When it comes to your money, it certainly doesn’t hurt to be organized. Having professional financial services at your disposal can make sure you can stay on top of your needs and comply with all state and federal laws.
If you’re looking for help with your taxes this year or next, you might be confused about the difference between an accountant and a tax advisor. What is the difference between these two positions, and which might you need to handle your accounts for this tax year?
Read on, and we’ll walk you through everything that you need to know.
Accounts vs. Tax Advisors
So, what is the difference between these two positions? After all, there is some overlap.
An accountant will manage their client’s accounts and will step in to assist with tax returns. Most accountants can advise their clients on both tax advice and tax planning. All that being said, this a kind of more general help than anything — not as specific as many people might need.
A tax advisor, on the other hand, specializes in tax planning. They spend most of their time keeping up to date with all of the latest tax laws and legislation, which are constantly changing.
They are well equipped to offer advice and guide clients on even the most complex areas of tax law. They will have passed several professional qualifications and will, above all else, be able to help with whatever problem you may find yourself facing.
You might not be able to say this about a standard accountant who will know the ins and outs of taxes broadly. An accountant has to focus on so many different financial elements; a knowledge of tax at this level might not be within their reach.
Which Do You Need?
Looking ahead for yourself or your business, what do you need: an account or more extensive tax advising services? That will really depend on the needs of your business.
You might not even have to choose between the two options. Many businesses end up hiring both an accountant and a tax advisor to do work for them; this way, no rock is left unturned.
You’ll have to look at the current complexity of your tax situation. What problems are you facing, and how much work might it be to get around them? Is the health of your business at threat by possible sudden changes in legislation?
If there are troubling waters ahead regarding you and your taxes, bringing a tax advisor on can be more than advisable. You can read more at this link to determine how to go about the hiring process: https://wealthability.com/blog/how-to-choose-a-tax-advisor/.
Hiring a Tax Advisor
If you were not certain about the difference between a tax advisor and an accountant, the above information should help to clear things up. Both roles can be critical to modern business.
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