Things To Consider When Choosing A Tax Accountant

Canadian Tax Strategy
Canadian Tax Strategies For Business Professionals
February 16, 2018
4 Bookkeeping Mistakes That All Startups Make And How To Avoid Them
March 8, 2018
Show all

Things To Consider When Choosing A Tax Accountant

Tax Shelter Accountants

The tax season is the busiest time for business owners. From getting all records in place to evaluating them and filing the tax returns, the phase can be daunting and frustrating. But, however taxing it may seem to you, you cannot overlook the importance of preparing for and filing your tax returns. After all, you do not want representatives from the Canadian Revenue Agency (CRA) to come knocking on your door. To make sure they don’t mess up, many small business owners hire tax shelter accountants to take care of this daunting task.

When entrepreneurs hire accountants to handle their taxes, people perceive them to be wealthy or think that their taxes are complicated. But, that’s not always the case. Tax time is a challenging period for small business owners. And, with so much already on their hand, taxation can seem time-consuming. Plus, many business owners are unaware of laws and legal formalities surrounding taxes. This can increase your chances of costly mistakes. Hiring tax shelter accountants can prevent errors that could otherwise cost you a fortune.

While this is true, it is also important to choose a reliable tax accountant for your business. Today, there are hundreds of accountants out there, who can help you with your taxes. So, how do you select the right accountant for your business? Here are some tips to help ease your search for an accountant:

Finding a Tax Accountant

Determine Your Needs

Why do you need an accountant? This is the first question you should ask yourself when you set out to find a tax accountant. There are various reasons that call for a tax accountant. Some entrepreneurs may find the process of preparing taxes stressful and time-consuming, while others want to ensure accuracy in their tax returns. The stage your business is at also affects your financial situation and taxes. For instance, if you have expanded your business, then your accounting and tax requirements will be greater. Tax laws also undergo changes almost every year. This can have a huge impact on your business and financial situation. Take some time out to identify why you need an accountant for your taxation. This will help you shortlist and choose the right accountant for your situation.

Evaluate Their Expertise

Experience cannot be undermined, as with it comes expertise, which helps you make the tax season a smooth one. It is important that you evaluate the tax accountant’s experience, especially in your field of business. This is because different tax regulations apply to different types of businesses. Typically, due to the sensitive nature of their business, accountants cannot provide samples of their work. But, booking a consultation with a tax accountant can help you assess their knowledge and expertise. You should pay attention to the questions they ask. Good accountants are interested in knowing your business and finances. This helps them provide you with personalized accounting and tax services that suit your specific needs. You can ask them about their work experience in your industry. In addition to this, you can go through their website and check reviews. This will help you assess their experience and know whether they fit into your requirements.

Ask About Services and Specialization

It is imperative to check whether the tax accountant you hire will be able to provide all services that you require. Once you get an understanding of your needs, evaluate the services they provide. If you need an accountant who can help you with payroll taxes, along with regular business tax filings, then check if the accountant provides the service. If you’re looking for someone who can help you with tax projections and financial planning, then make sure the accountant you’re selecting can perform all of this work. In addition to this, enquire about the tax issues they specialize in. Every accountant is different and they will have expertise in a particular area of taxes. Knowing this will ease the process of finding the right tax accountant.

Inquire About Costs of Services

Budget is one of the main factors that impact most business decisions, including the hiring of a tax accountant. Every entrepreneur seeks to reduce cost, and they hire an accountant who offers services at a low cost. But, that may not always be suitable. Some accountants charge a flat fee for tax return preparation and filing but will charge you for additional inquiries. Other firms may offer their services at an hourly rate or a retainer. As previously mentioned, having a good understanding of your needs will help you choose the right one. If your requirement is preparation and filing of returns, then a lower fixed fee works. But, if you are looking at a long-term requirement or want ongoing communication, then it is best to hire an accountant that charges on an hourly basis. You may also ask your professional accountant if they will agree to a different arrangement.

Check the Location and Their Availability

If you have huge accounting and tax requirements then it makes sense to hire someone who is available when you need them. Thus, location and reputation matters when choosing an accountant for your taxes. Many tax accountants work in a specific area, but cater to clients around the nation. These accountants use technology to stay connected and be available for their faraway clients. Enquire about their availability and how you can contact them in the case of need. You may also want to check with references for their reputation. You do not want someone who offers a good rate, but disappears once the work is done. This can cause a lot of troubles, especially if there are questions raised about the returns post-filing.

Considering these factors will take your search in the right direction. Having a trustworthy tax shelter accountant for your business can be highly beneficial. How? Let’s take a look at the various benefits you can reap by having a tax accountant to work with you.

Benefits of Having a Tax Shelter Accountant

Saves You from the Stressful Job

When you start a business, your priority is to maximize your reach to your audience, fulfill clients’ work, and bring in revenue. In the midst of this all, keeping a track of your expenses, storing receipts, and doing paperwork can seem time-consuming and stressing. And, if you get involved in doing taxes and accounts, then you’ll hardly be left with time for other important tasks. You definitely want to stay abreast with your business’ financial position. But, there are other ways in which you can. Hiring an accountant to handle your taxes and financial planning can take away the daunting task of preparing taxes. This leaves you with more time to strategize and focus on growth. Plus, the accountants can provide you with an evaluation of your financial reports and tax projections. Hence, you don’t have to be worried about being on top of everything.

Reduces Your Tax Liability

There are a number of deductions and tax credits that businesses can avail of to benefit from the tax season. Who better than a tax accountant to help you take advantage of these deductions and credits? Tax accountants can spot deductions, which you may have been totally unaware of. In addition to this, with a tax accountant by your side, you also do not miss any critical deadlines. Thus, you can save yourself from paying hefty fines or incurring losses. The knowledge and expertise of a tax accountant can help you reduce your tax liability. It allows you to understand how you can maximize your savings and finances.

Helps You Grow

A tax accountant is not just an expert in taxes but has a good knowledge of financial planning and related aspects. Many accounting and tax services providers offer help with financial projections and evaluation. A sound input from these professionals in the field can be highly beneficial for your business. Since they work along with you, they know your business and its financial side well. While this is true, they are also not emotionally attached to your business. Assistance and recommendations from someone who is emotionally detached from your business are quite valuable. Their valuable inputs and accurate financial projections also help you make sound decisions and strategize to take your business toward growth.

If taxes are making life difficult for you, feel free to connect with us at Altitude Accounting and we will be happy to help.

>