5 Tips for Choosing a Tax Preparation Firm

A tax preparation firm can be a good move for you. Most people do not enjoy doing their taxes and are not comfortable doing it since it is simply an annual event. Using a tax preparation firm can help save you money and time since the firm is experienced in this particular endeavor because of how many returns they file each year.


As with any service that you will use, ask about the fees upfront. You want to choose a thorough tax preparation firm which will not charge you an arm and a leg. Fees can differ but it may be a flat fee depending upon how complicated your return is. You may simply ask what the range of fees is and you could be more specific explaining your situation so they can be more specific with the fee structure. 


Another key is to think through how complicated your tax return will be. You want to work with a tax preparation firm which has worked with people in your type of situation. A good example might be if you worked in two different countries within one year. This can be a highly complicated situation that many tax preparers have never faced before. Having familiarity with situations is critical so that your tax preparer has experience with the tax codes that pertain to your particular situation.


If you own a small business and work with an accounting company, a good practice is to have your taxes done by your accountant or to work with someone at the recommendation of your accountant. If you are happy with your accountant, you can easily find referrals by talking to him or her. People get along with others whom they like and if your accountant gets along well with a certain tax preparation firm, you will likely work well with them as well. This can ensure a good working relationship.


Find a tax preparation firm early in the game. If you wait until close to the filing deadline, you may find that many firms may have to turn you away. They already have many clients and are not able to keep up with new clients as well. If you give yourself time by starting the process earlier in the year, you can find a firm that you want to work with very easily and which has time for you as well.


Check how the tax preparation firm has worked with others. You can ask for a past customer referral to talk with if you would like. You could also check with the Better Business Bureau to see if there have been any complaints against the tax preparation firm in the past. There is also a state board for accountancy that you can check with to see that you are working with a reputable tax preparer.


These tips should serve you well so that the tax preparation firm can save you money and time. You can potentially save more on your tax return as well because of the knowledge and expertise of the firm you decide to work with.