose solely based on prices and settle for a cheap alternative that would just cost you more money in the long run.
8. For long term gains, it is imperative to invest in a good advisor
As a business owner or individual, one of the most critical decisions you will make is to choose a good tax counsel. Look for a CPA interested in helping you understand the requirements and lowering your risks of being audited. The tax code gives you a lot of leeway regarding running your business and organizing your transactions. In the end, locate an excellent tax counsel who understands the tax legislation and how to save you millions in the long run.
If you can’t find the right tax advisor in your area with whom you feel comfortable, consider looking outside your area. Though many people prefer face-to-face encounters, you aren’t restricted to just local CPAs and tax consultants.
But for the sake of effective communication and transparency purposes, finding one near you is the best option. If you are looking for a good tax advisor in Louisville or Jeffersonville, then strategic services provided by Strothman+Cocan be considered. To know more, head to their website to book an appointment to get a clear glimpse of their services.