A tax advisor does much more than just file your tax returns—they can help you save money, optimize your tax strategy, and keep you compliant with ever-changing tax laws.
Finding the right one, who will treat you like a trusted partner and advisor, is important so you can navigate the complexities of federal, state, and local tax laws while saving you money.
What to Look For in a Tax Advisor
1. They Understand Smart Tax Strategies
A good tax advisor works with you year-round to identify ways to minimize your tax liability while ensuring that you’re making the most of available deductions, credits, and incentives. These include:
Deductions: Maximizing deductions, which can include things like, home office expenses, business travel, professional fees, marketing expenses, and more—reducing your taxable income.
Retirement Savings Plans: Setting up retirement savings options, like SEP IRAs or Solo 401(k)s, that allow you to save for retirement while reducing your taxable income;
Depreciation of Assets: Guiding you on how to depreciate assets if your business owns property or equipment;
Tax Credits: Identifying and claiming tax credits, such as Research and Development (R&D) tax credits or credits for energy-efficient improvements, that reduce the taxes you owe.
2. They Help You Plan for the Future
A good tax advisor doesn’t just look at your current tax situation; they help you think long-term.
Tax planning involves forecasting future income, expenses, and potential tax liabilities. This helps you make strategic decisions that could significantly reduce your taxes later on. For example, if you’re planning to sell a business, retire, or make a significant purchase, a tax advisor can help you structure these moves in a tax-efficient way.
3. They Know How to Navigate Complex Tax Laws
Tax laws are constantly changing, and it can be challenging to stay on top of all the new rules and regulations. A tax advisor ensures you’re always up to date with the latest tax code changes, so you don’t miss out on any potential benefits or, worse, make a costly mistake.
4. They Minimize Risk and Stay Compliant
Nobody wants to end up on the wrong side of the IRS. A smart tax advisor ensures your business complies with all tax laws and regulations. This means filing accurate returns, keeping up with deadlines, and avoiding potential red flags that could trigger an audit.
If you’re ever audited, your tax advisor is in your corner. They can represent you in front of the IRS, answer questions on your behalf, and help resolve any issues quickly and efficiently.
5. They Reduce YOUR Stress During Tax Season
Tax season can be stressful, especially if you’ve got a complex business or multiple income streams. Working with a tax advisor can take that stress off your plate. They’ll organize your finances, make sure all your records are in order, and file your returns accurately and on time—so you can focus on running your business.
A tax advisor isn’t just there to crunch numbers—they’re a strategic partner who helps you manage your business’s finances in the most tax-efficient way possible, including tax efficiency, tax deferrals, entity structure, wealth transfer, and succession planning.
Hiring a tax advisor is one of the smartest moves for your business. Hiring the right one is even more important. From helping you save money through smart tax strategies to ensuring compliance with complex tax laws, a tax advisor is an essential partner in your financial success.