Tax Planning and Preparation Service Can Improve Profitability and Prevent Tax Audits

Hiring a tax professional is money well spent. Tax rules- Some firms have expertise only in personal income
have become more and more complex. Using a pro totax service. Make sure the company you hire has
prepare your taxes may save you from paying moreenough experience in business tax services. Can they
tax than you should. It is probably less costly to hire ahelp you with business tax preparation all agencies
tax preparation service than a nasty tax surprise andincluding federal, state and the city?
a visit from the auditors of the taxing authority in your- It makes sense to interview specific consultants who
country, for example the IRS in the US.will work on your account. Do they have the requisite
Rather than hire a tax preparation service at the endskills and experience to work for your company? Are
of the financial year, consider making tax planning athey easy to work with and are they approachable?
part of your overall business strategy. It will help youAre they interested in working on your account?
maximize profitability and limit exposure to tax liability.- Ask the tax consultant for a few references. Call
Many accounting firms also specialize in tax planning.previous and current clients and inquire if they were
When they advice clients on how to structure ahappy with the service. Did they gain from consultant's
business venture or a transaction, they help them takeadvice? Ask if the consultant is easily accessible. Does
advantage of tax savings wherever possible. A fewshe take enough interest in the engagement?
examples of such transactions are multiple-state- Before you make the hiring decision, ask the
operations, purchase or sale of business, businesscompany to examine your business model and
succession planning, taxpayer dispute resolution andfinancial statements and provide some example as to
e-commerce transactions.how they can help you save money.
Tips on choosing a tax planning and preparation- If you use financial software in your company, make
service firm?sure the software used by the tax preparation service
There are several ways to find a suitable consultingis compatible with it or you will not be able to transfer
firm. Easiest is to search the internet and look for themany data back to your company.
on a B2B marketplace, Google or the Yellow pages.- As a small business owner you may need advice
You can also ask friends, relatives and businessregarding capital gains taxes, estate taxes, real estate
associates for recommendations.taxation, incentive stock options, multi-state operations,
There are several things to keep in mind while hiring ae-commerce transactions, purchase and sale of
tax consulting firm.property, business succession planning, tax dispute
- Consider a firm that is similar in size to yourresolutions etc. Can the firm offer you advice in these
company. Large companies tend to hire big fourareas?
consulting firms. If you are a small company considerHow much does it cost to hire a Tax planning and
one of the smaller companies that have the desire,preparation service?
expertise and resources to help your business.Fees for tax planning or preparation services vary by
- Preferably look for a tax consulting service that hascountry and the level of service. To get the best deal,
previous experience in your industry.compare price quotes from multiple tax planning and
- Ask the tax planning firm about the educationalpreparation service companies at a B2B marketplace.
background and experience of its professionals. AlsoAlso ask your business associates and friends for
check if the firm is registered and licensed to operaterecommendations. Tax consultants can charge by the
in your state or country.hour or based on the forms you need to complete to
- If you want to hire the tax planning service for afile your taxes. For example in the US, a simple
short term assignment, make sure they have thepersonal tax return with form 1040 may cost about
requisite experience in the area. Search on the internet$100 while complex business taxes can run into
for any articles written by the professionals of thethousands of dollars.
company. It can tell a lot about their area of expertise.