What Is a Tax Agent and Do I Need One?

Hiring the right tax professional is essential to the success of your business, but it can be difficult to decide which professional is the right fit for your business.

A tax agent can help you to navigate the often confusing world of taxation, but is hiring a tax agent a better decision than working with an accountant or other professional?

Many business owners fear choosing the wrong professional for their business and thereby limiting success. This doesn’t have to be the case.

By understanding the benefits afforded by hiring a tax agent as well as your desired outcomes, you can make the decision for yourself.

Continue reading to learn more about tax agents and the benefits they provide for your business.

What Is a Tax Agent?

In order to determine if a tax agent fits the needs of you and your business, you need to understand the difference between tax professionals. Most commonly, you have the option of hiring an accountant or a tax agent

Accountants

Accounts have a variety of specialties and not all accountants offer the same services. In general, an accountant handles the finances for a business. This involves bookkeeping as well as preparing tax documents. 

An accountant can help you with your business planning. They can also advise you on the financial future of your business. 

Tax Agent

What is a tax agent? In contrast to an accountant who assists with a variety of financial matters relating to a business, a tax agent is a specialized accountant who deals with tax services specifically. 

These individuals have been specially educated and have obtained credentials from the Tax Practitioner’s Board. 

Are you considering hiring an agent? AY Accounting is a great resource for finding the right tax agent for your business. Head to their website to get more information.  

Do You Need a Tax Agent?

You may now be asking yourself, “should I hire a tax agent?” To answer this question, you should understand the benefits of a tax agent and decide on your desired outcomes.

What are the pros to hiring a tax agent? A tax agent can assist with navigating taxation laws and requirements, which can be intimidating to many, let alone business owners.

They assist you with understanding what obligations you have and what benefits you are eligible for. 

As for desired outcomes, you have to decide your motivation for hiring a taxation professional.

If you want someone to help ensure compliance, assist with future development, and potentially assist with other financial areas of your business, an accountant may be better suited for your business.

A tax agent, as discussed, is more specialized. If you are looking for someone to review the taxation history of your business and assist with forms and deadlines, a tax agent is going to best serve your needs. 

Keep in mind, some accountants also serve as tax agents, and a professional with this background may give you the best of both worlds.

Find the Tax Agent for Your Business

Now that we have reviewed the difference between accountants and tax agents, as well as have highlighted the benefits of each, you should feel confident in deciding if hiring a tax agent is the right decision for you and your business. 

For more answers to common questions, head to our website to read other helpful articles and get the information you need.

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