If you’re a small business owner, then you probably smile (or grimace) whenever you hear the phrase, “It’s tax season.” For you, tax season is a year-long affair. Keeping track of all of your documents, payroll, FICA payments, daily reconciliations, and more is a full-time job in itself, but you still have to know how to get the most out of all of that information when the time to file actually arrives.
But how do you know what kind of tax preparation specialist to work with? Depending on your situation and needs, some experts might be more beneficial than others. In today’s blog from George A. Spencer, CPA, P.A., we will examine the different kinds of tax preparation specialists you can choose from and explain how each one can help you and your business.
The expert tax preparation team at George A. Spencer, CPA, P.A. has been helping small business owners just like you save money on their taxes for over 20 years. From tax planning to filing, George A. Spencer has the professional and legal expertise to improve your bottom line and protect your business. Schedule a free consultation to learn more.
What Exactly Does A Tax Preparation Professional Do?
In short — a lot. A true tax preparation professional not only helps with correctly filing your taxes for your greatest benefit, but they also can provide useful tax services before and after filing as well.
Whether advising and coordinating a tax planning strategy throughout the year to help you avoid — not evade — unnecessary taxes and fees to coordinating business and personal taxes for the greatest returns to representing you in the case of an IRS audit, your tax preparation professional should be able to do it all.
What Are The Different Kinds Of Tax Preparation Professionals?
There are three primary categories of tax preparation professionals who can provide you with the small business tax services that you need. Each different type can help with actually preparing your taxes, but some offer unique and specialized services that may be beneficial to your company.
Certified Public Accountant (CPA)
Certified public accountants, or CPAs, are licensed and regulated by each state. They are accounting specialists who are often hired specifically for the sake of helping businesses navigate the complex tax code effectively. Although any accountant can help with simple tasks like bookkeeping and daily, weekly, or monthly accounting, CPAs are better suited to help install a comprehensive tax planning strategy to make the most of your tax credits and deductions.
A tax attorney is a legal specialist who has received a degree in tax law or a lawyer who has received certification for tax law from their state bar. These legal experts are qualified to represent you before the IRS in a tax resolution or in tax court. They can also help you understand the impact that new tax laws have on your business, but they may or may not be the actual best choice for preparing your actual taxes themselves.
Enrolled Agent (EA)
An Enrolled Agent, or EA, is someone who has been credentialed through the IRS to act on behalf of individuals and businesses as a tax representative. They might be a CPA, a tax attorney, or someone else entirely. Becoming an EA requires passing a test and maintaining 72 hours of ongoing education every three years.
Which Tax Service Professional Is Right For My Business?
Each business has unique needs. If you are a very small, straight-forward business with one or two employees who sell a single product and you’ve never been audited, then a CPA can probably handle all of your needs just fine. If your business has more employees, has been audited in the past, or has a particularly tricky legal aspect to it — such as medical services or the distribution of controlled materials or substances — then a tax attorney is likely your best bet.
Each business has unique needs and each tax service specialist brings something to the table. To avoid having to hire multiple experts, hire a team like the one at George A. Spencer, CPA, P.A. — he holds certifications as both a CPA and a tax lawyer, meaning that when you work with him, all of your bases are covered. It’s the best way to be confident that you are doing everything you can to protect your company and profit from the efforts of your company while making sure that you are mitigating risk and liability.
Work With The Tax Preparation Team That Does It All
George A Spencer, CPA, P.A. has been providing high-quality tax services to Jacksonville business owners for over 20 years. His experience, education, and vigor can improve your bottom line and help your business get the most from its tax returns. Call us today or schedule a free consultation online.