How To Be A Tax Advisor

Education and An Ear to the Grindstone (Part I of II)

This time of year, things can be hectic to say the least. As a tax preparer you are open as early as you can be and stay open as late as possible to try and fit, or get those potential customers coming in to get their taxes done. In the tax season, it feels, and is possibly the case, that we are “burning the candle at both ends”.

The money you may make as a tax preparer is fantastic, to be earning in four months what most people earn in a year! You work hard you should get paid what you’re worth! But have you ever wondered, “How can I extend these wonderful relationships I have once a year with my client businesses into a yearly earning tool?” How can you turn what you have in 4 months and be able to stretch out your earning potential throughout the whole of the year?

Universal Accounting has the answer. Be their Tax Advisor. “How do you do that?”, you may ask. Very simply stated, keep yourself educated, and your ear to the grindstone. A tax advisor is a financial expert trained in federal and state tax law. As a tax advisor you usually would be required to minimize taxation, to help business owners in learning the details of tax law in complicated financial situations to benefit their business and bottom line. As a Tax Advisor you need to:

1. Communicate exactly with your customer what your purpose is for his/her company. Determine what the client’s expections are for and use of the your professional advice. They must have a clear understanding of the form and scope of the advice or assistance you are offering.
2. Establish the facts of their situation. Determining which facts are relevant, and evaluate the reasonableness of any assumptions or representations to any state or federal tax law (including potentially applicable judicial doctrines) to the facts. You show what your worth when you can arrive at a conclusion supported by the law and the facts.
3. Advise the customer how this will affect their business and activities. For instance, whether a taxpayer may avoid accuracy- related penalties under the Internal Revenue Code if a taxpayer acts in reliance on the advice.
4. Lastly you must act fairly and with integrity in practice according to the tax laws set forth.

Keep Educated
You already know a good portion, if not all, you need to know about the client business you want to have a yearly business relationship with and you have their trust and access (at least once a year) to their books. You can go deeper into the research of the industry your client is in, and the tax breaks, or duties they are expected to have or pay to the state in which you live in or to the IRS. Most owners simply do not have the time to do this, and would gladly place that responsibility into capable hands.

State Tax Law
Each state or province you live in will have their own set of regulations and laws that companies in different industries have to abide by. Search out the online, or the hard copy edition from your state tax commission. Have them bookmarked and easily accessible for any questions that may arise. Get to know them so that you have an answer readily for the owner once he asks your advise; better yet be looking for those tax breaks that can do him good now and will keep your business relationship a postive one.

Federal Tax Law
Same goes for the federal tax information as it does for the local level. The IRS.gov site is stuffed full of items you need to stay on top of and which will be most valuable when you do your monthly tax meeting with your client. Be on top of the reporting requirements of earnings for your companies, and get them the timely advise and service they need throughout the whole year.

Tax Information
You probably do this already, but anything that has to do with taxes, any articles, any news releases, and legislative actions that pertain to taxes search them out! You should be learning, and keeping yourself “in the know” with the latest that’s happening. Keep yourself and your tax advising position relevant.

The best way to keep yourself educated is to get to know the prime examples of what a healthy company should be doing in regards to their taxes. Having a program, that trains you in the intricacies of small business tax preparation as Universal is offering in their Professional Tax Preparer Certification is vital to your education process. Know what to look out for! You’ll be able to put into practice what you learn in the Professional Tax Preparer Certification as a valued student and get the practical application before you contract with those you do business with January through April. You can turn that once per year interaction (and money) into a once per month advising relationship (with the additional money that comes with it!).

Next week: We will detail what you need to do to keep your Ear to the Grindstone to be that effective and productive Tax Advisor for those companies that you have already developed a tax business relationship. Be looking for the next edition!

Are you ready to take the next step in the process you have started in the accounting field? Are you tired of coming across those times when you know you could have done better if you just had the training in this or that aspect of the accounting, bookkeeping process? If only you had a way to learn how to market your accounting practice from an accountant who has been successful?

Be the Profit Expert Professional for Small Business! Don’t hesitate another day in getting the Accounting and Marketing Training that makes the difference. Click here to get more information on what you need to know about becoming the Profit Center Expert for small business accounting and tax!

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