It’s safe to say that 2021 is shaping up to be the most complicated tax year yet. Between the CARES Act, the Paycheck Protection Program and unemployment, business owners are facing more changes than ever and will likely have many questions regarding the next tax season. Rather than waiting until 2021, owners should be working to find an effective and knowledgeable tax advisor to not only guide them through the updates, but also reduce their taxes. Here are a few things to look for when finding the preparer that’s right for you.

They want to understand you and your goals

Tom Wheelwright is a CPA and CEO of WealthAbility.

To best serve you, your tax advisors needs to have a full understanding of your life and business. A great advisor will ask you about your relationship with your spouse and children, your projected business situation, your projected investments and more. While it may seem irrelevant, for business owners that information is the key to unlocking major tax savings. By looking at the bigger picture, advisors can create permanent long-term tax savings.

They view the tax law as an opportunity

A true expert in taxes views the tax law for what it is, a series of incentives for business owners and investors. Professionals with this mindset are open to looking beyond standard tax deductions to find permanent ways to reduce taxes for business owners, not temporary savings that may not amount to much in the long run. The tax law allows for great flexibility if you know what is says, which is why it’s critical to find an advisor with vast knowledge of the law.

They consider the entire law, not just a single rule of law

To create tax savings, your advisor must look at the tax law as a whole, rather than single rules of the law. This approach is especially useful when there are new changes like those found in the CARES Act. Instead of planning and filing your taxes as usual, tax experts will look at what opportunities there are and how you can fully maximize them. In addition, advisors should be closely monitoring developments with PPP loan forgiveness and coaching you through the process as it will greatly affect your tax planning.

They’re willing to teach you the tax rules

You must learn enough about how the tax law applies so that you can use it to your benefit every day. Many tax advisors don’t want you to know the tax rules as they believe then you won’t need their advice. However, a good advisor knows that when you understand how to reduce your taxes, you’ll increase your cash flow and then increase your wealth. By increasing your wealth, you’ll need a tax advisor more than ever to show you how to continue to reduce your taxes.

I encourage you to use these tips to find an effective tax advisor that can provide you with the guidance to not only navigate the challenges of the tax season, but to reduce your taxes along the way.

 

Tom Wheelwright is a CPA, CEO of WealthAbility, Best-Selling Author of Tax-Free Wealth (Rich Dad Advisors Series), Speaker, Entrepreneur and Host of 2 popular podcasts: The WealthAbility® Show with Tom Wheelwright CPA and The WealthAbility® for CPAs Show.