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Pricing and Costs of Tax Consultants

business.com editorial staff
business.com editorial staff

Find tax consulting services that fit your budget.

  • Owning a business means you will be responsible for a wide range of tax-related issues, so you'll need a reliable, experienced tax consultant within your budget.
  • There are several things to consider when hiring a tax consultant, including their experience in your industry, loyalty and ability to address all of your concerns.
  • The fee for tax consultant services depends on various factors.

Many types of tax consultancy services are available for businesses. Some of the most common are consultants who handle property taxes, federal taxes and payroll taxes. Most businesses use software or accountants to cover these tasks, but software cannot always handle complicated tax laws. In addition, accountants can charge more money than you would pay a tax consultant in certain circumstances.

No matter what type of taxes you need help preparing, choosing the right business tax consultant is an important step. Pricing models and costs of tax consultants depend on many factors, including the type of tax consulting your business needs, whether you hire a tax advisor for a single job or as a full-time consultant, and how much work your business has to do to fully process its taxes.

Things to consider before choosing a tax consultant

If you have decided that it's time to find a tax consultant, you'll want someone who can avoid potential problems with the IRS, save you money and provide you with useful information for your business. It's common to think of tax consultants as simply numbers people, but the right consultant will do much more than simply figure the numbers. A good consultant will also communicate what the numbers mean to you. During the interviewing process of choosing a tax consultant, here are some questions to ask that will help with your decision.

1. Do they have expertise with other clients in areas that are relevant to you?

Make sure your tax consultant understands your type of business. For example, if you own a restaurant, there are specific rules regarding tips and wages; if you own a construction company, you deal with issues around subcontractors. You will need a tax consultant who has worked with other business like yours and has knowledge about the ins and outs of your industry.

2. How many years of tax experience do they have?

Although most tax consultants, regardless of their years of experience, have basic knowledge in the field, choosing one with a large firm who has several years of experience is usually better. This demonstrates that they have a wider breadth of training and generally have greater knowledge for handling business taxes.

3. Will they represent you if you're audited?

A professional tax consultant should be willing to stand by their recommendations and all work they do for you in case you are ever audited. If a consultants you're considering is reluctant to engage or say they'd represent you in these cases, it's probably best to move on to another candidate.

4. Will more than one consultant be handling your business?

When you work with a large tax consultancy firm, there is a chance more than one person will work on items relating to your business. It's important to ask who your point of contact will be and to make sure you are comfortable with the person who will be advising you. If more than one person will be working on your business's items, make sure you will never be assigned someone to talk to who isn't knowledgeable about you and your specific type of business.

Tax consultant fees

The fees you will pay a tax consultant depend on a variety of factors.

  • Contingent fees: It's important to choose the right property tax consultants for your business. Many tax consultants work in conjunction with lawyers to handle questions and concerns about tax issues, and also to take legal action on property tax issues when necessary. Many property tax consultants charge contingent fees, plus a small standard filing fee, for any issues or complaints. Contingent fees can be 10% to 25% of the total settlement.

  • Online tax consultant: A tax consultant who works exclusively online can be convenient for businesses, but there are some drawbacks. On the one hand, working with a tax consultant online is the quickest way to get answers to your tax questions. On the other hand, consultants who work exclusively online do not have direct access to you or your company. It is a cost-saving option if you are on a budget, saving you anywhere from $25 to $1,200, depending on the amount of contact you have with the consultant.

  • Customized consulting: Hire tax specialists who can customize their services to your business. Tax professionals who consult on many tax issues tend to take the same approach to many situations, but if you want the best service for your business, look for tax consultants who can customize their services to better help your business. Custom consulting typically costs $2,000 or more per year. Remember to take your time when choosing a tax consultant and only hire someone you are comfortable with. If you need help with taxes for a specialized business, find tax consultants who have a background or special interest in your line of work.
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