5 Key Questions to Ask a Tax Accountant for Maximum Benefits

Tax accounting can be quite complex when you lack experience and knowledge. You may also overlook important tax deductions and credits that could save you a lot of money. This is where a professional tax accountant comes in handy. They are trained to identify any hidden deductions and credits that can significantly reduce your tax liability.

However, choosing the right tax accountant can be challenging. To ensure you find the right one, you need to ask the following key questions.

1. What are your credentials and experience?

You need to ensure you hire a tax accountant with the right credentials and experience. A certified public accountant (CPA) is preferred as they adhere to ethical standards and extensive licensing requirements. An Enrolled Agent (EA) is another credential that a tax accountant can hold which enables them to prepare taxes and represent clients before the IRS. Additionally, ensure that the accountant has experience handling tax-related matters similar to your situation.

2. Are you available year-round for advice and support?

Tax season is not the only time you need a tax accountant. You require someone who will be available for questions or guidance concerning tax-related matters throughout the year. Additionally, they will keep you updated regarding tax laws and regulations that may impact your financial situation.

3. Can you estimate my tax liability and suggest ways to reduce it?

One key element of hiring a tax accountant is to help minimize your taxes. Ask about their process of estimating your tax liability and the strategies they will employ to reduce it. This includes knowing how they identify tax credits, deductions, and allowed expenses.

4. How do you communicate with your clients?

Communication is critical in any business relationship, and engaging with a tax accountant is not an exception. Ask how they communicate with their clients and the timelines for communication. Do they use emails, phones, or online messaging platforms? Ensure you agree on the best channel to communicate, the frequency of communication, and what they shall update you on.

5. What is your fee structure?

It’s essential to understand how much you will be charged for services provided fully. Ask the accountant about the fees for their services, including hourly rates or monthly retainers. Additionally, find out how they charge for services such as tax preparation, tax planning, responding to IRS audits, or tax filing extensions.

Conclusion

Hiring the right tax accountant can significantly benefit you, ensuring you comply with tax regulations while reducing your tax liability. Make sure you ask the right questions to ensure you get the best services. Understand that your relationship with a tax accountant is a long-term investment. Therefore, ensure you hire one who understands your needs, shares your goals, and keeps you engaged throughout the year. With the right accountant, your tax affairs will be hassle-free, letting you focus on other important financial matters.