During tax time you may be wondering if you need a tax consultant for your personal taxes or business. Tax consultants sound like fancy jobs that only big wigs can afford. However, we also operate on a level that the average person can access. Below we will answer the question on whether or not you need a Houston tax consultant.
1. What Does a Tax Consultant Do?
Tax consultants are professionals who help their full or part time clients minimize their tax debts and increase their profits. They may often have more experience than a corner store tax preparer especially if they specialize in certain businesses. Some consultants let you know they specialize in providing services for specific types of client, such as a family tax, corporation tax, certain industries, etc. Tax consultants may run their own business, work for a tax consulting firm, full time for a large business, and they can even work in public agencies, nonprofits, and even for tax offices themselves.
2. How Does a Tax Consultation Work?
If you believe you may need a tax consultant, you may schedule an appointment with them after your initial phone call. Each meeting is different but generally involves:
- Review of incomes, expenses, and tax documents.
- Identifying any credits and deductions the client may be eligible for.
- Assisting in complex taxable income such as capital gains, rental income, inheritance, and others.
- Use of retirement planning to minimize tax burden.
- File taxes and prepare tax returns while making recommendations for items such as estimated payments and other simplifications.
3. Tax Consultant Vs Tax Preparer
Most tax consultants are capable of preparing tax returns, although some choose not to. However, many tax preparers work part time during this time of the year. This allows them to only focus on the work once a year. They may know how to itemize taxes and other semi-complex tax tasks. However, many tax preparers have limited knowledge on how to look for, find, and correctly apply for many deductions and credits you may qualify for. A tax preparer is the correct choice for simple returns. All others should use a professional tax consultant for their business taxes and complex individual or joint returns.
4. Tax Consultant Vs Bookkeeper Vs Accountant.
Bookkeepers are tasked with staying on top of all your income, expenses, and keeping your books up to date. They can also be used to prepare taxes. However, some bookkeepers have been doing the task of prepping books and taxes long enough to have decent to exemplary knowledge in tax consulting. Accountants are similarly trained. However, Certified Public Accountants (CPA) have specialized training in certain areas. Use the one or ones that best fit your needs.
Get a Houston Tax Consultant
Still confused? Do you live or do business in the Houston area? Feel free to contact us to see if you can utilize the services of our Houston tax consultant, Mike, and his decades of experience.