Tax Preparer: What is the cost of hiring?

Why hire a tax preparer?

A great tax preparer hire can help your business: 

• Find the maximum deductions
• Ensure compliance with tax laws
• Obtain the maximum refund

Deciding between a full-time vs freelance tax preparer

Businesses and individuals can hire freelance tax preparers during tax season to conduct interviews with accountants and bookkeepers about the business’s income and expenses, audit the accounts and submit the tax forms. A business can also hire a freelancer to manage communication between the company and the IRS. 

Self-employed individuals can also pay their taxes quarterly, so they may look into hiring freelance tax preparers to help them complete the process every three months. 

Because many businesses need to keep track of their tax information year-round, they can hire full-time tax preparers. 

What are the types of tax preparers?

There are a few different classifications of tax preparers. Some titles they may hold include:

• Certified public accountant: Some CPAs specialize in tax preparation. These accountants are licensed to represent clients during tax audits and appeals, and they’re responsible for maintaining a business’s financial records, examining fiscal records and preparing tax documents. 
• Enrolled agents: Enrolled agents have been trained and certified in the area of tax preparation by the IRS. They’re licensed to represent individual and business clients before any IRS office. Enrolled agents also offer tax document preparation services. 
• Tax attorneys: Tax attorneys are lawyers who specialize in the field of tax law. They prepare clients’ tax returns and provide advice on how to reduce tax payments.
• Non-credentialed tax preparers: A non-credentialed tax preparer is an individual who can prepare tax documents but has no certifications from tax organizations or bar associations. 

Where to find tax preparers

To find the right tax preparer for your business, consider trying out a few different recruiting strategies:

• Search online. Certified tax preparers may be advertising their services online. Make contact with these preparers to see if they’re available. 
• Hire a tax preparation agency. Your business could hire a tax preparation agency that can take care of the tax process from beginning to end. 
• Post help wanted signs. Posting flyers around the community can encourage people to send in applications for the job.
• Hire from within. Some of the accountants in your business may already have the required skills and certifications to be tax preparers. Conduct interviews with quality candidates. 
• Post your job online. Try posting your tax preparer job on Indeed to find and attract quality tax preparer candidates.

Skills to look for in a great Tax Preparer

A great tax preparer candidate will have the following skills and attributes as well as work experience that reflects:

• IRS Preparer Tax Identification Number
• Annual Filing Season Program Record of Completion
• Knowledge of State and Federal tax laws
• Communication with clients
• Honesty to obtain maximum deduction
• Patience to follow the law

Writing a tax preparer job description

A thoughtful description is important to finding qualified tax preparer candidates. A tax preparer job description includes a compelling summary of the role, a detailed list of duties and responsibilities and the required and preferred skills for the position.

When writing your tax preparer job description, consider including some or all of the following keywords to improve the visibility of your job posting . These are the most popular search terms leading to clicks on tax preparer jobs, according to Indeed data:

• Tax preparer
• Accounting
• Tax
• Accountant
• Tax accountant
• Enrolled agent
• Bookkeeper
• CPA
• Tax preparer remote
• Remote work from home

Interviewing tax preparer candidates

Strong candidates for tax preparer positions will be confident answering questions regarding:

• Tax laws
• Using tax software
• Obtaining maximum refunds

Need help coming up with interview questions? See our list of tax preparer interview questions for examples (with sample answers).