What to Look for When Hiring a Tax Preparer for Your Solo Business

If you’re a “solopreneur” – someone who runs your business without partners or employees – you likely still appreciate a team. Just because you’re the only name on your business doesn’t mean you have to do it all by yourself. It’s important to understand when to ask for help, and how to find the right expert who can keep your business moving forward. When it comes time to finding a tax preparer, doing your research can help you find the perfect team member. 

Strong credentials

Any tax preparer you trust with your business should be properly certified and come with strong recommendations. There are different kinds of tax preparers, including CPAs, tax attorneys, enrolled agents and registered paid return preparers. Each title comes with its own certification process and level of expertise. Whomever you choose, it’s important that the person can demonstrate how they are keeping up with current tax law. 

More important than what you learn from the tax preparer is what other people have to say. Ask your friends if they can recommend someone. If you’ve located someone you like, ask to speak to other clients. A great tax preparer comes highly recommended. 

Experience with solopreneurs

When it comes to finding a tax preparer, you want someone who has experience handling businesses like yours. For example, many CPAs are trained to manage corporate clients. Your business’ taxes will be handled through your personal taxes, so you want to find someone who is well versed in both. A great tax preparer will know the most recent regulations regarding what you can claim for your business and how to find the best deductions. 

Helps you understand your situation

You don’t have to memorize the tax code, but a good tax preparer will help you to better understand your situation. They will walk you through what needs to be done for your business type and how you can plan accordingly. If the tax preparer can’t explain what they’re doing, then they may not understand the situation themselves. A good tax preparer can explain things in a way that helps you understand where your money is going, what it means for your business and how you can stay on the IRS’ good side. 

Offers year-round support

You may be learning this lesson the hard way, but it can be tough for solopreneurs to keep track of their business records throughout the year. You’re busy building a business, not an archive! A great tax professional will help you to sort through what you have from the previous year and create systems that will keep you organized all year. They can recommend a good software program and create a plan for regular check-ins to make sure that your business remains in compliance so that you’re ready for next year. 

Your tax preparer is ultimately a partner in your business. Even if their name isn’t on the letterhead, they can become a trusted advisor in helping you grow. The financial professionals at MCG Solutions are eager to help. Contact us today to learn more. 

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