What is Tax advice?
Tax advice is a financial professional’s expertise and guidance through effective tax planning strategies and complex situations. It involves a deep understanding of current and emerging tax law as it applies to specific circumstances.
A good tax advisor has a strong background in accounting, finance, and business strategy. Unlike accountants who focus solely on preparing and filing tax returns, tax advisors are constantly up to date on new and changing tax laws, helping their clients minimize taxes while remaining compliant.
In addition, they can help clients find tax deductions they didn’t know about and develop efficient strategies for lowering their tax liabilities. Tax advisors can also assist clients with navigating life events, such as a home purchase, marriage or divorce, or the birth or death of a loved one, from a tax-related perspective.
For example, tax advisors can help their clients defer income into future years by using retirement or non-qualified deferred compensation plans. This can reduce their taxable income in their high-income, working years and save them money on taxes later.
To be a good tax advisor, you need to be detail-oriented, analytical and have a mathematic ability. This career requires strong attention to detail, as mistakes can cost you and your client. A good tax advisor will be able to quickly understand complicated financial information and provide a clear and concise analysis to their clients. Ideally, they will be a certified public accountant (CPA), or an enrolled agent (EA) with significant experience in complex tax matters, such as startup equity compensation and small business. Steuerberatung