How to Choose a Tax Pro
Switching professional service providers is never an easy thing, and should not be taken lightly. The wrong person won’t add value, and finding the right person can add tremendous value as part of your team.
Ideally, your tax advisor would also be your tax preparer. Before choosing your provider, you need to decide your priorities relative to this role. Tax priorities beyond basic compliance may include: proactive savings, reducing audit risk, finding special tax credits, etc. This person should be passionate about client service and willing to dig in to get to know your situation as well as your goals. They should also be fully versed in tax law, they should consider the entire hierarchical world of tax law as full of opportunities, and use grey areas and creativity in your favor. They should want to educate you to help you reduce your taxes as you take actions throughout the year.
Here are some questions to ask prospective tax practitioners to see if they meet these criteria:
Are they a CPA in good standing? (we think great CPAs add great value)
How do they like to approach and structure work with their clients? (contact frequency, etc)
How do they like to pass information back and forth?
Ask for an example of how they identify opportunities to share with clients, and the last time they did so - what was it? (You want an advisor and value-add practitioner, not a compliance-driven form filler.)
Get clear on the fee structure.
What experience do they (or their firm) have with your unique situations? See how deep they probe and what things they find (The more they understand your situation, the better able they will be at finding tax savings)
Do they seem excited about educating you?
Lastly, my litmus test: ask yourself “Would I want to have a drink with this person?” Never underestimate the importance of hiring practitioners that you actually want to talk to.
Notice who asks more questions, and who is listening more. If they're asking all the questions and listening and taking notes, they are more likely to be looking out for you and what you really want.