You should see accountants as no different from a doctor or lawyer, you tell them everything from your last meal to your aches and pains so they’d know how to diagnose you or defend you. You should tell and submit everything to your accountant from your McDonald’s receipt to your financial- and IRS-related predicaments.
Given this, you should be careful in choosing the person who would manage your personal and business tax returns. Just because an accountant has a CPA and know how to file a tax return doesn’t necessarily mean they’re good accountants.
If the accountant you’re working with right now shows these signs, you may want find the one that is a right fit for you and sure knows what they’re doing.
They’re not on your side.
First things first, no matter what the issue is with your financial statement, your accountant should do what it takes to lessen your tax liabilities. You now work as a team; as how lawyers and their clients do.
If they value you as a client, they should be willing to take reasonable risks with you and should be fully aware of it. You should look beyond just a tax return preparer—you should look for a partner who’s not going to run for cover once the IRS comes looking for you.
They don’t explain your financial statements.
One reason why you hired an accountant is to help you understand your financial statement and guide you in sorting it out. Your accountant should aid you on how to comprehend these reports.
A good and trustworthy accountant should explain and teach you how to review your financial statements and other reports on your own.
They’re difficult to reach out.
Ever experienced contacting your accountant only to hear back a week or two later? This isn’t acceptable as it is unprofessional. If they are on a vacation, they should at least send out an email blast to their clients notifying in case of failure to respond back with any queries. Responses, whether it be through email or call, should be timely especially during tax season.
They don’t help minimize your deductions
When talking about tax deductions, there’s no doubt that your accountant knows all too well how to handle it and which path to take. But since you’ll be the one signing the tax return, you need to be aware of their educated plans and decision of your accountant, most important of all, you need to be comfortable with what they have decided to put on your deductions.
They should explain to you all the deductibles and what are not. If they fail to explain to you the deductions and make you aware of their actions, your accountant might know little to nothing about this subject.
They offer to sham your taxes for you or their personal gain.
No matter how promising your accountant offers sound to boost your tax return or inflate your taxable income by deceiving or doctoring, if it’s suspicious and improper, refuse it and fire them immediately.
Furthermore, if your accountant fail to provide you a copy of your tax return and/or refuse to sign our return, you should report them to the authority as it is a suspicious act and they practice questionable behaviors. In short, if they lay on the table offers that seem fishy, you should act on it immediately.
About Chie Suarez
Chie is a daytime writer for Depreciator – Tax Depreciation Schedule, a company dedicated completely to Tax Depreciation Schedules that aids the Australian property market.
October 20, 2016