5 Tips to Help You Find the Best Tax Consultant

Taxes can seem like a messy business, but with the right tax consultant to help you out, it’ll make sense in no time while saving you money and stress.

Though taxes were introduced in the U.S. a few centuries ago, taxation has been around for millennia. As cited by several historical sources, organized taxation was present in Egypt at about 3000 B.C. where one-fifth of all grain harvests were collected by the Pharaoh’s commissioners as tax.

Taxes are an important factor in driving the country forward. They pay the salaries of civil servants, fund city development, and help in the preservation of natural resources. However, as the world has evolved over the years, so have the types of taxes.

Now, individuals and corporations pay a plethora of taxes, and the system is complicated, making compliance a nightmare. As a business owner, staying on top of your taxes is essential not just because it’s your civic duty, but also because it can result in hefty fines if filed incorrectly. But there is a silver lining: when taxes are filed correctly, you can save money down the line.

The Internal Revenue Service (IRS) indicates that two-thirds of compliance costs are paid by businesses that earn revenues below $1 million. Therefore, it is essential to hire a tax consultant to help you lower your compliance costs. Here is what to consider when looking for a tax consultant or advisor.

Credentials and Experience

When it comes to taxes, there should be no compromise in education and experience. A tax consultant who has an education in tax laws and has been in the industry for years will be able to help you identify areas where you qualify for tax breaks. Also, with an experienced IRS tax attorney Houston, you can be confident that your taxes filed will be accurate.

Passion

Most people hire a tax advisor because the filing process is cumbersome. Therefore, in your search for a tax professional, only hire one that is passionate about doing taxes. You want someone who enjoys reducing taxes instead of one who views filing taxes as a job. Such passion increases their likelihood and desire to find potential tax breaks.

Similar Clients

Depending on the industry and type of business you run, different companies are required to pay varying taxes. As such, you should find a tax consultant who handles businesses similar to yours. This will ensure they can offer the specific tax information your business needs.

Questions and Long Term View

It is important to ask your tax advisor questions to ascertain their suitability to handle your needs. However, it is also just as important that they ask you questions, too. To ensure that they are able to save you as much money as possible, they need to dig a little deeper. This means asking you questions about the business and future plans. It is only by analyzing and understanding your business well that your tax advisor will able to get you major tax savings.

Many businesses hire tax advisors once or twice a year. For long term benefits and savings, it is better to have a long term and ongoing relationship with your IRS tax attorney. A tax consultant who asks you questions and goes the extra mile to learn the finer details about your company is perfect for such a role.

Know Your Needs

Performing an in-house assessment is arguably the most integral part of finding a suitable tax advisor. Before you set out to look for one, assess your business needs and goals, including your present goals and long term needs.

It is only with such information that you will be able to know what to expect from a tax attorney. At times, measures that may save you money in the present tax season will cost you money. With precise details, it will be easier for the consultant to advise you accordingly.

Bottom-Line

For most businesses, the tax season is stressful. However, visionary entrepreneurs hire a tax consultant because they know their time and energy are better off spent in other areas of the business. A tax advisor will make the filing process simpler and error-free and, more importantly, save you money that can grow your business.