When you need a professional small business accountant or tax preparer, you will always want to hire the best in all. You will, however, want to hire someone who can maximize your tax return and do the tax filing correctly. Also, you will want to be certain that the tax professional you hire is reliable since the person will be privileged to a lot of your data. But the concern here springs up is how to find the right tax professional that is qualified, skilled, and trustworthy.
Most of us hire professional tax preparers or tax accountants or tax advisors while filing tax returns. Very few of us know much about these tax professionals. Most people who hire tax professionals never verify the person’s credentials and many of them never consider asking if the tax preparer will represent them in an audit. Hiring a tax professional means sharing data about everything you have, your income, your accounts in the bank(s), your marriage, your children, and your social security number. However, it is vital to ensure that the professional you are signing is the right person to partner with.
When tax season arrives, you will be more furious to knock on the door of a professional small business accountant or tax preparer without knowing who you should reach out to file your taxes. Choosing a professional from the two is a complicated decision.
Well, tax preparers and tax accountants are the types of tax professionals. Perhaps, understanding the difference between both can help you conclude who you should hire.
Qualification and Training
Well, accountants in Etobicoke have to earn a professional designation. To get this they will need to complete four typical years of a university degree. Tax preparers, on the other hand, might not have any formal educational qualifications, but indeed, they need to attend a tax preparation course. Many big organizations have their certified tax school and all employees performing their duties in these organizations have to go through the school.
Before signing a tax professional, don’t hesitate to verify the education and training the person has received. Most importantly, make sure that the school or course they have completed is certified by the Canada Revenue Agency.
Experience
It is commonly assumed that tax preparers can only handle simple tax returns that involve RRSP and T4 receipts. Most tax preparation companies offer various options, training their tax preparers in some particular tax fields that include corporate tax and some other puzzling situations like preparing U.S. tax returns for Canadians who are in the U.S. for work.
Having complicated investments, rental properties, or even if you are self-employed, it is ideal to verify the tax professionals’ experience and knowledge in your specific tax situation. Will the tax professional be capable of handling your tax return?
Cost
When it comes to cost, it hugely differs between hiring a small business accountant or a tax preparer. The fees of tax preparers usually range from $70 to $150. It completely depends on the complexity of your tax return. Moreover, tax accountants mostly charge hourly fees. This can cost you hundreds of dollars.
When hiring the tax professional, be very clear with the fee structure. Ask if the fee will be in reliance on the slips, hours, or will be a flat fee. Beware of the professionals whose fee structure is based on the percentage of your refund.
Security of the Service
Before hiring, ask the tax professional if they would be able to fix the return in case there is an error. If there is an error and the tax professional is to be blamed, who will be responsible to pay the penalty and interest if you need to pay a penalty, more tax, and interest?
Relationship
Professional comfort is vital when you hire a tax professional. Income is a very personal subject. You will, however, need to share your income, savings, and investments with the tax professional. So, you need to be very comfortable with the person you are working with.
Creating a good relationship with the tax professional will help you make your process easier each year. Most independent tax preparers will be around you only for tax season. Ones, the process is completed they will disappear till the next season. Choosing a well-established company ensures consistency since the team of expert accountants and tax preparers will stay with the company year after year.
Reputation
While hiring a tax professional, it is crucial to sign an expert who is reputable and can handle your tax return. A professional and independent tax preparer might offer great rates, but the person will disappear once the return filing is completed. This can be utterly stressful if you have any questions about your return.
Ultimately, it is recommended to research and ensure that the tax professional you are hiring has a successful story and is reputable. You can check the individuals’ or the companies’ reputation through the better business bureau. Availability is also vital. So, even after the season is over, your tax return is in the story. However, the professional accountants in Etobicoke will lend you the helping hand whenever needed; they will take your call, revert to your emails, and welcome you for a visit.
