The 2019 tax season is approaching, and if you own a business, that thought may fill you with dread. But it doesn’t have to with the right team on your side. Having someone who can do the taxes for your business is an invaluable resource and will ultimately save you time that you can spend focusing on things you enjoy. Not to mention the money a tax advisor can help you save by finding opportunities to lower your taxes. If you’re at the stage in your business where it makes sense to hire a tax advisor, it’s worth doing a little research to find the right one for your company’s needs.
First, there are a few different types of tax advisors you should be aware of — the most common of which are certified public accountants (CPA) and enrolled agents (EA.) Ultimately, all tax advisors have an in-depth knowledge of the U.S. tax code, but the distinction is often made in licensure. EAs are licensed by the government, while CPAs are licensed by the state.
Another thing to consider before choosing a tax advisor, is the level of service you’re looking for. Do you want someone you can go to once a year during tax season or are you looking for someone who can help with other related tasks like financial planning and bookkeeping? If those tasks are relatively manageable for you to do on your own, you may consider the first option. But if your business has grown to the point that things like running payroll is preventing you from doing important client work, it might be time to bring someone on in a more ongoing capacity. Generally, CPAs provide a broader scope of work, while EAs focus more on tax preparation alone.
If you want even more bang for your buck, consider someone who is both a CPA and a certified financial planner (CFP.) Professionals with both of these titles can not only offer the tax services you need, but also provide insight into how taxes fit into your bigger financial picture. This well-rounded approach can help you understand the health of your personal and business finances as a whole.
If all of this sounds like a lot to think about, the professionals at Denver Tax Advisor are ready to assist with anything tax related, from personal taxes and financial advice to business taxes and bookkeeping. Wherever you’re located, find someone you trust and get a head start on filing this year’s taxes.