What Are The Types Of Tax Services?

For the average person, taxes are usually filed at the beginning of the year for the previous year’s financial results. However, with my multiple businesses and hobbies in motion, choosing the right tax service can be arduous. Is your hobby turning into a full-time money-maker for you and your household? Are you adding employees to your current business? Have you downsized your business model altogether? More importantly, who is eligible to handle your bookkeeping and tax services? Let’s briefly explore your options when it comes to your end-of-year, or perhaps mid-year, taxes and bookkeeping. 

The Top 4

The top four kinds of tax preparers are non-credentialed tax preparers, certified public accountants, tax attorneys, and enrolled agents. Enrolled agents (EA) are licensed through the IRS and are trained in federal tax affairs. These individuals are able to service businesses or individuals’ tax needs before any IRS office. A tax attorney is one who obtains a state license to practice law. Depending on your state, the tax attorney may be required to hold a law degree and continue their education to ensure they’re up to date with new and existing laws. Much like EAs, their degree and continuing education allows them to serve their clients without limitations under the IRS bracket.These individuals are adept in preparing tax returns, offer sound advice and guidance to clients on reducing their taxes, and offer tax planning services. Certified public accountants (CPAs) are licensed by the state to offer public accounting services. Every CPA must pass the Uniform Certified Public Accountant Examination and is encouraged to take continuing education courses. CPAs are capable of preparing tax returns, examining financial statements and maintaining financial records, and providing auditing services. These individuals are also competent in representing client matters, such as applications, tax audits, and payments and collections issues, under the unlimited representation of the IRS. And lastly, a non-credentialed tax preparer is one who doesn’t hold any professional credentials, nor have they studied under a notable organization. These individuals are usually seasonal, and either volunteer at the IRS or work in a tax preparation store. The IRS offers non-credentialed tax preparer opportunities for voluntary work through the Annual Filing Season Program, an eight-hour continuing education program with a six-hour refresher course. 

Which Bookkeeping and Tax Services Do You Need?

All professions noted above, with the addition of a bookkeeper, differ in responsibilities and education. You may need the services of one or several. But the point is to find the one that best suits your personal life and business needs. Small businesses, even if it’s just you as a sole employee, need some assistance when it comes to taxes and planning. You are the face of your business, and you don’t have the time to wear another hat! A bookkeeper is a help to all businesses,  usually working alongside an account or CPA, so you can guarantee a thorough result. A bookkeeper works to keep you and your business in check. They confirm all documents are in order for tax preparations, they crunch numbers, and keep receipts (detailed receipts!) They are responsible for the accuracy of your finances. They’re with you all year long, and help with accounts payable/receivable, providing monthly reports, and even payroll. So, a bookkeeper is helpful to have around in addition to your CPA or accountant. You will soon know why you need a bookkeeper for your end-of-year tax preparations. 

Bookkeeping goes hand-in-hand with accounting. It’s essential that your business performs its best and produces yearly financial gain. Every time you make a sale, you’re responsible for reporting those earnings. Bookkeeping and tax services together make all the difference in your year-end result. Don’t wait to hire the right professional for your bookkeeping today. Schedule an appointment with our helpful team at Mikell Wilcox will take care of your business!