Tax consultancy services are available to help businesses deal with property taxes, federal taxes, payroll taxes and more. While most businesses use accounting software or hire certified public accountants to handle these tasks, they’re not ideal solutions. Software can’t always accommodate complicated tax laws and general accountants might not be cost-effective. Tax consultants are often an excellent choice to assist businesses with their tax-filing needs.
Choosing the right business tax consultant is crucial. We’ll examine tax consultant pricing models and share what to consider when working with these valuable financial professionals.
Tax consultant pricing models and costs 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 is required to process your taxes.
Here’s a look at various tax consultant pricing models and fees:
Remember to take your time when choosing a tax consultant and only hire someone you’re comfortable with. If you need help with taxes for a specialized business, find tax consultants with a background or special interest in your line of work.
Self-employed individuals have unique tax concerns. According to the IRS, the self-employment tax accounts for 15.3% of your gross income — 12.4 percent for Social Security tax and 2.9 percent for Medicare tax.
Some businesses will benefit from using a tax consultant to advise them before investing or if the tax laws related to their industry have recently changed. Other businesses with complex structures may find it helpful to have a tax consultant on retainer. Either way, here are some ways a tax consultant can help:
If you’ve decided 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 valuable information for your business. Tax consultants are more than “numbers people.” A good consultant will understand what those numbers mean for your business and communicate this information to you.
As you interview potential tax consultants, consider asking the following questions to ensure you select the best professional for your business.
Ensure your tax consultant understands your business type and industry. For example, if you own a restaurant, you have specific restaurant accounting issues and must deal with rules regarding tips and wages. If you own a construction company, you must deal with subcontracting issues.
Find a tax consultant who has worked with other businesses like yours and knows about the ins and outs of your industry.
Regardless of their years of experience, most tax consultants have basic knowledge in the field. However, choosing a tax consultant with several years of experience in an established firm is usually best. Comprehensive experience demonstrates that they have a wider breadth of training and generally greater knowledge of handling business taxes.
A professional tax consultant should be willing to stand by their recommendations and work if you’re audited. If a consultant 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.
When you work with a large tax consultancy firm, there’s a chance more than one person will work on items relating to your business. It’s crucial to ask who your point of contact will be and ensure you’re comfortable with the person who will be advising you. If more than one person will work on your business’s tax concerns, ensure you’ll always be assigned to a knowledgeable professional well-versed in your specific business type and industry.
Small tax mistakes can lead to big headaches for small business owners. Hiring a reputable tax consultant can save time and help you avoid costly fines. You won’t have to stay on top of changing tax regulations and complicated tax codes, and you’ll receive valuable advice to safeguard the future of your business.
The money you pay for a tax consultancy will vary according to your needs, business, location and industry. However, it’s a worthwhile investment in your company’s future.