For any business, tax time is both demanding and exciting. The business’ yearly tax return offers valuable insights into revenue as well as expenses and annual growth.
A tax advisor is an accounting expert who specializes in the complex tax code, and who uses that expertise to help taxpayers reduce their tax burden. In this blog, we will provide information on how you can find a tax advisor suitable for your company in Dubai. Before that, let us know why it is important to have a tax advisor.
Why is it Important to have a Tax Advisor for your company
A good tax advisor does not only perform the tax audit assurances for your company in Dubai but can advise you on the structuring of your company. Selecting the right tax advisor is crucial. There are several types of tax advisors, and it does matter who you select to help you.
The Internal Revenue Service Tax Code alters, and even a small business can lose money or make mistakes in filing. Since small business owners are taking care of their own clients, customers, and products, it makes better sense to turn over taxes according to the UAE federal tax authority and related items to someone who understands the law and can keep you out of trouble.
Factors to be Considered when Hiring a Tax Adviser Suitable for your Company
Choosing the right professional to drive this crucial task can be its own challenge. Following are several factors to consider for hiring a tax adviser.
Find an IRS Enrolled Agent
A good first qualification by which to determine a tax adviser is whether they are a registered agent with the IRS. These experts are great allies for any company with intricated tax filing situations.
Tax experts must pass a meticulous qualification process to receive the IRS’s approval, comprising three Special Enrollment Examinations, one of which is particular to business taxes alone. After passing the tests and obtaining their initial endorsement, IRS-enrolled agents must finish 16 hours per year of continuous education, two of which must be based on ethics.
By choosing a tax adviser who is IRS-registered, a business owner can be better certain that the tax adviser is up to date on current IRS policies and needs. You can find such a tax adviser through the National Association of Enrolled Agents.
Do your Research
It is vital to get objective information about the background of the tax adviser as per the UAE federal tax authority, even if they’ve been endorsed to you by a trusted peer in your industry. Check them out to confirm their credentials and their professionalism.
A registered agent’s status with the IRS can be asserted by submitting a request to their licensing office through email. In the case that you learn important information you didn’t know from this screening process, you’ll be delighted you took the time to do due diligence.
Knowledge of your Company
Whether you’re selecting an enrolled agent or a CPA, it’s crucial that they frequently represent businesses in your industry. A restaurant will have very different needs for reporting wages and income than a construction company that rents independent contractors.
If you provide stock options, you want to ensure that the adviser has served other businesses. Other business owners in your organization can be an indispensable resource in seeking out a qualified professional of both types.
Don’t hang back to use your network to your advantage, but still do your due conscientiousness. Interview multiple persons in order to compare and contrast fees, services, and even personality to get the right fit for you. Ask targeted questions that will bear out they know your industry well.
One important thing that you must consider is that if the tax adviser isn’t available to work with you all round the year, they’re certainly not a good choice. Any tax professional you hire should provide a guarantee of their services and admit to providing any necessary amendments, revisions, or audit support as required after the filing season has finished.
If these services are required because of an error the tax adviser made, the best practice for the industry is that those amendments, revisions, or corrections should be offered for free.
Don’t Get Too Comfortable
Once you find a registered agent whom you trust to handle your taxes, it’s vital not to simply stick with them all year round out of habit. If your company is growing or has a complex structure, the advantages of a professional who is familiar with your company’s business may exceed concerns like a lower price.
However, it’s also vital to ensure your tax adviser is educated about changes to tax policy and tax audit assurances that they're furnished to handle changes in scope as the company’s business grows or hires people and contractors in new roles.
If there's ever a year with so many changes in tax laws or changes in your company’s business, it may also be time to change your tax adviser or have a conversation with your current advisor about what to expect.
In order to effectively choose a tax adviser suitable for your company, Contact us – we’d be delighted to help you.