Finding the Right Tax Preparer

The tax preparation and filing process is easier than ever these days. With numerous brands of software available, people can do their taxes at home without any significant problems. The software checks the work and explains each step to you. But for a small business, whether home based or in a storefront, the job of preparing taxes can be more complicated. If you need a tax professional, find one to fit your needs.

People are afraid to make mistakes when doing their taxes. Some even have terrifying dreams of officials in dark suits with shiny badges coming to arrest them in the middle of the night for tax fraud. Besides the fact that we probably watch too much television, for most people there is generally nothing to worry about. If you are in doubt about your skills in the tax department, there is no shame in hiring a professional.

But be forewarned: all tax preparers are not created equally. During the months of January through April, you can find a tax preparer on every corner and in every newspaper. People advertise their services for tax preparation all over the place. Unfortunately, some people have been badly burned by inexperienced or crooked preparers. Do some research before deciding which person to choose. Find out their credentials, how long they've been doing taxes, and their familiarity with small-business deductions and tax forms (if necessary).

Small businesses require more knowledge about complex tax laws than individual returns. A tax preparer who has worked with other small businesses is a must. Even if you are new to business tax laws, they'll usually have all the forms you might need to file your taxes. They'll be able to answer your questions about small-business-related exemptions and deductions. If they can't, they know where to find the answers. However, not all tax preparers handle small-business returns. Ask about their expertise before hiring the services of just anyone. It is better to ask now and not get cheated out of money that is due you from the IRS.

Accredited tax advisors and preparers have received their accreditation from the Accreditation Council for Accountancy and Taxation. They've completed at least ninety hours of continuing education in addition to the requirements for accreditation. These individuals have been trained to handle small business tax returns and to find all the deductions you need.

Certified Public Accountants (CPA) are also qualified to do tax returns for small businesses. These individuals have taken state exams to certify them as public accountants. If you do find yourself in trouble with the IRS, they can represent you in the case.

A search of state websites for tax preparers can give you names of accredited tax preparers and CPAs in your area. You don't have to go it alone. When your tax return needs an expert touch, search for a professional to help you out.