Top 5 Factors to Consider When Choosing a Tax Advisor | Tax season is a strenuous period for most people. This is because filing tax returns, personal or business, can be quite complex especially if you have multiple streams of income. It’s even possible to get into trouble with the law inadvertently because of inappropriate filing.
You should turn to an expert with tax preparation experience to be on the safe side. However, choosing a tax advisor also requires prudence. You need to work with someone who’ll not only protect you from the law but also minimize the tax burden.
These are the top factors you should consider when looking at your tax advisor options.
- Qualification and Certification
The main reason for looking for an advisor is access to professional advice. Proper certification and qualification are the only guarantors that a person can offer you this service. Certifications are also a determinant of the level of quality of service that an advisor can offer.
If you ignore qualifications, then chances are high that you’ll be a victim of fraud. Some syndicates pose as professional tax advisors waiting to scam you. These syndicates look professional on the surface to make it easier for them to dupe people.
Avoid entrapping yourself in their con schemes by asking for their certifications.
- Communication Skills
The tax system uses jargon that’s hard for a layman to grasp. Besides, several factors come into play during the determination of your taxes. For example the accounting policies, the financial components of your business, and other legal considerations.
You need tax advisors who can read and understand this information for themselves. Then they should interpret the same information to you in a language that you can understand. If there is a communication barrier between you and an advisor, you’ll make costly mistakes while filing the returns.
- Tax Advisor Costs
The service fee should be an integral component for selecting the advisors to work for you. Service fees have a direct impact on your budget. If the fees are unreasonably high, you’ll have to cut spending on some of your operations to retain the clients.
That’s bad for your business’s growth. Don’t be overwhelmed with joy when you find advisors that charge exceptionally low service fees. They’ll shortchange you by providing poor quality services.
Explore what each player in the market charges for the same service. You’ll be in a better position to find the right advisors at a manageable cost.
- Level of Trustworthiness
Tax advisors will have access to sensitive information from your business. A high level of confidentiality from these advisors is what will avert the leaking of this information. So how do you gauge their trustworthiness in advance?
Start by reading online reviews from people they’ve worked with in the past. Any complaints relating to privacy suffices as a red flag.
The tax season is a hectic period since many businesses are scrambling for the services of advisors. Work with advisors who’ll be available whenever you need them. It’s through this availability that you’ll meet your tax deadlines of time.
Choosing a Tax Advisor
Pay attention to the above qualities when choosing a tax advisor. This will help you select an advisor who’ll provide prudent guidance to your operations at all times. Remaining tax compliant is very important if you want to be a going concern.
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