6 Key Inquiries to Make when Hiring a Tax Accountant
When it comes time to find a tax accountant, you want someone who can not only help you save money and prevent possible IRS trouble but also provide vital information for your business. Although we often think of accountants as number crunchers, an intelligent accountant is capable of much more than that. A practical accountant will explain to you what the figures indicate. Decide which accountant is the greatest fit for you and your company by doing comparison shopping and conducting interviews. Here are some crucial inquiries to consider when you decide.
What is your personal history with the IRS?
Experts frequently advise hiring a certified tax accountant rather than enrolled agents since CPAs must meet more stringent certification standards. EAs are certified by the federal government expressly to handle taxes and are frequently former IRS agents with substantial expertise in dealing with audits. CPAs are state-certified and have training in areas like financial planning and bookkeeping. They spent time within the beast's gut.
A CPA, on the other hand, is more likely to know more complex financial planning difficulties. Overall, it is essential to concentrate on how your accountant's experience is relevant to your needs in addition to qualifications.
What types of customers do you deal with?
Make sure your accountant is familiar with the industry you are in. Just as a construction company must deal with concerns relating to contract workers and a real estate development firm will have specific criteria about how income is reported, a restaurant will have specific standards to follow regarding pay and tips. You require an accountant who is familiar with the ins and outs of the sector and has experience working with companies similar to yours.
Who will carry out the task?
Accountants frequently delegate tasks to outside parties. This doesn't necessarily imply that their services are subpar, but you should ensure they are honest about who performs the work. If a third party is providing the services, speaking with them directly about your services may be challenging.
Are you accessible all year long?
Some accounting firms close their doors after the tax season only to reopen the following tax season. However, you will require assistance throughout the year if you own a small business. If a problem arises you should immediately take care of it rather than wait until tax time. Therefore this is a crucial inquiry to make before hiring tax accounting services.
How do you manage to collaborate with several organizations?
If you own multiple legal entities, ensure the person you employ can manage them all at once. This is a skill that not all accountants have. You will require a seasoned accounting company like Evolved LLC that can coordinate and track money traveling between such businesses.
How do you bill your services?
While some accountants bill by the hour, others use flat fees. An hourly rate can be preferable if you want a more hands-on approach to bookkeeping because an accountant won't have as much ongoing work. Give the accountant a copy of your prior year's tax records to familiarize them with your company before providing a quote.