Once you know you would like to speak to a professional about your taxes, you face another choice. Who do you pick? You may not have considered the differences in qualifications between a tax attorney and an accountant, but these two different professions naturally approach tax preparation differently.
Qualified accountants and tax attorneys can provide tax advice to individuals and businesses.
Accountants are trained in financial forecasting, tax regulations, and codes which helps them provide more overall financial guidance and strategies.
Attorneys are trained in case law and legal research which can help you deal with more specialized tax litigation.
How to Choose?
Consider your needs. Straight forward tax preparation, business planning, and financial strategy are all services within an accountant’s wheelhouse. And the hourly rate of your accounting partner is likely to be far lower than an attorney. However, if you receive a tax claim against your business or are involved in complicated situations with potential litigation, you may want to contact a tax attorney. The great thing about an ongoing accounting partnership is that your accountant will be able to distinguish between these situations and help point you toward a tax attorney, should you need one.
Best of Both Worlds
If you really can’t decide, consider choosing both. For almost all situations, an accounting partner is going to provide holistic financial forecasting, tax strategy, and business advice. And keeping your accountant on the tax preparation side will save you time and money. Creating a relationship with a business attorney is also going to be valuable in the future, whether for tax concerns or other legal issues.
At FNG, LLC, we have relationships with tax attorneys that we can recommend to our clients should the need arise, but we are firm believers that financial specialists are in the best position to strengthen your financial future.