Why Your Tax Accountant isn’t Worth Enough
While, over an extended period, the filing of taxes have been thought of as mere as a black and white thing by many, tax accountants have championed in revealing its values that lie in the grey areas. It has thus resulted in the irrational and unprofessional filing of taxes by enrolled agents as well as tax partners, although tax accountants are the best fit for the job.
Despite the fact that tax accountants are preferred over tax partners and enrolled agents, they dearly charge small business owners as well as those with complicated tax returns for the services they offer. Ideally, tax accountants are tasked to file your tax returns alongside planning and to plan strategic taxing for your business. Otherwise, you’re not getting the real value of money spent hiring these individuals. It is thus ideal to determine whether the tax accountant you hire is productive to your business or you’re just wasting your money hiring them.
The rundown below elucidates why your tax accountant isn’t worth enough to do your filing of taxes:
Unqualified tax accountants:
simply put, a Certified Public Accountant must have a Bachelor’s degree in accounting, management or finance! Moreover, they ought to have taken a series of auditing and attestation, principles of business management, financial accounting, and reporting as well as regulations exams. Better still, qualified tax return accountant near you must undergo 120 hours of continuous training in every three years. Besides the above academic qualifications, they must have had an internship under the supervision of a practicing CPA for a defined period.
Your CPA must have an updated license. For you to verify this, you have to search for a tax return accountant near you from the list provided by the accountancy board of your state. Hiring anyone without such features and qualifications is the greatest undoing you can do to yourself.
Lack of strategic planning and advice:
Basically, when you hire a tax accountant, you’re ideally paying for their professional and strategic plan and guidance. It is common knowledge that computers and its complementary software can do the filing of taxes, even more, accurate that human tax accountants. For this matter, tax accountants must not limit their communication with you during charge, constant contact with you and your business is necessary. Tax accountants will be worth your resources and employment if they offer strategic advice and planning. They are obliged to advise you on how you should monitor your investments as well as updating you on any changes in the regulation of taxes by the government. If they aren’t doing so, then you must be wasting your resources on them.
The truth is, CPA’s are entrepreneurs, and they aim at increasing their income. It thus makes them consider all possible mechanisms that increase their revenue, and this has led to a paradigm shift in their past practices. To be specific, tax accountants no longer refer businesses to financial planners or insurance agents, they take up the jobs! Legally, CPA’s earn their money out of the challenging work they do alongside investment advice they issue. However, they have been levying commissions, they term as “layering fees,” whenever they sell the very investment products. In the process, they earn twice; the investment advisory fee as well as the sale of the investment commission.
So, is your tax accountant worth enough to serve you?