Considerations When Hiring A Tax Accountant

Posted on: 23 January 2023

Tax accountants are a vital aspect of any business. Ideally, these professionals assess your business operations and ensure you meet your tax obligations. If you intend to hire a tax accountant, below is an interview guide to help you choose the right-fit tax accountant. 

What Are Your Credentials?   

Most accountants have an accounting diploma or degree. However, you should assess the accountant's credentials to establish whether they have the "IT factor." For example, some accountants have accreditation from renowned accounting associations. Such certification guarantees that the professional has in-depth knowledge of the taxation laws in your locality. Some accountants also take professional development courses that make them industry leaders. Some accountants also take information technology courses that equip them with the skills and expertise needed to work with modern accounting software. 

Do You Have Any Industry-Specific Experience? 

If possible, consider accountants with some experience in your industry. Remember, taxation laws differ across various sectors. An accountant who has worked with similar businesses is best placed to determine whether you meet your taxation obligations. Moreover, the tax accountant can examine your operations and advice how you can reduce tax. For example, the accountant could ask you to import your raw materials from countries that have bilateral trade agreements with your country. 

Moreover, the tax accountant could create innovative strategies to reduce your capital gains tax. For instance, having a dwelling in your business premises exempts it from capital gains tax. Alternatively, you could use a mortgage offset account to reduce taxes. The tax accountant also ensures you file your taxes on time to prevent penalties. If you have an issue with the Australian Tax Office, your tax accountant negotiates flexible repayment terms. Moreover, they could argue your case to prevent harsh penalties. 

What Are Your Working Conditions? 

From the onset, you should be clear about the accountant's working conditions. For instance, do you need a permanent or part-time tax accountant? If you need a part-time tax accountant, ask about the number of hours that they will work every week. Moreover, ensure that the accountant has professional liability insurance. This way, you can claim compensation if your business suffers losses due to the accountant's incompetence or misadvise. Conduct due diligence to determine how other tax accountants price their services. It gives you an advantage as you negotiate the accountant's salary. Nevertheless, do not shy off from paying a high salary if the accountant offers high-quality services. 

To find out more, contact a company like Edge Hill Accountancy.


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