Unless you know a lot about accounting, it is very likely that your company’s accounts are prepared by an internal accounting department or by an external professional. For small and medium-sized businesses, the latter option may be more attractive because hiring a dedicated permanent tax accountant is more expensive and sometimes unnecessary for a small business. However, whether you hire a tax accountant in your business or outsource to an independent tax professional, choosing the right accountant for your business is critical. For example, when it comes to your annual tax return, it may be prepared by someone else, but it is ultimately you who is legally responsible for any errors in it.
So you want to make sure you find someone who has a meticulous eye for detail and has experience working in a company of a similar size to yours. An accountant who tends to work for small businesses, for example, might do excellent small business work, but may not be able to handle payroll for her 300 employees or keep accurate track of her 10,000 monthly sales. Anyone can call himself a tax preparer, but what he needs is a true professional. There are several types of counters, so make sure you know which one is right for you.
When interviewing or looking for accountants, find out if they typically do tasks like preparing tax returns, if that’s what you need them to do. Certain accountants may specialize in, say, estate planning or financial forecasting, and while they may be highly qualified, they are more likely to make mistakes than a less qualified accountant who has prepared hundreds of tax returns. There are walk-in tax preparation companies that offer very low rates to prepare your tax return. However, it is best to avoid these companies whenever possible and hire a tax accountant, as these companies use temporary employees with only basic training to complete the most tax returns in the shortest amount of time. Therefore, errors are very likely and very common.
A good tax accountant will cost more, but your tax return will receive more attention and focus. Using a cheap tax filing service now only to receive a large fine later will not save you money. Once you’ve decided on the type of tax accountant you need, you still have to find it. If you know a friend who has used an accountant in the past, ask for recommendations. Chances are, if he did a good job for your friend, he will do a good job for you too. However, if you don’t know anyone who has used a tax accountant in the past, you can still find one online on sites like LinkedIn, directories, or a website that is there specifically to match businesses with qualified accountants.
It’s important that you don’t rush into choosing a tax accountant, and instead take some time to ask them and find out if they have the qualifications and experience you need. Check his name online or the name of the company he works for if he is not self-employed. Immediately ignore anyone you can find complaints about. Ask about their qualifications and if they belong to any professional accounting organizations. It would also be a good idea to check references, especially from companies similar to yours, to find out if the person is trustworthy and has produced error-free returns. Other questions to ask include finding out your rates and how they are calculated, such as per hour or a single price per tax return.
The tax accountant may also charge extra for things like phone calls, so make sure you know exactly what you’ll be paying to avoid any nasty surprises down the road. When choosing a tax accountant, be demanding as you need to guarantee a good service. Ask around and find the best rate, but don’t pick the wrong person just because they’re cheap. A real estate accountant, for example, is not the right person to do your taxes, just as a tax accountant may not be the right choice for estate planning. You can find many freelance accountants in the real world or online, so it shouldn’t be difficult to find the perfect person for the job.
