Tax planning and filing are two things that many people do not enjoy doing. While a lot of people can certainly file their taxes themselves, not many can efficiently plan their taxes to fully maximize their deductibles and pay the lowest tax possible.
As a matter of fact, those who can afford it do not hesitate to hire a professional tax planning accountant to take care of the whole thing for them. But these professionals differ in the quality of service they offer. If you will be hiring one, hiring one that offers excellent service would be the best way to get value for your money.
What is Tax Planning?
It is the process of minimizing tax liabilities by taking advantage of any deductions, exclusions, allowances, and exemptions. Done right, you can save a lot of money, especially if you run a business. You can visit tax planning with BorderlessWealth to learn more.
In this article, we will go over some of the benefits of hiring a professional to handle your tax planning and some of the steps you can take to ensure you hire the best one.
Benefits of Tax Planning
The following are some of the benefits of planning your taxes:
The main object of planning is to help your business save money by maximizing its deductibles. In addition to saving money, the saved funds can be reinvested into the business to fund operations.
Know your Business Better
Through tax planning, business owners see the bigger picture which helps them to better understand their business. They get to know if the business structure they have chosen is the most advantageous to the business from a tax perspective. They can also find potential profit areas that have been underexplored or may not have been tapped by the business at all. Planning also helps business owners discover new investment options and choose how best to structure those investments. Click here to learn more about business structures.
Take Advantage of Recent Budget Changes
Reputable tax planning accountants are always up to date with all federal budget changes and schemes that can be beneficial to their clients. By working with this class of professionals, your business can take advantage of any useful incentive schemes that come up.
How to Hire a Reliable Tax Planning Accountant
We mentioned earlier that the quality of service these professionals offer differ and there are several factors that could be responsible for this including qualification and experience. There are so many professionals that claim to be the best when it comes to this area, however, not all of them can have the type of impact you want. The following steps may be of help when looking for the right accountant to hire:
Ask for Referrals
Tax planning is something many business owners do and if you have friends and family that run businesses of their own, you may want to start by asking them for referrals. Unlike in the past, many business owners these days are aware of the incredible benefits that come with tax planning done by professional CPAs. Check out https://www.investopedia.com/terms/c/cpa.asp to learn more about CPA.
Ask around to know if they are satisfied with the accountant handling their books. If they are, chances are that the professional knows their job and you will probably enjoy working with them too. With recommendations, the more the better as you can compile a list and further vet them before making a choice.
That said, we must mention that people rarely recommend services and products with which they are not satisfied. This means that if the professional was recommended, there may not be a need for further vetting and assessment, especially if their service is urgently needed. But then again, if you want that assurance and you have some time on your hand, you can always take your time to screen the recommended hires.
Say you decide to go down the path of vetting the recommended candidates, there are a few key questions that you might want to ask. But before we look at those, we must mention that you might have a hard time finding accountants to sit down with for an interview in the middle of the tax season.
That said, most should have about half an hour for a phone interview. You should avoid those who object to both as they clearly do not have your interest and that of your business at heart. With that out of the way, let us look at some of the questions you should ask in that interview:
- What are your credentials? At the least, the accountant must have a relevant bachelor’s degree and a certified public accountant (CPA) qualification. But on paper, the more qualifications they have the more capable they should be.
- Do you have any specialties? Asking this question during the vetting process is important if you have a specific need. For instance, if you run a rental property business, it would be more beneficial to you if you hired an accountant who specializes in this area.
Businesses can really benefit from tax planning and business owners should take their time when hiring a professional for the job. In addition to credentials and specialty, years of experience should also be an important consideration. Those that have spent several years in this profession are usually more capable and informed about different cases.