If you are a new small business owner or an experienced owner looking for a new tax advisor, you want to take some time to select the right advisor. A tax preparer can be helpful, but most small businesses need a tax consultant, not someone trained in completing tax forms. You should look for a firm with the right people, the right industry expertise, and a track record in small business taxes.
Certifications and Training
Certifications and training matter more than just about anything else. Do they employ Certified Public Accountants, enrolled agents, or attorneys specializing in business taxes? All of these professionals are qualified to handle your taxes and all are authorized to represent you to the IRS.
Experience and Expertise
Experience counts almost as much as credentials. Ideally, your consultant will have experience with your specific industry versus general business experience. Even if you are self-employed, you also want a tax consultant who has experience with business taxes, not personal taxes.
A capable and experienced firm will be able to share testimonials and will be able to answer questions about how they advise their clients. If a professional tax consultant lacks experience in your specific business, they should be willing to offer a referral to another local professional. Ask for success stories or case studies. Ideally, the firm has experience working with businesses like yours and dealing with tax issues particular to your business. You might also look for referrals from friends in the local business community too.
Do they have experience advising business owners like you on strategies to minimize your taxes without triggering an audit? Small businesses are audited sometimes, and you don’t want to face this process without a seasoned tax expert on your side. A small business tax consultant Lancaster TX will also understand the local business environment. This depth of knowledge can be helpful in your business planning.