You finally sit down after a busy week, check your business bank account, and think, “We’re doing pretty good.” Then you wonder how much of that money you can actually use—and how much needs to stay put for taxes.
If you’ve had that conversation with yourself, let’s talk about when to bring in professional help and what to look for.
If you own a business, my recommendation is to hire a licensed tax professional as soon as you start earning business income. Ideally, begin the conversation while you are getting the business started so you can get guidance before making decisions that affect your taxes.
You do not need to wait until your business reaches a certain size or tax season arrives.
I am a licensed enrolled agent, and I work with U.S. businesses on tax preparation, strategic tax reduction planning, outsourced accounting, bookkeeping, payroll setup, and advisory services. One of the biggest problems I see is business owners waiting too long to ask for help.
That delay can mean missed estimated tax payments, overlooked deductions, and paying more in taxes than necessary.
And no one gets a medal for paying more in taxes than they have to.
- Hire a licensed tax professional as soon as you start earning business income. Starting the conversation while you set up the business is even better.
- Waiting too long can mean missed estimated tax payments, overlooked deductions, and less time to plan.
- Before you hire, ask about credentials, industry experience, references, and year-round support.
Get Guidance When You Start Earning Business Income
Your first business income is a good reason to speak with a professional. Even if you are starting small, you need to understand how to track your money and meet your tax responsibilities.
For example, someone who starts consulting while still working a regular job may be familiar with taxes coming out of a paycheck. Payments from consulting clients usually arrive without that withholding. The owner needs to understand how the additional income affects their overall tax situation.
Getting advice early gives you time to answer questions such as:
- How should I track business income and expenses?
- Which records should I keep?
- Do I need to make estimated tax payments?
- What changes if I hire employees?
- How often should we review my taxes during the year?
An initial consultation can help you identify what your business needs now and what support you may need as it grows.
What Waiting Too Long Can Cost You
Missed Estimated Tax Payments
Business owners sometimes assume they can settle everything when they file their annual return.
Federal taxes, however, are paid throughout the year through withholding, estimated payments, or a combination of both. Depending on your circumstances, paying too little or paying late can result in an underpayment penalty—even if your return ultimately shows a refund. The IRS explains how estimated taxes work. You can also see every due date on our key tax deadlines page.
A tax professional can help determine what applies to you and review your payments as your income changes.
That conversation is much easier to have while you can still prepare for upcoming payments.
Deductions You Overlook
Business owners can also miss deductions they qualify for because they do not recognize an eligible expense or keep the records needed to support it.
Good bookkeeping helps your professional understand what happened in the business. Early guidance helps you know which records to collect in the first place.
If you wait until filing season to organize everything, you may find yourself trying to reconstruct a year of transactions from bank statements and memory.
Less Time to Plan
Tax preparation reports what happened during the year. Tax planning helps you evaluate decisions while there is still time to act.
For example, discussing a planned equipment purchase before buying gives you an opportunity to understand its tax treatment and the records you will need.
Some issues can be corrected later. Other opportunities depend on meeting a deadline.
Year-round guidance gives you more time to consider your options.
Look for Help as Your Business Changes
My recommendation is to start early. If your business is already operating, certain changes are good reasons to schedule a conversation:
- Your income has increased or become less predictable.
- You are preparing to hire employees.
- You are considering a major business purchase.
- Your bookkeeping has fallen behind.
- You are unsure whether your estimated tax payments are sufficient.
- You want to review your business structure.
- You received a tax notice you do not understand.
You should have someone you can contact when these questions arise.
If you have been handling everything yourself, start with your current situation. A professional can help you identify what needs attention and establish a process going forward.
What to Ask Before Hiring a Tax Professional
Are You Licensed, and How Can I Verify Your Credentials?
This should be your first question.
Someone offering tax preparation services does not necessarily hold a professional license. A paid federal tax return preparer generally needs an active Preparer Tax Identification Number, or PTIN. Having a PTIN alone is not a professional credential.
Enrolled agents are licensed by the IRS. CPAs and attorneys are licensed through their respective licensing authorities. These professionals have unlimited representation rights before the IRS, although their individual areas of expertise vary. The IRS explains tax preparer credentials and qualifications.
Ask what credential the professional holds, whether it is active, and how you can verify it.
