Do you need a tax preparer or tax advisor?
As tax season approaches, almost everyone (I hope) is preparing and scheduling appointments to prepare and file their tax returns. Good for you. With the speed and convenience of retail franchises like HR Block and Liberty Tax or even free online software, most people don’t have to worry too much about where or how they’ll do their taxes before the filing deadline. . But then there are those who dread tax filing season because:
- Have more than one source of income such as having a two-income household;
- They operate a business;
- They earn a lot of money;
- Have more than one type of income, such as wages from a job, income from a side business, retirement income, or even investment income;
- They have personal or business assets that they might have sold or given away during the year.
So… what do these people do? Better yet, which is better:
A tax preparer or a tax advisor? Let’s discuss…
a trusted advisor
Although most preparers are reliable, they are available primarily during tax season (January through April). For those who work in retail tax franchises, they work part-time and have limited access beyond the time they prepare taxes. Tax consultants are generally available year-round because tax preparation and consulting is their full-time business. Another advantage of being available year-round is that you can consult with tax advisors about transactions that could cause you to pay too much or not enough in taxes.
Deep Knowledge of the Tax Code
Generally, the norm is for consultants to have a thorough and thorough understanding of the tax code. Most of them have professional credentials such as Enrolled Agents (EAs), Certified Public Accountants (CPAs), or certifications obtained through accredited programs such as the National Tax Training School and other vocational institutions. Additionally, they typically have gained many years of experience, either working with clients or through previous jobs related to tax preparation or consulting. Why is this important? It is not to sound like a tax nerd and speak in jargon that is too difficult for anyone to understand. Absolutely not. Unlike preparers (not all, but most), consultants rely on their knowledge of the code to offer strategic options to lower your tax bill legally and fairly. Plus, this saves you time because they can often locate the necessary reference in the code to take a certain deduction or exclusion without much effort or research.
If you’re looking for speed, convenience, and the lowest price possible, then definitely make a plan at one of the retail franchises or maybe even complete your return online yourself. However, if you’re looking for a trusted advisor with in-depth knowledge of the code who is available year-round, choose a tax advisor. You will not regret.
