BY SHALINI KODIAL, CPA
FOUNDER & CEO, SHALINI KODIAL CPA PLLC

This is our second “Community Corner” post! Thank you to Shalini Kodial for contributing this valuable advice about what to look for in a tax professional. Shalini’s mission is to empower business owners to achieve financial success through strategic tax planning and fractional CFO services. 

As a business owner, I’m sure you want to maximize your profits, reduce your tax liabilities, stay compliant, and make sure your books are in order. So you go looking for someone to help you with all of these. And then you come across profiles and titles such as: Tax Professional, Accounting Expert, Tax Strategist, Tax Planner, etc.

Only problem is … some of these terms can be used by virtually anyone. None of these require any special education or credentials or experience. Do you want to entrust someone with your critical financial and tax information without being able to verify their experience or credentials?

Selecting the right tax or accounting professional is one of the most important decisions for your business. It’s crucial to do your due diligence before entrusting someone with your business finances. Here are some important things to look for.

Is your tax or accounting professional a CPA?

The gold standard for a tax or accounting professional is a CPA – Certified Public Accountant. Strict laws are in place to ensure that this title cannot be used loosely, and it can be verified by anyone. When you hire a CPA to do your taxes or accounting, you can feel a lot more at ease knowing that this person is not only qualified to help you, but also has to live up to a very high professional standard. You can verify your professional’s credentials at the Texas State Board of Public Accountancy: www.tsbpa.texas.gov and ensure they are CPAs in good standing.

Is your tax or accounting professional an IRS Enrolled Agent?

Is your tax professional qualified to represent you in front of the IRS if needed? This is an important credential to consider. The IRS provides a directory of credentialed tax preparers, including Enrolled Agents (EAs), CPAs, and attorneys (irs.treasury.gov/rpo/rpo.jsf).

Does your tax professional have experience in YOUR industry?

Different businesses have unique tax requirements. Choose a CPA with experience in your specific industry to ensure they understand relevant tax deductions, compliance requirements, and financial planning strategies.

Does your CPA specialize in business taxation?

A CPA who specializes in business taxation, entity structuring, and tax planning can offer more value than a general tax preparer. If your business operates internationally or across state lines, ensure they have expertise in multi-state and international tax laws.

Is your tax professional transparent about their fee structure?

A professional should be upfront about their fee structure. Some charge flat fees, while others bill hourly. Be cautious of tax preparers who base their fee on your refund amount.

Does your tax professional take ethical standards and compliance seriously?

It’s tempting to go with a tax professional who will, at times even without reviewing your finances, promise huge refunds. But that should be a huge red flag. Are they staying compliant with the law? Will you get in trouble down the road? Avoid preparers who engage in questionable practices, such as:
– Filing false deductions to inflate refunds.
– Refusing to sign your tax return (this is illegal—only a paid preparer who signs the
return is legally responsible).

Is your tax professional available for year-round support?

Your CPA should be available beyond tax season. Business owners need year-round guidance on:
– Tax planning strategies
– IRS audits & notices
– Financial forecasting

Does your tax professional take data security seriously?

The last thing you want is for your sensitive financial data to be exposed. Ensure the your tax pro uses secure portals for document exchange and stays updated with modern tax software to improve accuracy and efficiency.

A reliable CPA is an investment in your business’s financial health. By taking the right precautions, you can ensure you’re working with a trustworthy professional who will help your business thrive.