A Guide To Hiring A Tax Consultancy Firm

Tax consultancy firms are growing to become an essential component of the business sector.  With the evolving financial system, accounting is growing, and moving away from just adding and subtracting numbers from statements. Their work description has been broadened to include vital consultancy services covering essential topics including management and risk management. Due to the relevance of tax consultancy firms, it can be challenging to settle on the right one. However, considering factors like experience and area of expertise goes a long way in helping to hire the right one. Here is how these factors play out.

Area Of Expertise

You require a tax consulting-focused accountant. If you run into someone who promises to be able to do everything from tax consulting to financial statement creation and audits, they are probably just a jack of all trades and they would likely not meet your needs. While it is crucial to have a general understanding of other aspects of accounting, tax consultancy should be their area of expertise. Find out what industry the firm has the most experience in as well. Some of the common areas of specialisation include: 

Payroll Tax 

Specialists under this segment manage employer and employee tax contributions and reconciliations. For instance, financial services play a critical role in ensuring the organisation is compliant with existing laws. 

Income Tax 

Income tax is usually imposed on individuals or entities based on their income or profits earned. An income tax specialist will generally compute the right figures considering that tax rates may vary by type or characteristics of the taxpayer or income type.

Experience

The consultancy firm’s experience and expertise are also important evaluating factors. You must choose a candidate who is knowledgeable about your sector and familiar with the specific service needs you have. Determine whether the firm provides the services you want, from fundamental accounting and auditing to specialised business consultation roles like financial analysis. To analyse the candidate’s prior assignments, you will conduct due diligence. 

Licensing

Be sure to choose a tax firm with the necessary training and certification to offer those services. Since the organisations they belong to demand that their members uphold incredibly high professional standards, they should be certified or chartered accountants in regard to local laws. 

Security

Your financial statements may need to be audited for various reasons if your firm is a public limited company or if you intend to list it on the stock exchange. If you are audited for any reason, the tax firm should be willing to represent you while guaranteeing that your information will be kept safe. If the firm has no stringent security measures in place, you should look for another entity. 

Fees

The tax consultancy billing rate is another important factor in hiring decisions. Professional accountants typically bill hourly or under a fixed service agreement. To determine if the rates are affordable or should choose a less expensive option, you must compare the given charge with your established budget.  Note that the total cost should be proportionate to the size and difficulty of the task or assignment at hand. You ought to receive the services you need. 

Endnote

Businesses with high tax requirements need experts to handle the task. Although there is an influx of consultancy firms, you should go for any that you come across. However, look at factors like security, fees, and experience.