How to Find a Small-Business Tax Advisor or Accountant Near You

Your small-business accounting software can perform a variety of tasks, but when it comes to filing your business taxes, you might prefer more hands-on support. That’s where a business tax advisor comes in.

These professionals, like a certified public accountant (CPA), can help you prepare and file your business taxes — as well as maximize your deductions.

Here, we’ll review what you need to know about small-business tax advisors and how to find one near you.

What is a small-business tax advisor?

A small-business tax advisor is a certified professional who specializes in tax law and can provide expert advice on tax planning and preparation. Business tax advisors may perform any of the following tasks:

• Advise you on the best way to structure your business.

• Prepare and file your business taxes.

• Offer tax and other financial advice, such as how to maximize business tax deductions.

• Review your books and records.

• Represent your business in the event of an IRS audit.

Types of small-business tax advisors

Technically, anyone can be a small-business tax consultant — all they need is an IRS preparer tax identification number (PTIN). However, in order to ensure that your business and taxes are in the most capable hands, there are a few types of IRS-certified tax advisors you should know about. These kinds of tax advisors meet the additional skill, education and expertise requirements set out by the IRS. Even more importantly, they’re all authorized to represent you before the IRS:

• Enrolled agents (EA): An enrolled agent is a tax professional licensed by the IRS. These professionals have passed a three-part special exam to demonstrate their tax proficiency or have worked at the IRS for a minimum of five years.

• Certified public accountants (CPAs): CPAs are accounting professionals who have passed the CPA exam and comply with the CPA requirements. CPAs offer a range of services, including tax preparation and filing.

• Attorneys: Attorneys are law professionals who have passed the bar exam and are licensed to practice by their respective state. Although all attorneys technically fall under this IRS requirement, business owners will want to work with an attorney who specializes in business taxes.

How to find a small-business tax advisor

Finding a tax professional for your business isn’t always as simple as typing “small-business tax advisors near me” into Google. Here are five steps you can follow to find the right tax advisor for your business:

1. Evaluate your needs

First, you should consider why you want a business tax advisor and what tasks you’d like them to perform. Are you simply looking for someone to file your taxes? Or maybe you want someone to provide long-term financial and tax advice? In either case, it’s helpful to outline exactly what you’re looking for in your tax advisor ahead of time.

2. Research tax advisor candidates

There are several places you can search when looking for a small-business tax advisor near you. Here are some options to consider:

• IRS database. The IRS maintains a database of tax preparers who hold professional credentials recognized by the IRS. You can search the database by location, last name and what type of professional you want.

• Professional associations. Many professional tax or accounting associations maintain publicly available directories that allow you to search for certified business tax advisors near you. Some notable organizations include the American Institute of Certified Public Accountants (AICPA), the National Association of Tax Professionals (NATP) and the National Association of Enrolled Agents (NAEA).

• Referrals. If you already work with a business accountant or bookkeeper, these professionals may be able to recommend a tax advisor. If your accountant is a CPA, they might also be qualified to serve as your business tax advisor. You can also consider asking other business professionals you use and trust, as well as other small-business owners for references.

3. Verify their credentials

Before you hire a business tax advisor, you’ll want to verify their identity and credentials.

At a minimum, you should ensure the person has a PTIN, which authorizes them to prepare tax returns with the IRS. You can use the IRS database to verify someone’s PTIN.

If your potential tax advisor claims to be a CPA, enrolled agent or business attorney, you can check to confirm the person is, in fact, licensed and in good standing in your state:

• For CPAs, use the National Association of State Boards of Accountancy’s CPA Verify tool.

• For enrolled agents, you can email the IRS directly.

• For attorneys, you can see if your state maintains an online directory. In New York, for example, you can visit the New York State Unified Court System’s website to verify an attorney’s credentials.

It may also be helpful to check the tax advisor’s history with the Better Business Bureau, as well as read any online reviews about the individual’s services.

4. Ask about fees

The cost of a small-business tax advisor can vary based on your business and its needs, your location and the advisor’s experience, among other factors. It’s important to understand how much a tax advisor charges upfront so that you can make sure the cost fits into your business budget.

Tax advisors may charge a flat fee, an hourly rate or an annual retainer (for ongoing assistance). In general, prices will increase for more complex returns and frequent support.

Here’s what typical costs might look like:

• Flat fee: $500 to $5,000.

• Hourly rate: $150 to $500.

• Annual retainer: $1,000 to $10,000.

5. Make sure they’re the right fit

Finally, you’ll want to make sure that the small-business tax advisor is the right choice for your specific needs. Consider questions like these to help you decide:

What role will the tax advisor play on my financial team?

Will your advisor interact with the other members of your team (attorney, financial planner, etc.) to make sure everything in your financial plan is working smoothly? Will they have access to all of your business finance tools like your accounting or bookkeeping services?

How much experience does the tax advisor have delivering the kind of results I'm looking for?

Ask the tax advisor to share some success stories from other clients they’ve worked with.

Most tax advisors will be able to share stories, testimonials or even references with you. Make sure you check them out.

Don’t be afraid to ask about specific strategies the advisor has used. You want the advisor to respond with answers like “we educated the client on which costs were deductible” or “we restructured this client’s business to take advantage of lower tax rates,” etc.

What you don’t want to hear is evidence that the advisor has used aggressive strategies that would cause red flags with the IRS, or strategies that are just plain illegal. Listen for words like planned, restructured, educated and documented in the advisor’s answers — these are legitimate.

What experience does the tax advisor have with my issues?

Does the advisor have knowledge about your industry? Do they work with anyone in your industry right now? Do they know about any trends or news that relates to your business? What can be done to either profit from or protect you against those trends?

You want an advisor who understands your business and specific issues concerning business taxes, like the small-business tax rate. If you have to educate your tax professional about how your business routinely operates, they probably aren’t the right fit. A tax professional should refer you to someone else if your business is not their specialty.

What does the advisor do for their clients year-round?

Business (and life) happens year-round, not just at tax time. You need to be able to have access to your tax advisor all year long so if a situation comes up and you need guidance, you can get advice before the transaction or event happens.

If your tax consultant only does taxes between January and April and takes the rest of the year off, that should be a red flag to you. You want somebody who lives and breathes the tax code and can apply it to your situation. You also want an advisor who will stay in contact with you during the year and alert you to any tax saving opportunities that may arise.

What level of responsibility will they take for my tax return?

You want an advisor that will stand behind their work. If problems come up with your tax return, your advisor should be able to address them. If you face an IRS audit, your advisor should be able to help you through the audit process.

» Need more than a tax advisor? Consider a fractional CFO.