Tax Preparer Objectives
Filing your annual tax return can be a complicated, frustrating and costly process. If you don't have the time or don't trust yourself to wade through the tax code, you can entrust your filing to a professional tax preparer. Tax preparers use their skills and knowledge of tax regulations to take care of the whole process for you.
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Accuracy
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One of a tax preparer's key objectives is accuracy. Small mistakes in computing a client's tax can lead to major inaccuracies later in the tax form. Besides checking arithmetic, tax preparers need to understand and consult the tax code to make sure they use the proper forms, worksheets and procedures for computing each number. Submitting an inaccurate tax return can lead to a penalty for the taxpayer, and tax preparers who offer guarantees may be subject to refunds or penalties as well.
Savings
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Within a perfectly accurate tax form, a tax preparer also has the objective of saving as much money for the client as possible. This includes taking all allowable deductions and credits. The tax preparer must decide whether to use a standard deduction or itemized deductions based on the filer's financial situation. Tax preparers also need to know where the greatest savings are, such as new credits that taxpayers might not yet be aware of. Achieving maximum tax savings will give tax preparers more satisfied clients and, depending on the rate schedule, possibly a higher fee.
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Efficiency
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Professional tax preparers need to process anywhere from dozen to thousands of individual tax returns in a given tax season. To complete the large volume of forms within a limited time frame, preparers need to work efficiently. This means a tax preparer must find a way to avoid redundant or unnecessary process. For example, a preparer might be able to tell at a glance whether a client should use a standard or itemized deduction, or which is the appropriate tax form to fill out based on just a few key pieces of information. Preparers also work to streamline their efforts and reduce wasted time using computer software and online filing systems.
Profit
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A professional tax preparer needs to make a profit. This objective is tied to all of the other goals of the preparer's work. Efficiency means more time to complete more returns for clients. Accuracy and savings create happier clients, higher fees and a lower rate of refunds to clients to atone for filing errors. Preparers also need to charge reasonable fees that are competitive with other preparers and do-it-yourself software alternatives, while still covering the costs of operating a tax preparation business.
Tax preparers who work for employers or community organizations need to be able to market themselves as experts who can provide helpful services to employees or members. Those who market directly to the public need to create a sense of trustworthiness and professionalism before anyone will hand over their important financial records.
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