Your Guide to Successfully Hiring Small Business Tax Accountants

Did you know that 77% of small business owners say that federal income taxes are highly burdensome? If you had to file federal business income taxes, this number probably wouldn’t surprise you.

Paying taxes isn’t as much of a problem as the administrative headaches.

It makes sense to outsource taxes to small business tax accountants. They understand tax laws and how to limit your tax liability.

Most importantly, the best small business tax accountants file taxes accurately and on time.

If it’s time to hire a small business accountant for your company, keep reading. You’re about to learn what you should look for when hiring business accountants.

  1. Your Business Needs

Think about what you need from a business accountant. You might need someone to file taxes once a year. If your business has employees, you’ll need someone to file payroll taxes and income taxes.

They might be able to provide insights if you’re planning to purchase another business.

  1. Certified Public Accountant vs. Accountant vs. Bookkeeper

What’s the difference between an accountant, bookkeeper, and CPA? An accountant is someone who went to business school or has an accounting degree. They’re able to prepare your taxes, but they can’t communicate with the IRS on your behalf.

A Certified Public Accountant meets the strict licensing requirements in your state. The CPA designation is given by the American Institute of Certified Public Accountants (AICPA).

Bookkeepers assist small businesses with basic accounting tasks. They’ll reconcile accounts, enter data, send invoices, and sometimes make collections calls.

There are also business law attorneys. Their expertise is essential when you’re setting up a legal business entity.

That’s because the structure of the business has tax and legal implications with state and federal taxes. Take a look at this article on to find out more.

It’s helpful to understand the types of professionals out there to find the best one for your small business.

  1. Industry Experience

It’s advantageous to get a business accountant that has expertise in your industry. An ecommerce business has to pay sales taxes.

The law is murky as to whether or not you need to pay sales taxes in other states or not. Small business accountants that specialize in ecommerce can help you clear that up.

In real estate, there are deductions and tax deferments that you may qualify for. An accountant that works with real estate investors will help you.

  1. Accounting Processes

An accountant’s processes should align with your current business systems. Make sure they know your accounting software and can work with it.

What are their processes for filing taxes? The best accountants have a method to verify the information to ensure accurate tax returns.

Hiring Small Business Tax Accountants

When it’s time to hire small business tax accountants, you have to find the right fit for your business. Look for accountants that have the industry expertise and background to help you.

Now that you know how to find a business accountant, take a look at the Finance section for more financial tips.