Finding the right help to do your taxes can be challenging, particularly if you have a business or multiple sources of income. That is where a local tax accountant could truly help. They know your state tax laws, are available whenever you want them, and will offer customized assistance based on your requirements.
However, how can you determine if a local tax accountant is best for you? Listed here are the best questions to ask prior to hiring a local tax accountant near you. These questions will help you avoid surprises, select the best fit and feel confident about tax season.
Why Selecting the Right Local Tax Accountant Matters
The taxes tend to be more than numbers on paper. Mistakes cost you money, time and at worst they set you back IRS fines.
A good local tax accountant helps in:
- Maximize deductions.
- Keep up with tax laws.
- File accurately and on time.
- Save for future taxes.
Even more important, they can explain it in simple English. So ask these smart questions before you commit.
Important Questions to Ask Before Hiring a Local Accountant
Below are some questions to ask:
1. What Kinds of Clients Do You Usually Work With?
What matters: Not all accountants handle exactly the same types of tax problems. Some work with people, others with companies and some with real or high-income estate clients.
What to look for: Look for somebody who helped others in your circumstance. For instance, in case you operate a small company or are self employed, ask if they've practical experience with Schedule C filings, estimated taxes, or even business tax.
2. Are You a CPA?
What matters: Nearly all tax preparers aren't CPAs (Certified Public Accountant). Although most non-CPA tax preparers are skilled, a CPA has passed rigorous exams, is qualified and sometimes has wider financial knowledge compared to many.
What to look for: A CPA might cost a bit more, but they could be a great investment in case you have a complicated tax situation or even require long term planning assistance.
3. How Do You Keep Up With Tax Law Changes?
What matters: U.S. tax rules are changed nearly every year. A local tax accountant should know about proposed federal and state tax changes affecting you.
What to look for: They should mention continuing training, webinars, certifications or business associations like the AICPA (American Institute of CPAs). If they claim, "I've been doing that for years," and they've no recent learning, that might be considered a red flag.
4. What's Your Process During Tax Season?
What matters: You have to know how they work. Do they meet in person? Use an online secure portal? Demand documents by a specified date?
What to look for : Clear communication. An excellent local tax accountant can explain how papers are collected, how long it takes, and what happens in case you are late sending a thing in.
Ask if they use tools like ProSeries or Drake Tax and whether you get electronic copies of your return.
5. Could You Help Me Plan for Next Year Too?
What matters: An excellent accountant helps you save more next year than just once a year. This might include planning deductions, creating retirement accounts or managing income flow.
What to look for: If they add tax planning as an add on service, that is good. This means they are not only data-entry people, they are advisors as well.
6. What Are Your Fees & What Is Included?
What matters: Nobody loves surprise bills. A number of accountants charge flat rate, others charge per form or hourly.
What to look for: Ask for an estimate before they begin. Ask whether follow up questions or audit support are included. A great local tax accountant will be transparent and forthright.
7. Do You Provide IRS Audit Support?
What matters: If something prompts an audit, you need professional help. Some accountants offer audit assistance for free and some charge additional.
What to look for: Be sure they'll at least help you gather documents or explain the return to the IRS in case necessary. Bonus if they represent you directly.
8. Will I Be Working With You Directly?
What matters: Some accounting companies send your information to junior staff or assistants. That is not necessarily a bad thing, however you must know whom to call with questions.
What to look for: Ideally, you have one consistent individual who understands your case and who's there whenever things get hectic.
9. Know My Local State and City Tax Rules?
What matters: A local tax accountant ought to know which deductions and laws apply in your state, city, and county. For example, New York and California have different rules for business owners than Florida or Texas.
What to look for: Find answers that demonstrate they have worked with clients in your area and understand state-specific rules or credits you might qualify for.
10. Can You Meet My Future Tax Needs?
What matters: Maybe today you need just W-2s and 1099s. But eventually you may start a business, purchase land or retire.
What to look for: If they provide more than business setup, tax planning or retirement advice, you will not have to find one more accountant later. It is about growing together.
Signs You Found the Right Local Tax Accountant
Look for these green flags after you ask above questions:
- They explain things clearly.
- You can ask dumb questions.
- They respond on time.
- They are upfront with pricing.
- You put your trust in their experience and judgement.
And if you feel pressured or unsure, continue looking. It is your money and your peace of mind on the line.
When You Might Need an Accountant
Some wonder whether they ought to use software rather than an accountant. The fact is tools such as FreeTaxUSA or TurboTax work fine for simple tax returns. But here is when you most likely require an accountant:
- You are self employed or you operate a small business.
- You bought/sold property.
- You had lots of investment income or capital gains.
- You had a huge life event (marrying, inheritance, brand new child).
- You want to cut taxes with better planning.
In those instances, a local tax accountant may save you cash by pointing out deductions or tax breaks that you omit.
Related Resource
- Top 5 Reasons to Hire a CPA Accountant for Your Small Business
- How to Use ProSeries for Multi-State Filings
- What Financial Records Should I Keep for Tax Season?
Hiring a local tax accountant near you need not be a stressful experience. The key is asking the right questions, knowing their process and also ensuring they match your financial and communication style.
Whether you are a first time filer or an owner of a small business willing to grow, the right tax accountant could be your advisor for decades to come.
So ask smart, choose carefully and file with confidence, because taxes don't need to be stressful when you have the right guy on your side. Talk to our experts at The Fino Partners to learn more.