My recommendation is to choose licensed expertise and then confirm that the person has the experience your business needs.
Do You Have Experience in My Industry?
Credentials matter, and so does practical experience.
Ask whether the professional regularly works with businesses like yours. Someone familiar with your industry should understand how you earn revenue and know which questions to ask about your expenses and operations.
You might ask:
- What types of businesses do you typically serve?
- What tax issues commonly come up in my industry?
- Have you worked with businesses at my stage of growth?
- How would you approach reviewing my current situation?
Look for clear answers that relate to your business.
Can You Provide Professional References?
References can help you evaluate whether you are making the right decision.
Ask whether the professional can connect you with references who have agreed to speak with prospective clients. If possible, speak with someone whose business or service needs resemble yours.
Ask about communication, responsiveness, and whether the services matched what was promised.
What Support Do You Provide Throughout the Year?
Be clear about what you are hiring someone to do.
A tax preparation engagement may not include ongoing planning, bookkeeping, payroll setup, or advisory services. Ask which services are included, which cost extra, and how questions during the year are handled.
Useful questions include:
- Will we review estimated tax payments?
- Do you offer tax planning meetings?
- Can you help with bookkeeping or payroll setup?
- When should I contact you about business changes?
- How are your fees structured?
The IRS also recommends asking about fees upfront and confirming year-round availability when choosing a tax professional for a small business.
Make Tax Planning Part of Running Your Business
In my practice, tax preparation connects with bookkeeping, payroll setup, and the financial decisions owners make throughout the year. Accurate records and regular conversations help us identify issues earlier and evaluate opportunities to reduce taxes legally.
That is why I encourage business owners to seek help as soon as they begin earning income.
Start by checking credentials. Ask about industry experience and references. Then discuss the level of ongoing support your business needs.
You deserve to understand your tax responsibilities and claim the deductions and credits you qualify for. Getting professional guidance early gives you more time to do both.
How Morgan Tax and Business Solutions Can Help
If you ask those questions about my firm, here are my answers.
Am I licensed?
Yes. I am a licensed enrolled agent, and you can verify my credential in the IRS Directory of Federal Tax Return Preparers. Morgan Tax and Business Solutions is BBB accredited, and I am a QuickBooks Online ProAdvisor.
Do I know your industry?
We work with care provider agencies, daycare providers, beauty professionals, health and wellness providers, disability and waiver providers, coaches and course creators, and real estate investors. See the industries we serve.
What support do I give throughout the year?
We do much more than file your return. We offer tax preparation, tax planning, bookkeeping, payroll setup, tax resolution, and outsourced accounting. That way, your books, your payroll, and your tax plan all work together. Our fees are flat, and we quote them before we start.
The easiest first step is a free 20-minute consultation. We will look at where your business is today, what needs attention now, and what support makes sense as you grow. We meet with clients in our Bellevue, Nebraska office and virtually across the U.S.
So the next time you check your bank account and think, “We’re doing pretty good,” you will also know how much of that money is yours to use.
Frequently asked questions
When is the best time to hire a tax professional for my business?
As soon as you start earning business income. If you can, start the conversation while you set up the business, so you get guidance before you make decisions that affect your taxes.
Is a PTIN the same as a professional license?
No. A paid tax return preparer generally needs a PTIN, but a PTIN alone is not a professional credential. Enrolled agents are licensed by the IRS, and CPAs and attorneys are licensed through their own licensing authorities.
Can I owe a penalty even if I get a refund?
Yes. The IRS says you may have to pay a penalty if your estimated tax payments are late, even if you are due a refund.
How can I verify a tax professional’s credentials?
Ask what credential they hold and whether it is active. You can look up many enrolled agents, CPAs, and attorneys in the IRS Directory of Federal Tax Return Preparers.
Ready to start the conversation?
Book a free 20-minute consultation. We will look at where your business stands and tell you your options in plain language.
Ida Morgan, EA
Ida is a licensed Enrolled Agent and the founder of Morgan Tax and Business Solutions in Bellevue, Nebraska. She has prepared taxes since 2019. She also has 17 years of caregiving experience as a home health aide and a Shared Living Provider, so she knows the Medicaid waiver world from the inside.
This article gives general information only. It is not tax, legal, or financial advice for your situation. Tax law changes, and the right answer depends on your facts. Contact us before you act on this information.