Once a year, the focus is on taxes. And if you’re like your typical small business owner, you’re scared of dealing with all of the paperwork associated with filing taxes.
If you’re a small business owner (or your sideline has grown into a full-fledged small business), it may be time to find a tax advisor to help you with your business.
Working with Block Advisors, we’ll break down what you need to know about finding a tax professional for your business. Block Advisors is H&R Block’s small business service focused on helping small business owners with the accounting and tax assistance they need. Make an appointment here to get started >>
Now, let’s look at three tips to help you hire the right tax professional for your small business.
Decide on the type of tax professional you need
When tax time comes, small business owners may feel the need to hire tax assistance. However, it is important to find the right person to keep your business running more smoothly. These are the three main types of tax professionals your small business might need.
Record keeping folks are arguably some of the most important people to any small business. You track expenses, organize receipts and track inflows to the company.
Because accounting does not require a special license, many accountants have cheap hourly rates. While accountants are often not the ones to prepare your tax returns, they make tax filing a lot easier.
You can do the bookkeeping yourself by hand or with software. But it can get boring and even difficult to get right when things get more complicated.
When you think you’re ready to outsource, check out Block Advisors. They offer accounting services as part of their package to help small businesses.
Tax advisors are finance professionals who can help small business owners with strategic tax measures. Advisors can also help business owners who are struggling with the IRS.
Business owners looking to conduct strategic tax planning may want to work with an industry auditor (CPA). If you are a member of a professional association, you may want to ask colleagues for recommendations. Entrepreneurs can also contact a local chamber of commerce to find local professionals.
Before working with a CPA, be sure to check your credentials on a website like CPAVerify.org. It is also common practice to interview a CPA before being hired. Ask them questions about their billing, specialties, and whether they’ve helped customers like you. Business owners who need to repay taxes may need an advisor who is empowered to represent them before this IRS. A registered agent, CPA, and attorney can all practice before the IRS.
Business owners may want to consider an attorney rather than a CPA to help them out. Tax attorneys often have a special degree that leads to an LL.M. in taxation. They can help companies with complex tax problems. You can also provide a representation if a company is having trouble keeping track of payments to the IRS.
The American Bar Association has the ability to find a lawyer. You can also get personal references for tax lawyers or use websites like Nolo.com to find qualified lawyers. It is very important to review and conduct solicitation of any attorney’s credentials before hiring them for your company.
Tax advisors are usually the most expensive tax professionals. It is important to clarify the billing structure (including minimum billing minima) before using the services. Also, you usually want to work with a tax advisor well before tax season (think about daylight saving time) so you can make plans before the year ends.
Block Advisors has experienced tax professionals qualified to represent taxpayers before the IRS so you can get help with an IRS notice year round.
A tax advisor with a tax identification number (PTIN) can prepare and file your taxes. This includes tax advisors who are enrolled agents (EA) and CPAs, as well as tax professionals who have been trained to prepare tax returns. You can file taxes for your business.
You want to choose someone who has the training and expertise for businesses like yours. Block Advisors has seasoned tax professionals with an average of 10 years experience who can help you understand the best ways to plan your taxes year round. Large companies like Block Advisors offer a variety of filing options, including virtual filing options for small business owners.
If you’re looking for someone local, tap your professional network for recommendations. Many small accounting firms specialize in tax preparation for small to medium-sized businesses. Block Advisors has professionals across the country to help.
What is special about using a single service like Block Advisors for all of your needs is that you can make sure everything from bookkeeping to planning to tax filing is done correctly.
Choose the model that is right for your business
In most cases, small business owners do not need a full-time tax advisor to meet their business needs. However, a company that needs to do payroll, invoices, and record keeping may choose to hire a full- or part-time accountant.
Other services such as tax advice and tax returns do not usually require full-time employees. Small business owners can find local (or online) professionals to help their businesses as needed.
With Block Advisors, you can use their services for some or all of your needs. Check out Block Advisors here >>
Consider collecting taxes yourself (with tech support)
Small business owners can absolutely choose to collect taxes themselves. It’s especially easy if you don’t have to manage wage taxes and withholding taxes yourself. Tax filing services like Block Advisors also make tax filing easy for small business owners with unlimited expert assistance when you need it.
If you get stuck, Block Advisors has a variety of options that can help – from screen sharing to on-demand, it’s easy to get help from a professional.
However, business owners in need of tax advice may decide that hiring an expert is worth the money. Tax planning (or tax defense) can save a company a lot of money in the long run. If you have a growing business and aren’t taking steps to save taxes, advice can be a worthwhile investment.
Is It Time For You To Hire A Tax Professional For Your Business?
A tax professional can cut the hassle and help you increase your profitability. Before you hire a tax advisor, however, you should consider what role they should play in your company. If you weigh your needs carefully, you are more likely to find the tax advisor to help your business grow.
A good place to start is by talking to the professionals at Block Advisors. With years of experience and the support of a nationally known tax authority, you can get the help you need for your company. C.You can check out Block Advisors here.