Handling your daily transactions can be under the responsibilities of an office manager. And the recording and organizing of files can be done by a bookkeeper. However, when it comes to the management of your taxes, a tax accountant is still the best person to hire.
Business experts and CPAs (Certified Public Accountants) agree that a good partnership will make the tax application flow easier and more efficient for both parties. Here are five tips to help you work well with your tax accountant.
#1 Find the right candidate for your business.
Before we decide on a life or business partner, we think about it carefully first. Right? It is because these partnerships play a crucial role in our daily life. It goes the same for choosing your tax accountant. They may work with you on a yearly basis, but their role in your business is also very essential. Why? There are always changes in tax laws, regulations, and fees. So, having a trustworthy and competent accountant is a must.
Here are five points to consider when finding your partner CPA.
Every CPA must have excellent credentials. But since you want an experienced person with a vast understanding of how tax codes work, you will want to find a seasoned tax accountant. On average, you may want to find a tax accountant with about 15 years of work experience. Their years of work will allow you to have better and faster tax returns.
Accountancy has a wide range of areas. It can include business accounting, government codes, forensic accounting, and tax preparation. For your yearly tax preparation, choose a tax accountant. They will be able to prepare your taxes for the next coming years, which will allow you to gain the best returns and also accurately do a business forecast.
However, if your business is experiencing any tax investigation with the IRS or if you want to understand your taxable estates, you will want to hire a tax attorney in Las Vegas.
While you are assessing the capabilities of your candidate, make sure to do verification if their credentials and license are valid. Your tax accountant should be a CPA with a proper PTIN (Preparer Tax Identification Number) as mandated by the IRS. To confirm its validity, you can get in touch with the IRS Return Preparer Office Directory.
Other than the PTIN, your candidate tax accountant or even a tax attorney in Las Vegas must have state registration. Their license (PTIN) should be checked and validated by the state’s Board of Accountancy. Most states, including Nevada, have CPA databases, where you can find your candidate’s accountant license status, validity dates, etc.
A tax accountant’s fees may have different types of basis. Fees can be per hour, the complexity of company taxes, or a flat rate. Make sure to discuss all the inclusions, exclusion, and other terms and conditions to avoid confusion and conflict.
Ask around friends or business acquaintances for recommendations for a tax accountant. Or better yet, find a reputable accounting firm that can provide you experts for your requirements.
#2 Keep open communication with your tax account year-round.
Make sure that you can easily get in touch with your tax accountant throughout the year. While his or her services only come in during tax filing, you should be able to contact him or her easily if needed. At least the tax accountant should also be regularly checking your tax reports even if it is not tax season.
#3 Ask and verify.
Be confident to ask questions and verify items that you do not understand. Other than tax preparation and filing, your tax accountant must be ready to lend you a hand and answer your inquiries on your business’ financial status and the impact of the current tax conditions on it. He or she must also discuss tax planning, cost-efficient tactics to boost your company’s revenue.
Your full understanding of how your yearly taxes affect your revenue and budget will help you make better business decisions in the coming years.
#4 Utilize new technology.
Keep in mind that we are in the new era of communication where everything can happen with a click of a button. Utilize this new technology to share your financial data through cloud-based software. These online applications are secure and effective in sending information to and from your tax accountant. You can also search for and utilize other financial tools that you think will be beneficial for your business financials. In any case, work hand in hand with your tax accountant on which software will work best for both of you.
#5 Give constructive feedback.
Like any other relationship, especially for businesses, you must foster healthy communication with your tax accountant. Be proactive in providing constructive feedback when necessary. Discuss misunderstandings in a calm and respectful manner as aggressive approaches may not end in successful outcomes.
CPAs share that they look forward to providing service to clients who put their effort into the assessment and management of their financial situation. It will also be a healthy relationship if you let your tax accountant know any small or large concerns, as these may greatly affect your tax returns during filing and computation of your returns.
A great working relationship between a client (you) and the tax accountant is necessary to have a successful tax preparation and filing. As a result, you will be able to have better tax returns and an accurate forecast of your future computations. A harmonious working environment will also eliminate confusion and conflicts, which are detrimental to any kind of business.
Therefore, take your time to choose your tax accountant. Find a reputable one, be it a CPA or a tax attorney in Las Vegas. Constantly communicate and feel free to raise any concern to him or her. Moreover, make use of available cloud-based software to foster fast and hassle-free communication and data sharing. Lastly, do not be afraid to provide constructive feedback. In the end, what you want is a completed process, which will ultimately lead your business to success.
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