If you enjoy preparing tax forms and have enough time study tax laws and comprehend them, you can prepare your own tax returns without any problem. But in reality, it is not the easiest DIY route to take. In fact, tax laws constantly change, and the IRS will penalize your business even for the smallest tax mistake.
Hence, the DIY route could be a costly mistake for most of the small and startup businesses out there. That’s where a professional tax preparation service comes in handy. Here is what you need to consider when choosing a professional tax preparation service on the market.
Who you should choose as the tax preparer depends on the complexity of your tax situation – whether it is your personal taxes or business taxes. The tax knowledge of the service provider is extremely important in this regard. The first thing you need to ask the professional is what qualifications he or she holds.
In fact, the CPA is the gold standard in this regard. But not all CPAs offer tax preparation services. The size of the CPA firm won’t have much to do with the quality of work offered by them. But the larger the firm is, the higher the price is going to be. There are many excellent one-CPA and two-CPA offices on the market. If you operate a small or startup
business, these are the best options for your business.
The state board of accountancy will license the CPAs. Hence, you should make sure the candidate you choose can work in the state you need tax expertise. In fact, they should hold a current active license to practice in that particular state.
The experience of the tax preparer goes a long way in providing a high-quality service to the clients. It is essential to ask the potential candidate how many business returns they perform each year. A good preparer should do around 100 total returns a year. In fact, a highly reputed and full-time tax preparer will do between 300-500 returns a year.
The right tax preparer should be a continuous learner. Tax laws change every year. There are hundreds of new pieces of legislation added to the law each year. The potential candidate should have completed a tax update course within the last six months. The fees of the service may depend on how complex your tax situation is.
Most preparers would charge a flat fee while there some others who charge by the hour. You should decide on the best fee structure before hiring the right tax preparer for your business. These are important things to look for when hiring the best tax preparation service on the market.
In conclusion, hiring the right tax preparation service should be done with utmost care. There are many important things to consider when doing so. Vitale & Associates offers high-quality tax preparation services to all small and medium scale businesses on the market. Contact them right now for all your tax preparation services.