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2020/10/15

HOW TO FIND A TAX ADVISOR SUITABLE FOR YOUR BUSINESS?

Tanvi Fal Dessai

Tax time is both challenging and exciting for every company. The corporation’s annual tax return gives useful information into sales and spending and yearly progress.

The tax advisor is an accounting specialist who specializes in complicated tax code and uses this experience to help taxpayers reduce their tax burden. Let us start with details about locating an effective tax advisor for your business in Dubai. 

A competent tax advisor will tax your company and advise you on the composition of your company. Choosing the best tax professional is essential.

Since small business owners have plenty on their hands: to take care of their customers, suppliers, and merchandise, it makes sense to hand off taxes and related things to someone who knows the rules and can keep you out of trouble.

Let’s face it; we don’t know what we don’t know. 

Now, how to go about finding the right tax advisor for your company?

DEFINE YOUR COMPANY’S NEEDS

1. Assess the fields of practice of a tax advisor:

Some company owners only need assistance with their taxes. Other company owners need guidance on setting up a business organization, maintaining accounts, identifying payroll taxes, and possibly representing them if tax errors have been committed along the way.

There are several ways a tax advisor can support you and your company. A lot of small businesses need someone to take care of their taxes.

You may need assistance with tax preparation with your company, which involves working closely with a tax specialist rather than a decline or a shift in profits and expenditures once a year. There are also other needs.

2. Assess the volume of work and the frequency of work for a tax advisor:

When determining who you want to recruit and what role your business taxes would play, you also need to determine how much work you have with that employee. Initially, you might be the one who uses QuickBooks, Quicken, or other small business software to track your profits and expenditures. If you find yourself doing more and more in the tax domain rather than taking care of consumers or clients, you may want to consider hiring an accountant.

Most small businesses should have a trustworthy individual or accounting firm that can advise and take care of taxes and tax issues. 

UNDERSTAND WHAT YOU NEED 

Knowing what you and your company require is the most critical aspect of securing an accountant.

One way to get the kind of help you need with your company is to ask other small companies what kind of programs they use. Another approach is to ask several tax experts to see what sort of facilities and support they can offer, how they are paid, and whether they are seasonal or year-round.

A STEP-BY-STEP PROCEDURE FOR SEEKING & HIRING A SUITABLE TAX ADVISOR

By asking other companies of the same size as yours, you could get some information about tax advisors who are local, friendly, supportive, and even less pricy. Don’t quit there, though. It’s a successful first step, but there’s so much more to the company than to the eye; it’s taxes, properties, staff, products, and services.

If you ask a company who does just what you do and does so in the same manner, there might be significant variations in the tax implications.

1. Choosing Well

The terminology can be confusing. It is essential to know the difference to make an informed decision before you hire. Do you just want to hire a tax advisor or do you want to hire an FTA approved tax advisor?

2. External Versus Internal Tax Advisor

As a company owner, another choice is whether you need or like someone external or internal to your company to counsel you about your tax responsibility.

An external tax adviser or accounting firm will assist you with the planning of your taxes. An external tax adviser may also help in reviewing financial statements and the settlement of economic issues. Although an external accountant might be expensive, he/she is worth the money because he/she will give a professional look at your company finances. If you recruit right, the company’s external accountant can save money over time.

As a company owner, the question arises as to what is the right time to hire an external or internal tax adviser or accountant? There are a variety of factors, the first of which is the scale of the company. If the company is small and you or anyone is willing to do the accounting of remote business software regularly and simply require tax planning, external is a reasonable option.

If there are sales, acquisitions, or tax preparation issues that may benefit from scrutiny, an outside accountant or accounting firm is entitled to do so. It is likely that as you expand your business, your tax preparer will note that you need more accountants than once a year to file a tax.

3. Hiring Someone with Whom You Can Work Well

You pay for the service: make sure you’re happy with the accountant you employ. You should have a healthy relationship and be able to develop confidence with the one you hire to do your finances for you and your company.

Bigger Isn’t Always Better.

Hiring a big corporation to do the accounting might sound like a smart idea because you’re going to get several professionals with considerable expertise and experience. Although this is valid, whether you are a small business or one that does not have complex tax and accounting problems, you might be paying for services that you do not use and may not need. If you do your homework and choose the best firm or person, you will save your company money in terms of both fees and taxation.

4. Don’t feel too comfortable with it.

Once you’ve found a licensed accountant who you believe in managing your taxes, it’s essential not to stick with them all year long, purely out of habit. If your company is rising or has a complicated structure, the benefits of a specialist familiar with your company’s business can outweigh considerations such as a lower price.

However, it is also vital to ensure that the tax professional is educated on tax policies and tax audit assurance that they are prepared to manage changes in scale as its corporation expands or employs new staff and contractors.

If there’s ever been so many tax policy changes or changes in your company’s industry a year, it might even be time to adjust your tax advisor or have a talk with your new advisor about what to expect.

5. Use Your Gut

Whether the accountant you encounter makes you feel inferior or stupid, the relationship will get off to a bad start. Be sure that the accountant can negotiate how much you need to consult or share details. Establish how you’re going to interact. Often, inquire if you’re going to communicate with him/her or if there’s going to be a staff member involved in your services. If so, please ask to meet that person. You’re going to want to build a connection with them as well.

Trust your gut after your first encounter. If you were worried, alarmed, or inferior, you would need to hire someone else. You don’t want to recruit someone believing that the communication will improve. If the company is too busy to be supporting you, they are, so look elsewhere.

CONCLUSION

Choosing the best tax specialist feels like a difficult challenge. It’s necessary to make a careful decision. Ask people who they are appointing and their level of satisfaction. Meet different people. Determine the sort of support you seek and how much you seek help. If you are a small business, an external accountant will help. 

Whatever you do, do some research. Preparing before recruiting will help you secure someone who can save you and your company money in the course of your relationship.

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