Finding someone to handle your business taxes is essential to ensure the best action. Generally, we recommend you find a certified public accountant who understands the tax regulations and codes, which will help you boost savings, obtain potential rebates, and prevent expensive mistakes.
At the same time, they can represent you in case the Internal Revenue Service decides to make an audit due to a particular situation. Of course, becoming a CPA requires at least hundred and fifty semester hours of college coursework before passing the Uniform exam. It is vital to check here to learn more about creating a business financial statement.
In most cases, a college degree requires approximately 120 hours, meaning a CPA must obtain Masters Degree or additional education to get the license to work and operate. Some of them will have MA in accounting or other financially related fields. At the same time, they may go to specific courses to qualify for the Uniform Exam.
The exam features four different tests a professional must pass during a year and a half window with a wide array of topics related to finances and accounting, such as:
- Tax regulations
- Financial reporting and accounting
- Attestation and auditing
- Business concepts and environment
After finishing the exam, they must work under the supervision of someone with an active license and handle at least 1,800 hours of work, which is approximately a year of full-time operation. Of course, work must be in the form of accounting, which is the step toward a license.
Since becoming a CPA requires intense requirements and preparation, it is one of the most important and well-respected credentials in business. Therefore, finding a certified public accountant will help you with tax planning and advice. We are talking about management advisory, accounting services, consulting, tax skills, and financial advisory.
Watch this video: https://www.youtube.com/watch?v=5GQtD8YV86Y to learn the importance of finding a CPA.
Tips for Finding a Good CPA
- Specialization – Certified public accountants can have numerous specialization options, such as government, business, and forensic accounting, while tax preparation is necessary. Therefore, to handle this type of business, you should find someone specializing in tax returns.
- Identification Number – Another important consideration is to check out their Preparer Tax Identification Number or PTIN. The IRS requires a professional to have it. Therefore, you should ask them and verify it on the IRS website.
- License – Since they also need state licenses, you should search the records at the state accountancy body. Remember that most states will feature CPA databases where you can find the status, expiration date, and other information that will help you narrow a search, such as potential suspensions and ongoing disciplinary actions.
- Experience – We have mentioned above the extensive process of obtaining a CPA license, which requires ongoing education, exams, and hours of working. Still, finding a novice or a professional can make a huge difference. Someone with experience is more likely to understand the tax regulations. Therefore, you should determine whether a particular professional uses the latest tools for the process. Besides, CPAs should have electronic filing experience, especially because preparers must file more than eleven returns annually by using e-filling services.
- Check Out Whether They Will Sign a Return – You should ask a potential accountant to sign a return while representing you at the IRS on any potential matter that will happen in the future. If they reject you, we recommend you find someone else instead.
- Ask for Specific Advice – A professional accountant will file and prepare your return and handle a current financial year. However, you can also get financial planning advice, which will help you reduce expenses and save money on taxes as time goes by.
- Consider the Fees – CPAs may charge a flat fee by the hour or use other payment options based on the complexity of the issue they deal with. Make sure you ask about the fees and determine whether they can help you handle federal and state returns. Generally, they should not base the fees on a tax return percentage, which you should avoid.
If you need expert help with taxes, we recommend you find a CPA to offer you peace of mind.
- Audit Defense – The worst thing that can happen to your company after filing a return is an IRS audit. However, it tends to happen often, so you should prepare yourself throughout the process. In this event, it is vital to have an expert by your side to represent you in Tax Court or before the IRS. They can gather relevant documents for the return and deal with the IRS. Of course, you must authorize them to do it. Having a professional and certified CPA to discuss your returns with the Internal Revenue Service is a better solution than doing it yourself.
- Referrals – The best way to find someone professional who knows how to do things is through recommendation or referral. The same is true when a potential customer requires services from your niche, and someone recommends you. Since you can ask other business associates and partners for the best CPA, you can create a list and the types of tax preparers
Different Types of Tax Preparers
- Enrolled Agent – First, you should remember that an enrolled agent is a tax professional with a federal license with IRS. They are authorized to represent, advise, and prepare returns for individuals and businesses. Of course, they must pass rigorous examinations and obtain experience as former IRS employees.
- CPA – On the other hand, a certified public accountant is a professional who also must meet the challenging experience and educational requirements. They feature state licenses and must complete ongoing education to ensure they have an up-to-date license. You can choose them for numerous reasons, including returns, deductions, financial reports, analysis, etc.
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- Tax Attorney – A tax attorney is a professional specializing in tax matters. Apart from preparing documentation, they can legally represent you before the Internal Revenue Service and criminal and civil courts. Therefore, you should talk with an attorney if you wish to get legal advice before anything happens. Morrison offers tax advisory services in Singapore, check them out now!
