Finding the Right Tax Professional for You and Why It Matters

How to select the right tax professional

Having the right tax professional on your team is a key ingredient to reducing stress and encouraging a healthy, realistic overview of your financial situation. With the right preparer on your team, you can enter the tax year with confidence and leave feeling empowered with more knowledge and a revised plan for the upcoming year.

Here's what you should look for in a tax professional and why:

Comfort:

The most important factor in the equation is your level of comfort. If you feel reserved, then you should keep looking. Being open and honest with your professional can reveal possible deductions, opportunities for financial planning and consistent revisions to your future plans.

Credentials:

Your preparer should hold the required license and be in good standing with the IRS before filing your return. There are several credentials that qualify someone to legally prepare and file a return on your behalf. EA is the highest designation awarded to tax professionals by the IRS. CPAs are state certified and have at least a Bachelor's in Accounting. Attorneys may also specialize in tax preparation. Finally, there are also Annual Filing Season preparers who pass a minimum of continued education in order to prepare returns.

EA and CPA require the most continued education, which means your preparer is likely up to date on current tax laws. You should also look for a preparer who has specialized in or had experience with the field you work in. For example, if you're a small business owner, it's crucial that you work with a preparer who understands small business tax laws, credits, deductions, adjustments and planning strategies in order to get the results you deserve.‍

Integrity & Honesty:

Look for a professional with integrity. Someone who continuously fights for you by avoiding red flags, constantly applies new tax laws and strategies to your unique situation and informs you about the right practices and procedures.

‍Multiple Services:

When you have complex preparation needs, you could benefit from a professional who can bundle your services within the firm. Having the same firm clean your books and file quarterly reports, year-end paperwork and tax returns not only creates more accuracy and less confusion but guarantees increased tax savings, as your preparer is able to see the big picture instead of just a small year-end glimpse.