Who Should Prepare My Taxes?

If you need your income taxes prepared and filed, there are a number of options in which to complete this yearly task. The level of service you need depends on what you are looking for in a tax advisor. 

When it comes to finding a tax professional, it’s important to do your research and find someone who is knowledgeable and trustworthy. A good place to start is by asking for recommendations from friends or colleagues, or by searching for reputable firms online. One example of such a firm is Devonshire Green Accountants London, which has a team of experienced tax professionals who can help with everything from simple tax returns to more complex business accounting. By building a relationship with a firm like this, you can ensure that you have access to trusted advice year-round, rather than just at tax time.

There are two groups of tax advisors – those with professional credentials and those without. You could choose a local tax preparer who has been performing a seasonal tax service for many years and is more than adequate for you. You might head to one of the national tax franchises. These part-time folks enter your data by going through a question and answer program, similar to what is offered by TurboTax software. There is very little personal professional judgment offered and they are available just a few months of the year.  

Then there are professional tax and accounting practices employing CPAs, EAs and tax attorneys who can represent you before the Internal Revenue Service.  They can also help with How to produce great Management Accounts, in order to maintain the right records.

A CPA is a Certified Public Accountant licensed by the state in which they practice. CPAs have completed a Bachelor’s degree and likely a Master’s degree in accounting and tax, have passed a state multi-day exam on accounting principles, tax law and its applications, and completed an experience requirement with an established CPA firm. CPAs provide a broad-based approach to your tax and accounting circumstances.

An EA is an Enrolled Agent, a person who has taken and passed a comprehensive IRS exam or has been employed by the IRS for five years. All unlicensed tax preparers should aspire to complete this exam. 

A tax attorney would be necessary in working with legal arrangements and tax court cases. 

Fees for tax advice and tax return preparation will vary with the complexity and length of time it takes to perform any tax research and for preparing your return. It comes down to what you value – the commodity of tax preparation or the relationship with a trusted advisor who also prepares your taxes. 

Are you looking for a new tax advisor, especially with the complexities in the new tax law dealing with the CARES Act and its updates? Ask to meet with the prospective tax professional. Do you feel comfortable with them? It’s okay to gauge their fee, but don’t make price your first criteria. It costs a lot to be in business and to maintain professional credentials. 

Review our website and get in touch when you are ready to talk to us.  

Peter VanderWoude, MS, CPA, CGMA
EQUUS ADVISORS
Accounting and Tax Professionals
www.EquusCPA.com – 607.756.5691