If you have your taxes prepared professionally by an accountant, it's going to cost you about $200, not a small amount of money. However, can you afford not to have this done?
Most people miss at least $100 in deductions, perhaps more. If you don't have an accountant, it's going to cost you a lot in missed deductions and extra money paid to Uncle Sam.
Now that you know you should hire an accountant, here are six suggestions that can help you pick the right one:
1. Interview your accountant in person]. A big chain will not give the same attention, so avoid these. You might also need your accountant at some other point in the year. Typically, big chains hire extra accountants from January to April only. During off-season, you'll not likely to get the same attention, so it's going to make asking any questions frustrating and inefficient.
2. A big chain is going to cost you more in the end than an individual accountant will. Yes, big chains look like they charge less up front, but the fine print tells you that they can charge extra fees, such as for each deduction. They can also charge you to guarantee the accuracy of your taxes. An accountant you hire yourself will both guarantee the work done with no extra charge, and will give you better and more personal service for less money.
3. Check accountant credentials. You'll need a licensed professional to handle your taxes. This is because only a tax lawyer, CPA or EA can represent you in court. Most states (except for California or Oregon) don't require any specific licensing for anyone who is a "tax professional." Therefore, the person who did your taxes may not be able to represent you in court. Make sure your accountant has the proper credentials and can represent you in court if necessary.
4. Ask for references and referrals. Just as with your doctor or dentist, ask friends and family for referrals. It's one way to help guarantee that you'll get good service and will be satisfied with the results.
5. Service. It's important and it should not be underrated. Minnesota Nice should apply to every tax preparer. If your calls are not returned, if they are rude, if they don't have time for you, if they are not professional then walk out the door. Taxes are uncomfortable enough without the pain of poor customer relations, so find someone who consistently has the time and effort to work with and for you.
6. Be reasonable with your expectations. If you're not financially responsible or your records are a mess, your accountant can probably do only so much for you at tax time. Your accountant's performance depends in part on how organized and responsible you are yourself. Therefore, if you present your accountant with stellar records, expect pristine work in return. If you present your accountant with incomplete records or otherwise shoddy material, you should still expect the best performance possible, but it probably won't be perfect. Do take their advice if you're comfortable with them and trust them. They just might make your taxes easier the next time, too.
