5 mistakes to avoid when hiring a business tax preparer

Most businesses, especially SMBs, forgo hiring a tax preparer to save on money. However, the benefits of getting tax preparation services from an expert far outweigh its costs. This is because a tax preparer can resolve issues, answer your questions, reduce your risk of an audit, and file your taxes on time.

Therefore, you should consider hiring a tax preparer to save money and time. But, be wary of these mistakes when considering professional tax preparation.

1. Looking for the cheapest solution

When hiring a tax preparer, basing your decision on price only is misguided and can cause you to spend more money in the long run. Remember, a cheaper option isn’t always a quality solution. Instead, check credentials, experience, and reviews.

You can also ask other businesses in your region who they recommend and their experience with various tax preparers. They’re more likely to give you honest and reliable advice.

2. Hiring a tax preparer just for tax season

A tax preparer is a professional tax advisor that can look at your company’s financial statements to help you minimize business taxes. So, instead of hiring them to file your taxes during tax season, keep them around all year as they can discuss long-range plans and strategies for your business taxes in the future.

Additionally, a reliable tax advisor can update you on changes in tax law and how they might affect your business tax strategy.

3. Hiring a non-professional

Tax preparation is a complex process that requires keeping up with tax changes every year. Luckily, a qualified and trained professional can evaluate tax situations and prepare your taxes on time for tax season.

Hence, don’t hire your family member that dabbles in taxes or a neighbor who thinks they’re an expert in business taxes. Only hire a tax preparer or advisor with a proven track record in tax planning and is familiar with tax codes.

Need a tax preparer?

At Abbo Tax CPA, we provide quality tax preparation services to business owners. We understand tax preparation can be complicated and difficult and strive to work with you every step of the way.