Tax Accountant
What Is A Tax Accountant
Accounting methods that focus on taxes rather than the appearance of public financial statements. Tax accounting is governed by the Internal Revenue Code which dictates the specific rules that companies and individuals must follow when preparing their tax returns. Tax principles often differ from Generally Accepted Accounting Principles.
How Can A Tax Accountant Help With My Small Business?
An accountant can save you time and clear up much of the confusion you experience when it comes to managing your finances and taxes, but a trusted accountant can provide other benefits, too.
- Act as a Trusted Advisor – More than just a tax preparer, an accountant can become a trusted advisor to your small business, helping you manage cash flow, plan for growth, assess risk, and keep your books in order.
- Help Balance Business and Personal Needs – Many small businesses, particularly sole proprietors and startups, find that their business and personal finances are closely linked. A good accountant can help you make sound judgments beneficial to both.
How Do I Hire A Good Tax Accountant?
Here is a list of interview questions that should allow you to help find a qualified CPA who can successfully help you sustain and grow your business:
- What are your credentials?
- What services do you offer?
- What areas of tax and accounting do you specialize in?
- What is your background and do you personally own real estate?
- How would I be able to communicate with you? Can I get questions answered by email?
- Given my circumstances, what business structure(s) do you recommend? Why?
- Can you register the business structures for us?
- How can you help in the various phases of real estate investing (acquisition through sale)?
- Do you specialize in tax strategy? Specifically geared towards real estate?
- How aggressive will you be in helping us keep as much money as possible?
- What tax strategies/issues should I be aware of upfront?
- How often would you suggest we meet to review our progress/plan?
- Do you do tax preparation?
- What software do you use (and expect me to use) to do our accounting?
- Can you help me find other team members (attorney, insurance agents, real estate agents, etc)?
- What is your schedule of fees?
- Do you have references?
Should I Hire A Tax Accountant To File My Taxes?
US tax code is incredibly complicated, with about 3,400 tax law changes since 2000, and major changes in 45 tax laws in the past 48 years, according to MSN. So even if you have great financial acumen or are very interested in personal finance, the more complicated your return is, the more you’ll probably need a professional. Some signs this applies to you:
- You’re self-employed, have freelance income, own a small business, or have a hobby that you make money from.
- You own real estate or are a landlord.
- You own investments that have capital gains and dividends.
Making a mistake on your return can cost you a ton in interest and penalties. Although you shouldn’t be very fearful of getting audited by the IRS, having your taxes prepared by a pro who’s trained in the tax code can give you peace of mind.