Finding the right tax professional is a big decision that can impact your financial health, business success, and overall peace of mind. It’s essential to choose someone who understands your business, communicates clearly, and provides reliable service. Let’s discuss best practices for finding the right tax professional for your business.
Reasons You May Need to Switch
If you’re considering a change, you’re not alone. Many business owners switch tax professionals for a variety of reasons, including:
- Retirement or Career Change – Your current tax preparer may be retiring or moving on to a different role, leaving you in need of a replacement.
- Change in Business Structure – If you’ve switched from a sole proprietorship to an LLC or S-Corp, you may need a tax expert with experience handling your new entity type.
- Poor Communication or Service – If your tax professional is unresponsive, makes frequent mistakes, or doesn’t take the time to explain things, it’s a sign you may need a better fit.
- Lack of Industry Knowledge – Some tax professionals specialize in certain industries. If yours doesn’t understand the nuances of your business, it might be time to look elsewhere.
If any of these sound familiar, it’s time to start your search.
How to Search for a Tax Professional
The right tax expert should align with your business needs, offer proactive guidance, and be easy to work with. Here are some helpful suggestions that can guide you in your search.
Other business owners in your industry can be great sources of recommendations, so ask them for a referral of who they use to handle their taxes. When researching tax professionals, look for CPAs (Certified Public Accountants) and EAs (Enrolled Agents) with a proven track record.
Sites like the IRS directory, the National Association of Tax Professionals (NATP), or even LinkedIn can help you find qualified professionals. Online tools can narrow your search to find tax experts who specialize in your industry or region.
Once you have a short list of potential prospects, schedule a quick consultation to help you gauge their experience and communication style. Before hiring, here are some of the most common questions to ask:
- Do you specialize in working with businesses like mine?
- How do you communicate with clients? Email, phone, video calls?
- What are your fees, and how do you charge (flat fee vs. hourly)?
- Do you offer year-round tax planning or just tax prep?
- Will I be working directly with you or someone on your team?
- What happens if I get audited?
A solid tax professional will answer these confidently and transparently. It will also give you an indication if they are a good fit for your business needs.
Red Flags to Avoid
Not all tax professionals are created equal. Choosing the right expert can make the difference between having an effective tax strategy or struggling with compliance issues that could cost you time and money. Therefore, watch out for these warning signs:
Promises of Huge Refunds Without Reviewing Your Finances – Be cautious of any tax preparer who guarantees a big refund before looking at your numbers. A reputable professional will review your financials first and provide honest expectations.
Unclear or Hidden Fees – Transparency in pricing is essential when choosing a tax professional. If they are vague about costs or pricing details, it could indicate hidden fees or unexpected charges later. Understanding the full cost upfront helps you budget accordingly and ensures there are no unpleasant surprises when the final bill arrives.
Lack of Communication – If a tax professional is difficult to reach before you even hire them, it’s a sign that communication may be an ongoing issue. You need someone who responds promptly, especially during tax season.
Sketchy Tax Advice – Be cautious of professionals who recommend questionable deductions or suggest bending the rules to lower your tax bill. A trustworthy tax professional will follow the law while ensuring you take full advantage of legitimate deductions.
Lack of Credentials or Experience – A tax preparer should have relevant qualifications, licenses, and industry experience. Always verify their credentials and ask about their experience handling businesses similar to yours.
If any of these red flags pop up, it’s a good sign that you should keep searching for a better fit.
Key Qualities to Look For
A great tax professional should be someone you can trust to handle your finances accurately, efficiently, and ethically. Look for these qualities when making your choice:
Experienced in Your Industry & Entity Type – Tax laws can vary depending on your industry and business structure. The right professional will have experience handling businesses like yours and understand industry-specific tax strategies. They should also be familiar with the state and local tax requirements for your type of business.
Proactive, Not Reactive – A tax professional should do more than just prepare your return; they should help you plan ahead, identify opportunities to save, and advise on tax strategies throughout the year. They should also stay informed on the latest regulations to ensure compliance and take advantage of new opportunities.
Transparent & Honest – The right tax professional should be upfront about their pricing, deadlines, and what you can expect during tax season. They should explain how they handle filing extensions, estimated tax payments, and potential audits. Honesty is especially important when dealing with complex tax matters such as business deductions, multi-state filings, or IRS notices.
Easily Accessible – Clear communication is essential. Your tax professional should be easy to reach through phone, email, or in-person meetings. They should also respond promptly, especially during tax season when deadlines are tight. A reliable tax expert understands that their clients need guidance throughout the year, not just when it’s time to file, and should be available to provide support when needed.
Well-Reviewed & Recommended – A strong reputation is a key indicator of a quality tax professional. Look for consistent positive feedback regarding their accuracy, professionalism, and ability to explain tax matters clearly. Additionally, affiliations with organizations such as the American Institute of CPAs (AICPA) or the National Association of Enrolled Agents (NAEA) can signal credibility and ongoing professional development.
Choosing someone with these qualities will give you confidence that your taxes are being handled correctly and efficiently.
Choose Wisely
Finding the right tax professional is a crucial step for your business, and we know how overwhelming the search can be. That’s why we connect our clients with reputable and skilled tax professionals who we work with and who fit their needs.
Trusted experts are not limited to taxes. Most successful small businesses use both a bookkeeper and a tax professional. Contact us to learn how our bookkeeping services can support both your business and your tax professional.