Choosing a Tax Advisor: Everything You Need to Know

Choosing a Tax Advisor: Everything You Need to Know

A tax advisor is a tax expert who uses specialized expertise to help clients make better tax-related choices. Because "tax advisor" is such a broad term that encompasses a wide range of specialties and expertise, it's critical to know what benefit you can expect from a tax advisor before hiring one.

Here are some tips that might help you in choosing a tax advisor:

Figure Out Your Tax Needs

Identifying what services you require is the first step to finding the best tax professional. Some people only need basic tax returns, while others may need a tax preparer who can solve specific tax situations and offer advice all year.

However, just because someone is a CPA does not mean they are qualified to handle your taxes. Finance professionals specialize in the same way that medical professionals do.

Many CPAs primarily focus on audits, and some choose a career in tax that may focus entirely on a particular area such as personal, promotional, or real estate taxes.

Similarly, non-CPA tax preparers may specialize in certain returns but not others.

Find High-Quality Advisors

There are many types of tax advisors, including Certified Public Accountants and Enrolled Agents, plus many other professionals who have a Preparer Tax Identification Number, allowing them to plan federal tax returns for a fee.

Sadly, not all tax professionals are treated equally. Every year around tax season, new tax preparers appear on the scene, promising to assist people with their returns, only to vanish on April 16th. In 46 states, people can perform tasks as self-reliant tax preparers without passing a test or continuing education.

Find Available Advisors All Year

Nowadays, plenty of tax preparers appear throughout tax season, only to vanish after filing your return, never to be seen or heard from again. 

Events occur throughout the year that can significantly impact how you file your taxes for that year. When life gets in the way, having a dependable tax professional who will pick up the phone at any time of year to respond to your tax questions can make all the difference.

Find Two-in-One Advisors

When looking for tax assistance, it's all about finding the right personal income tax specialist.

Deciding on a tax advisor who is also a qualified financial planner can provide a more balanced perspective on how taxes affect your overall financial situation.

A decent, well-rounded CPA/CFP could be extremely valuable to you over time and help you with tax preparations, retirement savings, investments, home mortgage costs, and college funds.

The Bottom Line

As a business owner or an individual, one of the most significant decisions is to hire a good tax advisor.

Choose a professional keen to help you understand the rules and lower your chances of being audited. The tax code gives you a lot of leniencies regarding how you run your business and how you structure your transactions.

In the end, find a decent tax advisor who understands the tax code and can help you save millions of dollars throughout your life!