As a business owner, you've taken control of your work life and of your financial life. You deserve to reap and keep your fair share of the rewards from your work.

In this Get Help Section

• Professional help
  Professional Help and Tax Miracles

Accountants, especially CPAs (Certified Public Accountants), have been trained to understand the IRS rules that seem like riddles to everyone else. They know so much that they can pull tax-saving miracles out of thin air -- and you can count on what they say being legitimate. (Otherwise, they'd lose their certification and, therefore, their whole career.)

And they are required to keep their knowledge current in order to retain their certification. (This is a really good thing since tax laws and the way the IRS interprets them are always changing.)

A CPA can look at your income picture (positive or negative) and show you how to get your fair share of tax savings from it. They know strategies most small business owners have never heard of or even imagined.

Tax pros aren't intimidated by financial numbers and forms -- like most ‘normal' people are -- they relish them. So just give your accountant your data, walk away, then come back to pick up your completed tax forms!

True, you'll pay tax pros several hundred dollars to partake of their magic, but for every hundred dollars you pay them, they could potentially save you a thousand dollars or more -- possibly tens of thousands. Their mission is to legitimately minimize your tax bite -- and they are zealous about it!

As an entrepreneur, you'll have net income that can swing year-to-year from unfathomable depths to awesome heights. Your tax advisor will help you even out the peaks and valleys tax-wise. Don't even try this at home -- you'll never be able to pull it off like these seasoned professionals can.

Also, if your tax returns are done by a tax professional, there's less chance of being audited than if you as an individual prepare your returns. The IRS can pretty safely assume the pro knows the laws and has procedures in place to avoid errors.

• What do you want to look for in a tax professional
  You are looking for a professional you feel comfortable entrusting with a long-term relationship concerning one of your most important assets -- your money. You will probably meet with this person at least twice a year; once at the time you turn in your data for tax preparation, and once a month or so before the end of your tax year, so he or she can advise you on pre-year end strategies.

  Although it's certainly worth driving several cities away to see a good professional that knows your business, ideally your advisor would be geographically close enough so that it's not a hassle to get to their office so you can meet face to face. They should be in practice in your state, since you'll want them to handle your state returns and be able to advise you on state tax issues.

  You do want to meet with your pro in person -- he or she will always be explaining new things, as your accounting understanding and needs become more sophisticated. So you want to be there at his desk so he can point out things on his computer screen or scribble out sketches to help you understand concepts that are new to you. Or, if she sees from the blank expression on your face that you have zero grasp of what she just explained, she can back up and rephrase the information.

  You want a career tax professional who is in practice year-round, not just someone who shows up four months out of the year to grind out tax forms. (Those temp tax preparers won't have the level of experience you need to advise your business -- period.) The best-fit tax pros for small business probably partner in a small firm or work solo. Unless your company is on the “going-public” track you don't need one of the big firms and you certainly don't want to pay their big fees.

  Keep in mind that your accountant wants to focus on strategy issues -- she does not want to do your bookkeeping. But, if you need someone to handle the ongoing inputting of your financial data, do bank reconciliations, etc., your accountant may know of competent local services or individuals to suggest to you.

• How do you find a tax professional for your business
  
  How do you find a tax pro for your business?
  The best way to find a tax professional is to get a referral from a successful business owner in your field in your location. Do you know anyone that you could call and ask, “Say, who's the best accountant in our area for our industry?”

  If you aren't that close to a successful business owner in your field right now, can you think of anyone you could approach in your industry organization's meetings locally? Or even anyone you've read about or heard of who doesn't know you but just might be willing to help serious entrants to the field?

  What if you don't know of someone like that?
  Here are some other ways to find a good accountant:

  • Ask a business friend you respect in another field
  Talk to people you already do business with. If they run a successful small business in your area, they probably use an accountant they can recommend.

  • Ask your attorney
  Your attorney probably has good working relationships with and respect for several accountants nearby that he or she could suggest that would be a good fit for your business.

