Join our Waitlist for Expert Advice!

Don't Have a Tax Pro Yet? Time to Get Moving! If you haven't hired a tax professional for your new business, we outline strategies to get you started.

By Amrik Randhawa Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

jarmoluk

For new entrepreneurs, tax time can be a stressful one. Thankfully, you can minimize that stress by finding a knowledgeable, trustworthy tax professional. A great expert will not only answer your questions, but be a true advisor, helping to anticipate what might be around the corner. We sort out the questions you need to ask to help you find the right fit.

When should I start looking? Yesterday! If you haven't nailed down an accountant or tax professional to help you with your filing, you should do so as soon as possible. Accountants are on the cusp of Busy Season and that means their dance cards are filling up—quickly.

What should I look for? The spectrum of tax professional capabilities varies widely, and includes Certified Public Accountants, accredited tax accountants and tax attorneys. CPAs have training in managing a business' financial records, but may or may not have experience with filing taxes. Accredited tax preparers and accredited tax accountants pass a special taxation exam and some specialize in business returns. Tax attorneys often are specialists in IRS tax code and are admitted to the state bar.

These professionals have different backgrounds and strengths so ask your lawyer what works best for your business. Your lawyer can make suggestions based on how your company is formed, your jurisdiction and predict what you might need. Besides training, you'll want a tax professional who aligns with how you run your business. For instance, those who use cloud-based accounting software might want an accountant who's comfortable with digital tools. If you value face-to-face meetings, make sure you find a tax professional who can make the time.

What about cost? Of course, cost can be crucial. Reach out to a few tax professionals to get a sense for the services and the market. Get a sense for their rates, what they expect your filing to require, an estimate of how long it will take, and when their fee will be due. Of course, a tax professional can be one of your most trusted allies. If there's one area in which you shouldn't tighten the purse strings, it's tax prep. Pay good money for it.

How do I vet them? Ask about training. How do they keep up with constant changes in tax law? You should also ask about deadlines. If they can rattle off the filing deadlines that apply to your business right off the top of their head, that's a good sign.

You might also ask what types of clients they typically handle, if they handle more tax filings for individuals or businesses and what types of businesses they've helped. It doesn't hurt to ask if they've worked with new businesses like your own, since you might need some hand holding.

Find out if the person with whom you're interviewing will be handling your return. If it's a junior employee, ask about that person's training and experience level as well.

You should also know what happens after tax season – is your information stored in some way and if so, for how long? What happens if there's an audit?

What do I do when I've found the right candidate? Ask for references and get calling. Ask those businesses about their experience, if there were any hiccups, what it was like to work with this individual and what they wish they'd known that didn't. You want to find an advisor who will be there for you in the long-term so it's worth a few extra questions to ensure the right fit.

Amrik Randhawa

Product guy at Kashoo

Amrik Randhawa is a product guy at Kashoo: simple cloud accounting for small business, on the web and on the iPad.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

You Have One Month Left to Buy a House, According to Barbara Corcoran. Here's Why.

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

Business News

These 3 Side Hustles Make the Most Money While Working Fewer Hours, According to a New Survey

The survey also found that having a side hustle doubled as a path to becoming more employable.

Business News

This New Restaurant Is Banking on One Dish — Because It's the Only Entrée on the Menu

The new hotspot is gaining buzz on social media for its innovative yet super simple concept.

Side Hustle

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.

Leadership

4 Bold Leadership Moves Every Successful CEO Uses to Navigate Change

Ready to turn fear into fuel and lead with confidence? In this article, I share how leaving my corporate job without a plan led me to build a thriving business. Learn four bold strategies to embrace uncertainty and turn challenges into opportunities for growth today.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.