5 Questions to Ask Your Small Business Tax Accountant
Tax season is around the corner for America’s small businesses. Did you know that there are nearly 32 million small businesses in the United States?
This tax season, it is more important than ever to hire a professional accountant. The Internal Revenue Service (IRS) is looking for many tax changes.
Your accountant keeps you compliant with the tax code and can maximize your refund. Read on if you want to hire a small business tax accountant. Explore five questions to ask your accountant about small business taxes and filing tips.
1. Are You Credentialed?
With tax software readily available, everyone thinks they are an accountant these days. As a small business owner, however, you cannot afford to make tax filing errors.
It is crucial to hire an accountant with the right credentials. This means that they are licensed to operate in the state that you do business in.
Your tax accountant needs to be a Certified Public Accountant (CPA). This license is issued by a state Board of Accountancy after the person meets their educational requirements and passes a CPA exam.
2. Are You Experienced?
Experience is the next thing to look for. It is not ideal to hire an accountant who has only been in practice for a few years.
You are more likely to deal with errors. Also, your accountant is less experienced to handle a potential audit.
Instead, it is best to hire an accountant who has seen it all. For example, Atlantic Tax Services has been preparing tax returns since 2003.
3. Do You Provide Audit Support?
In some cases, the IRS picks up a red flag on a tax return. When this occurs, they are going to initiate an audit.
You want an accountant that is prepared to handle the IRS. They are well-equipped to provide supporting documentation and handle any questions that may arise.
4. How Do You Minimize Tax Liability?
Many tax accountants focus on maximizing a tax refund. However, cash is king for small businesses and you do not want to give Uncle Sam an interest-free loan.
Instead, the goal is to minimize tax liability. Your accountant seeks to reduce your small business taxes to the lowest amount possible. This is accomplished by claiming all appropriate deductions and adjustments to your taxable income.
5. What Documents Do You Need?
In order to support tax audits and minimize your tax liability, your accountant is going to require documentation. It is your responsibility to save all the documentation your accountant needs.
Ask your accountant what forms and documents to preserve. The best accountants will provide you with a checklist to make sure everything is collected.
Your Guide to Hiring the Best Small Business Tax Accountant
You now are ready to search for a tax accountant. These are just a few of the questions to ask a prospective accountant.
It is important to develop a good working chemistry with this professional. If enjoyed this article about hiring a small business tax accountant, check out our blog for more great content.
