Tax consultants, also known as advisors, are law, planning, and compliance experts. They serve businesses and individuals by staying current on new laws and positioning taxpayers for short- and long-term optimization.
A consultant typically expands on the role of a tax preparer. While the consultants prepare returns, they often work closely with clients throughout the year to minimize client liability. Don’t assume that hiring a consultant is only for the rich. Hiring one could cost you a few hundred dollars, but it might also save you a few thousand dollars or much more.
Who Is A Tax Advisor?
To genuinely understand the value of an advisor, you should know what an advisor does for their clients. Individuals and businesses turn to these advisors to ensure they fully comply with their taxes. The consultants are financial experts with full years of accounting training. They will have extensive training and knowledge of the law as well. At the same time, individuals would see that a great tax advisor would mitigate obligations while staying in line with the relevant laws in more tangled financial endeavors.
The advisors can range from CPA to other financial representatives with varying licenses. It is important to note that you do not want any professional working on your affairs; you want to work with those with experience in your specific cases and who have had to experience with a wide variety of such matters. Remember to work with the consultants you feel most competent for your tax case.
If you are looking for assistance with services, accounting services, audit assistance, reporting, and more, reach out to the professionals today. They help small businesses and potential clients mitigate taxes and create a brighter financial future.
What Does A Tax Consultant Do?
They know all about state and federal regulations that businesses and individuals must abide by when they file their taxes. When you hire a consultant, they will advise you about your filing options over the phone or in person. Some other aspects they cover include:
- Collecting, organizing and preparing documents and returns.
- Evaluating a client’s financial and legal circumstances to determine liabilities.
- Assisting clients with these issues during and after a significant life transition, such as a marriage, divorce, death of a spouse or birth of a child
- Completing complex forms and schedules that most tax preparers are unfamiliar with.
- Representing a client in dealings with the IRS or other tax collection agencies
What Is The Difference Between Accountants And Tax Consultants?
Generally, a consultant is a professional trained in these laws. If you want any legal tax advice from an advisor, he must be a practitioner of tax-related issues or running an advisory firm. At the same time, he must be a holder of a certificate of practice. An accountant is a more general, all-encompassing term.
An accountant could be an advisor, but not necessarily. Not all accountants do taxes. Some accountants prepare financial statements, journal reconciliation, budgeting, etc. A tax advisor could be a CPA, lawyer, Enrolled Agent or just somebody with no license that calls themselves a tax advisor because they prepare the same.
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The Top Reasons Why You Should Hire A Tax Consultant
1. It Saves Time
Owning a business takes so much of a person’s time. A person can only do so much from budget planning, marketing, and actual selling of goods and services. By hiring an accountant, the business owner will do what they do best: run the business. Time for the concerns will be handed over to an expert.
2. An Accountant Provides Invaluable Advice
Part of an accountant’s education is navigating through complex problems and making a business pay for them less. A business owner’s savings from an accountant’s informed advice will prove invaluable.
3. It Helps A Business Owner Avoid Costly Mistakes
A business person can make an error, such as unintentionally giving the wrong income amount for taxes, simply because their knowledge of taxation is not comprehensive. Let’s face it; the entire tax process can be confusing.
Unfortunately, the bureau will not overlook this error. An accountant knows how to navigate the process more efficiently, saving clients money and preventing mistakes.
4. Preparation And Filing Is A Complicated Process
Paying taxes is a cumbersome affair. One has to fill in the proper form and provide numerous facts about income, accounts, payroll, and expenses while running their business. Unburden yourself from this stress and let a professional get it right first.
5. A Tax Accountant Can Spot Exemptions Right Away
A person can deduct certain expenses from their taxes and may not know it. When people depend on a person financially, even a relative who is not that person’s child, the money one spends on them can lessen their taxes, for instance. An accountant can know what particular personal expense is tax-deductible.
6. Stay Updated With New Laws
Social security tax for U.S. citizens increased in 2013, 2014, 2015 and 2017. Some may not be aware of how new policies affect them. It’s part of the tax accountant’s job to be well-informed about changes in tax laws. With their help, the business owner also gets updated.
7. An Accountant Can Be Reliable Beyond Taxes
A tax accountant knows a lot about critical financial concerns besides taxes. They can provide business advice, asset management, and even retirement plans. This financial expertise means a person has not just hired an accountant but a learned business partner as well.
8. On-going Advisor
You can still have your tax consultant as your advisor even though you’re no longer officially hiring him or her as your consultant. This way, you will be able to continuously ask for updates or advice as and when you need them.
It is not an exaggeration to say that a tax accountant is not just an unnecessary expense but also an indispensable person in the business. A person makes an informed business decision by hiring a reliable one from a well-reputed firm.