Fee structures vary widely, and it’s essential to understand these before committing. It’s also crucial to assess whether the potential benefits of hiring the accountant outweigh these costs. The right accountant can be instrumental in facilitating effective financial management.
- In our evaluation of the best online bookkeeping services, we selected Bench as the best overall because of its wide range of services offered at a great value.
- Last summer, Statista, an independent market research institute and statistics platform, conducted broad surveys of tax and accounting professionals and their clients.
- There are many online accounting services that exist, and for many business owners this may be an ideal solution because of the ability to both communicate and work remotely.
- Look for an accountant with at least two years of experience under their belt, if not more.
- Small business accountants are professionals, often Certified Public Accountants (CPAs), who have the experience and knowledge to help owners navigate through their financial records.
Her byline has appeared in national business publications, including USA Today, CBS News, Yahoo Finance MSN Money, Bankrate, Kiplinger and Fox Business. She is a proud graduate of Purdue University and a lover of random acts of kindness, volunteering and cats and dogs. Follow her on Twitter at @ellenychang and Instagram at @ellenyinchang. When choosing a tax preparer, ask them about their communication preference. Some tax preparers prefer discussing issues over the phone or video while others will answer basic questions via email. https://www.bookstime.com/articles/accountant-for-self-employed to prepare your taxes is a relatively straightforward process, but ask yourself why you think you need a professional to prepare your return.
More information on finding an accountant near you
Tax preparers do not need specific credentials, but, they do need to file for a Preparer Tax Identification Number (PTIN) with the IRS. A CPA, or certified public accountant, is a person who has obtained licensing to practice as an accountant through a combination of educational requirements and exams. They may specialize in certain fields of accounting, such as taxation. Membership in a professional organization is always a good thing to have in a tax pro, as most have codes of ethics, professional conduct requirements and various certification programs. Professional associations may also be better equipped to connect you with a tax preparer whose experience and background meet your needs. How do you find the best tax preparer near you with the credentials you want?
Some accountants are moving to a flat or per-hour rate, however, so it pays to ask. If you need assistance with preparing your tax return, consider finding an Enrolled Agent (EA), Certified Public Accountant (CPA) or tax attorney. This includes accounting services, management advisory, financial advisory, tax, or consulting skills.
Must-Haves When Choosing an Accountant
• Enrolled agents and CPAs specialize in helping with tax return preparation and filing, while tax attorneys provide legal advice and representation before the IRS and Tax Court. There are many tax pros out there ready to help with an annual return, tax planning and more. But it can be hard to know whom to trust with your most sensitive information. Most small businesses don’t need a dedicated employee for accounting. Having a member of your team who handles everything financial might seem tempting, but remember to factor in the salary and benefits you would be responsible for providing.
Anyone can apply for a PTIN online for free, so a PTIN alone isn’t indicative of the person’s skill or experience. The right accountant will be the professional whose financial advice will guide you through long-term decisions for your business and be your guidance through legal statutes at tax time every year. If your accounting prospects are members of one or more professional organizations, the organization has done a bit of the vetting for you. A good accountant will have the credentials to back up their knowledge and experience with business taxes. The IRS requires a PTIN for anyone getting paid to help file taxes for others.
What an accountant can do for your business
Look for an accountant with at least two years of experience under their belt, if not more. If your business has grown in revenue and transactions have become more complex, you may want to consider hiring a full- or part-time internal accountant. There how to find an accountant for small business are a number of ways of finding an internal accountant, and this includes asking for referrals and consulting career networks like LinkedIn. Newspaper advertisements and employee search firms are other resources that can be utilized for a fee.
Some accountants have earned licenses or certifications in their profession. A CPA license is granted when an accountant has met certain educational requirements and has demonstrated comprehensive testing of their tax and accounting knowledge by passing the Uniform CPA Examination. An accountant can prepare your taxes quickly, professionally, and securely, ensuring that you get all the tax credits and deductions to which you’re entitled. Perhaps most importantly, they can tackle any unusual or complex tax situations you might face. A CPA, on the other hand, is a credentialed accounting professional who might or might not offer tax planning or tax consulting services, depending on their area of expertise. Another option is utilizing the American Institute of CPAs’ directory or the National Association of State Boards of Accountancy, which allows users to search by state and region.