Don’t ever think that hiring a tax consultant is for rich people only. Although hiring a tax consultant involves money, it might also save your time, money and give you peace of mind. However, managing your activities to minimize your tax liability without landing into trouble requires an understanding of tax law and careful planning. If you don’t have the knowledge, experience, and time required to calculate and file your returns with the relevant tax authority, thus it is advisable to hire one. This article explains the factors to consider to choose a suitable tax consultant to manage your taxes.
Here are the factors to consider to choose the right one:
The first factor to consider is the status of the taxpayer. This is because the tax laws and rules applicable to taxpayers depend on his/her status. If the taxpayer is an individual, he/she is subject to tax under personal income tax. But, if the taxpayer is a corporate body, it is subject to tax under company income tax. Thus, the one should have knowledge and experience in the relevant tax laws applicable to the taxpayers based on their status.
The complexity of tax matters
The complexity of the income and tax structure of the taxpayer must also consider in choosing a suitable tax consultant. If the taxpayer has large and different sources of income as well as a complex tax structure, a team of suitable consultants may be required to optimize the tax liability. However, if the level of income is low with less tax structure, a consultant is enough to handle that.
Educational and professional qualifications
More so, you need to consider the educational and professional qualifications as well as the professional licenses of the consultant. It is good if the consultant has accounting-related professional qualifications like ICAN, ANAN, ACCA, and others as well as tax qualifications like CITN. Also, one needs to have the necessary licenses to practice tax consulting services.
Additionally, make sure that the consultant has enough experience in dealing with preparing and filing of tax returns as well tax issues.
Area of expertise
Choosing the one that is knowledgeable, experienced, and specialized in the area of your need is very important. Thus, don’t select a consultant based on reputation only, ensure that his/her experience and expertise are relevant to your tax needs.
Tax audit representation
Also, make sure you choose a consultant who is willing and able to represent you in the case of a tax audit by the tax authority. Thus, don’t hire the one that will leave you to your faith when the issue of tax audit arises.
In conclusion, you must be careful when selecting a tax consultant to handle your tax matters. This is because you are going to entrust the person with your data and sources of income. So, choosing the one with integrity, knowledge, experience and professional qualifications and licenses is very important. Taking the factors listed above into consideration will help you to choose a suitable tax consultant and partner.
Afeez is one of the founding partners of Marasas Consulting limited. He consults for both individuals and entities in the area of accounting, management, audit, tax, and investment. He has a wide range of experience both online and offline which allows him to provide relevant and timely professional advice and assistance to business owners with their accounting, tax, management, audit, and investment plans.
Afeez is a member of the Institute of Chartered Accountants of Nigeria (ICAN) and a member of the Nigerian Institute of Management (Chartered). He is a certified Google analyst and strategist. He earned his Bachelor degree in Management and Accounting from Obafemi Awolowo University, Ile-Ife, Nigeria, and earned an ordinary national diploma in Accountancy from The Polytechnic of Ibadan, Oyo State, Nigeria. He earned certification in “Excel Crash Course” and “Reading of Financial Statement” from Corporate Finance Institute, Canada.
Afeez is dedicated to helping clients achieve business success by helping them to establish solid and sound accounting, tax, and financial processes.