  • Go to a local trade group, Rotary or Chamber of Commerce meeting
  You don't have to join, just go as a guest. During introductions, note anyone who is in your field or is an accountant. Later, approach them, hoping to get a referral from that person in your industry or scope out whether you feel the tax pro is someone you'd like to work with.

  • Look in the phone book
  Yes, the fat one with all those pages. Look in the color pages under ”Accountants,” Accountants, Certified Public,” or “Tax Return Preparers.” Disregard any firm or individual with huge pictures and flashy smiles -- they are trying too hard -- there must be something wrong with them.

  Highlight a few others that have small, discreet listings, with addresses close enough to be convenient. The smaller the listing, the more likely they get most of their clients via word of mouth, so they probably very good (and busy).

  Call their office and explain you are a small business owner in the field of _________ and you are looking for a professional tax adviser. Ask what types of clients their office typically works with. If all sounds OK so far, ask them if they can add new clients. If so, ask if they offer a complimentary short initial meeting so you and the tax pro can determine if this is a good fit -- most probably do. But if you ask for this in March or April, you're likely to get a “no” from anyone, so try to begin your research in the accountant's off-season.

• How to evaluate your potential tax professional
  
  How to evaluate your potential tax pro
  OK, you're now at your initial meeting, complimentary or not. Assuming the pro you are meeting with is a certified professional, he or she should be able to competently handle your tax issues.
  
  Do you feel comfortable with this person?
  Your tax adviser will come to know almost as much about you as your psychologist (if you have one). Your tax pro will know some of the most intimate secrets of your soul -- how you feel about your money!

  Like Santa, he'll know if you're generous or greedy. Like your shrink, she'll know if you're an egomaniac or a wimp. (Of course, they can't comment on that -- but they'll KNOW!)

  So it's important that you're willing for this to be the person you take into financial confidence.

  Trust your gut feeling
  If you feel this relationship is just not destined to be, trust your gut instinct and gracefully avoid a second meeting. (Go back to the “how to find a tax pro” section.)
  
  Don't be too daunted if your potential tax pro gets way ahead of you as they're explaining things to you -- it's so bred into them that it's hard for them to comprehend that you might not understand when they pepper their sentences with words like "bifurcate". Just ask them to rephrase what they just said. If their second explanation works for you, fine; if not, maybe you should continue your search.
  
  Don't despair. You may have to kiss a few frogs before you find your tax pro prince or princess. But, never fear -- your quest will be worth the effort!

• Help from the IRS

  Help from the IRS and other government agencies

  The Internal Revenue Service (IRS) itself offers an awesome array of all types of help.

  The IRS Mission is to
  “Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.”

  And, at least as far as small business is concerned, the IRS and other U.S. Department of Treasury services, like EFTPS , the Electronic Federal Tax Payment System, have reached out to make tax paying as easy and painless as possible.

  The IRS offers much more help of all types

  In addition to publications and forms, the IRS has many more services. They have an excellent publication that tells about the array of help for small business. Every small business owner should pick up this free 40-page book to keep as a reference.

  Publication 910, IRS Guide to Free Tax Services (PDF)

  The reason this booklet is so great is that it details all sorts of services, tells you how to access them and step-by-step how to use them. Here are just a few examples:

  • IRS TeleTax - Recorded Information by Phone (877) 829-4477
  You can call toll-free anytime 24/7to hear recorded tax info on over 150 different topics, all of which are listed in this book. When your eyes are bleary from all the info packed into IRS publication PDF's, you can give your eyes a break and listen -- you may find it an easier way to absorb the information.

  • Or, to speak with a live IRS representative, (800) 829-1040
  How cool is that? You can call M-F 7a-10p, Sat 10a-3p. This booklet tells you how to prepare for your call.

  We'll be featuring more IRS and other free government services in upcoming weeks, so check back often.