Taxation and management are two very different subjects and yet they are related in so many ways. There is a huge difference between the two and that is why we need two different accounting firms, for the smaller businesses. This can only be concluded by comparing the two using totally different methodologies. This is where the differences between the two come into play and it is why we need accounting firms specializing in tax and management. Theseauctions, via sites such as https://www.youtube.com/watch?v=GXQs68tCsCc are also available online.
We have to start off with the fact that public accounting firms cannot do tax preparation because the task is too big for them. So they have to rely on data collected by the government to do their job. The government has a database of tax returns and every year an accountant’s job is to go through that database and update all the tax returns as required. It is not easy and takes a lot of effort on the part of the accountant. Whereas, the tax returns of small businesses are updated by the owner or a representative of that business.
Secondly, when it comes to CPAs, the task of tax preparation is too large for CPAs. The CPAs work under their own specialised schedule and they are not allowed to prepare tax returns under the orders of any government department. They are CPAs and they know their job better than anyone else and most often than not, these tax and management consulting companies have CPAs working for them. CPAs are very experienced professionals and they have the knowledge of each and every rule that are applicable. So there is nothing which CPAs can refuse.
So if we are going to compare the two tasks, we must also compare the two kinds of firms which are the CPAs and the management consulting firms. Both these firms are tax preparation firms and both are specialized in their fields. CPAs are usually very good financial advisors to management consulting firms are trained in areas like finance and management planning. So the choice between the two will always be left up to you.
However, the main thing that should be kept in mind before choosing a particular firm is that you must never hire a tax consulting firm which charges you more than half of the fee for your CPAs to prepare your tax returns. Some of the firms charge as much as seventy-five percent for CPAs and as little as thirty-five percent for management consulting firms. So it is up to you to find out whether the CPAs charge higher or lower fees and whether they charge according to the number of years of experience or the number of clients they serve. And it is also up to you to find out if they have any reputation for charging less for tax preparation or charging more for CPAs to prepare tax returns.
The best way of hiring the right CPAs to take care of your tax returns is to go through the reviews and testimonials of various firms on the internet. You will find many firms offering tax preparation services and reviews will let you know which firms are legitimate and which ones are not. These reviews can be very useful for you because most of the genuine firms will not charge you for the initial free tax consultation but you will definitely come to know after taking the first free consult.