A business has different seasons just like summer and winter. There is a season when the sales are high, and the profit figures reach their peak. Then there is a season when the business is just doing well enough to break even. But the one major season that every businessman gets stressed about is the tax filing season. In Canada, businesses have to be prepared with their tax calculations and file them six months after the year-end. But planning for your taxes starts months before the actual tax filing season starts. In fact, the reason why you need to save all your documents pertaining to your financial transaction is for filing your taxes appropriately with the help of a good tax accountant who will help you comply with all federal and provincial tax regulations.
A common reason why many businesses fret during the tax filing season is that they decide to do their tax accounting without the help of an experienced tax accountant. So for the next tax filing season do not spend your time worrying about your taxes – find an experienced tax accountant!
Types of Tax Professionals
Before you start your search to find a good tax accountant, it is essential that you understand the different types of tax professionals who can help you with your business tax filing process.
1. Enrolled Agents
Enrolled agents are people having fair knowledge of tax filing. These enrolled agents need to pass a set of examinations before they can start consulting businesses and people about the taxation process. Enrolled agents do a decent job of handling the taxes. However, these agents have their limitations. An enrolled agent may be able to represent their client during a Canada Revenue Agency (CRA) audit, but they cannot prepare the audit reports.
2. Tax Preparers
Tax preparers are unofficial consultants who assist individuals and businesses with their taxes. These tax preparers are people who have a fair knowledge about taxation, and who use it for the limited period of taxation season by helping businesses. They charge a very minimal fee, which makes them a cost-effective choice for some small businesses. Since tax preparers are not officially recognized consultants, they cannot represent you during a CRA audit.
3. Certified Public Accountant
A certified public accountant (CPA) is an accountant who has done an extensive study in the field of accounting and is a certified accountant that is recognized by the CRA. A certified public accountant provided comprehensive accounting services including tax planning. A CPA can not only help you in your complete tax planning and filing but also represent you during CRA audit and prepare audit reports.
4. Tax Attorneys
Tax attorneys are lawyers who also manage taxes and tax-related cases. These professionals may help their clients in preparing tax returns, but they cannot perform audits. However, tax attorneys have the authorization to represent their clients for both audits and tax-related court hearings.
5. Accounting Faculty
A college professor who has himself acquired a degree in accounting and now teaches accounts instead of practicing accounting may also consult people on taxes. They may help people prepare their taxes and can also represent individuals for their tax audits. Accounting faculty may help you with your taxes for a nominal fee.
6. Certified Financial Planner
A certified financial planner can only help their clients in tax planning. They cannot take care of audits for their clients.
How to find Tax Accountants
Though you have various options when it comes to hiring a tax consulting professional, you need to choose the best one to meet your specific needs. But the question is where can you find an experienced and qualified tax accountant? Well, here are some places where you can start your search from:
1. Online Directories
The very first and the most hassle-free method of finding accountants is by looking them up online. Google search can find you anything, including tax accountants near you. The very first directory to check is the Google Business Profile, formerly Google My Business, suggestions made by the search engine. You should also check out other local directories such as Yelp. These directories not only help you with the contact details of tax accountants but also user reviews of how their service is. This will help you in making the right choice in selecting a tax consultant for your business.
2. Personal Connections
People you know may help you find a reliable tax accountant. You should ask your friends, colleagues, and other people in your social network for recommendations of tax accountants they have worked with. They can give you complete feedback on how their experience was and what problems they experienced when they worked with the tax accountant.
Things to Check When Hiring
When you shortlist a handful of tax accountants to choose from, there are a few parameters to check before you decide whom you want to hire. These include:
- Anybody can have a bad record that they may be hiding from you, and so can your tax accountant. Before you hire, always run a background check by talking to the tax accountant’s previous clients to find out more about them.
- Next, you need to verify if the accountant holds the right qualifications and certificates to practice the process of tax filing. You need to check if the account holds the PTIN (Preparer Tax Identification Number).
- You also need to find out how much experience the tax accountant has in filing taxes as that will show how much knowledge they hold and how updated they are with the latest rules.
- Finally, you need to find out what the tax accountant will charge for their service. Based on the fees you will be able to decide if the accountant falls within your budget.
Tax filing season may seem like a stress-filled time, but it really shouldn’t be. In fact with the right tax accountant by your side, the tax filing season will pass with ease.
ATS Accounting & Tax Edmonton has experienced tax advisors who will help you with your business’s tax planning, filing, and tax audits. Our team of dedicated experts knows the specific risks you may face and help ensure your business is protected.
Ready to get started? For more information about our accounting and tax services, book your free 15-minute consultation by calling us at 780-484-4006 or contacting us online.
