6 Qualities to Look for in a Tax Professional for your eCommerce Business
When it comes to finding a tax professional for your eCommerce business, it is important to choose someone who is qualified and experienced. This is because they will be handling your finances and you need to be sure that they are up to the task.
Here are 6 qualities to look for in a tax professional.
1. Credentials
It is important to remember that when you work with a tax professional, they have access to sensitive personal and financial information. Therefore, having a sense of trust and security is essential when working with a tax professional. To ensure that your information is secure and confidential, you should look for someone who:
- Has a good reputation and references when it comes to eCommerce.
- Is bonded and insured.
- Is certified by the IRS or has a record of successful tax returns.
- Has strict confidentiality policies.
- Knows how to secure computer data.
The tax professional you choose should be comfortable with sharing information about their background and qualifications. Make sure to ask about their policies to ensure that your confidential information remains safe.
2. Experience
The more experience a tax professional has in eCommerce, the more knowledge they are likely to have about tax complexities and solutions. Find out how many years the tax professional has been in the field of eCommerce tax preparation, or how many tax returns they’ve prepared. You may want to look for a tax professional who is experienced in the area of your interest: for example, a tax professional experienced in dividend or capital gains taxes or a tax professional well-versed in state and local taxes.
Additionally, it can be beneficial to work with a tax professional who is up-to-date on relevant eCommerce tax laws, regulations and best practices so that you can be sure to be compliant with the latest IRS requirements. Further, as tax laws change, if you work with a tax professional with a long history in the profession, they may be aware of specific solutions that can help save you money.
3. Knowledge of the Latest Tax Laws
The tax code is constantly changing and evolving, so it is important that any tax professional you consider be knowledgeable about the latest tax laws and regulations. You should enquire about the level of knowledge the tax professional has on the tax laws and amendments that have been made in recent years with regards to eCommerce. It is also beneficial to work with a tax professional who can provide advice on how you can use the latest tax laws to your advantage.
Taxes can be complex, and the best tax experts need to understand the latest tax laws, the specific regulations and how those regulations apply to their client's situation. A qualified tax professional should be able to provide anyone with technical tax advice that can help them to understand their taxes, make better decisions and achieve their financial goals.
4. A Good Communicator
Another important quality to look for when selecting a tax professional is whether they are a good communicator. Tax matters can be complex and tedious at times, so it’s important that the tax professional is able to explain the complex concepts in a manner which is clear and easy to understand.
It is essential that your tax preparer is able to answer questions and address concerns that you might have with regards to your taxes and online shop. Additionally, the responses should be prompt and you should have access to all the resources that you need to understand the tax code better.
Furthermore, your tax preparer should be able to provide you with complete information about your taxes and any potential changes you could make to save on taxes. They should be able to provide you with clear and concise information so that you can understand the implications of any changes that you have made.
5. Detail-Oriented
When you are selecting a tax professional, it is important to look for someone who is detail-oriented. In order to file successful tax returns, it is important to have all the details documented and accounted for. Your tax preparer should be able to record all the details related to your taxes accurately and in an organized manner.
It is important that they are up-to-date on all the changes in the tax laws and are able to anticipate any potential issues. They should also be well-versed in the tax regulations which may apply to you. Furthermore, they should also be able to explain the technical terms related to taxes to you in a way that is easy to understand.
Being detail-oriented is an essential quality in order to avoid any mistakes when it comes to filing taxes. Your tax preparer should be experienced and knowledgeable enough to anticipate any changes that might arise and how to handle them. They should be able to make sure that you stay compliant with the tax laws and make sure that all the details are accounted for.
6. Resourcefulness
Resourcefulness is another quality to look for in a tax professional. The tax profession can be quite complex and ever-changing. Your tax preparer should have a good understanding of the resources available to them and be able to use them to ensure that your taxes are filed accurately.
Your tax preparer should have access to all the tools and knowledge necessary to provide the services that you need. The right tax professional should have adequate knowledge of the tax laws and know how to navigate through the complexities. They should also be familiar with the statutes and regulations which are applicable to your specific situation.
In addition, they should be able to look at your finances closely and leverage the right relationships to help you achieve the best outcome. The right professional should have the right relationships with the right people and organizations to take advantage of available resources.
eSenshi is an accounting firm specializing in assisting eCommerce businesses. We provide a variety of services such as Virtual CFO services and Sales Tax Services to assist eCommerce businesses.
Salim is a straight-talking CPA with 30+ years of entrepreneurial and accounting experience. His professional background includes experience as a former Chief Financial Officer and, for the last twenty-five years, as a serial 7-Figure entrepreneur.
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