Have you hired the right tax accountant?

Have you
hired the right tax accountant?

Tax
Planning

Five
signs you’ve chosen the right accountant; two signs that suggest proceeding
with caution.

Not everyone
needs a professional in their corner come tax season. For some, tax software
might do, perhaps followed by a professional review. But for those with K-1s to
contend with from master limited partnerships, complicated business structures,
income from multiple states, major life transitions or other prickly tax
scenarios, a strategic, knowledgeable numbers pro may be valuable when it comes
to tax planning, as well as preparing and filing your personal or business
taxes.

Here are a
few signs that you’ve found the right professional and two that may indicate
it’s time to reevaluate. These aren’t hard-and-fast rules, merely guidelines.
Don’t forget that your advisor likely has relationships with accounting
professionals and can let you know what to expect, so tap into that experience
if you need to.

1.
They have good ideas before you do.

Your
accountant should be proactively leading the tax strategy conversation,
collaborating closely with your other professional advisors. Just expect those
in-depth discussions to happen before or a bit after the hectic 13 or so weeks
comprising tax season. They’re only human.

2.
The shoe fits.

Your
accountant should have experience in your particular situation and be capable
of thoroughly researching rarer issues. Invest in private companies? Your
accountant should be familiar with K-1s, notoriously tardy reporting documents
for partnerships that often demand specific expertise and amendments or
extensions beyond normal tax-filing deadlines. Work in a particular industry or
run your own business? Dealing with foreign affairs or global investing?
Experience is vital in these complex arenas. It helps, too, if your values
align with the person who’ll know every detail of your financial life.

3.
They’re in the know.

Your
accountant should have their fingers on the pulse and ear to the ground. The
laws surrounding personal and business deductions change frequently (see the
One Big Beautiful Bill Act), so an accountant should be well-versed in ways to
help you legally maximize your return (e.g., bunching charitable contributions
in order to exceed the $32,000 standard deduction for married couples filing
jointly, in 2026). Expect your accountant to be up to speed on regulatory
changes as well as current tax law, and to keep you informed in language you
understand.

4. Their
reputation precedes them.

You’ll
likely want to work with someone who has been vetted and recommended by people
you know well and trust. Consider an accountant who is part of a professional
organization (e.g., the AICPA) with continuing education standards and
qualifications or has certifications in the type of service you need.

5.
They’re accountable for what they say and do.

Your
accountant should be responsive, responsible, trustworthy and transparent. He
or she doesn’t have to be an expert in everything, but should be able to
research an issue and get back to you as needed. Prompt, honest communication
paired with a proposed solution is what you’re looking for. This is a
relationship that should last, so it’s important to build on a strong
foundation.

Proceed
with caution if:

They have
their head in the sand.

They do not
have secure systems in place to keep the practice going in case of emergency or
to protect your private information.

They’re
an artful dodger.

If you’re
working with an accountant who suggests something that sounds more like dodging
taxes rather than minimizing them, look elsewhere. You don’t want to be on the
wrong side of the law or the ledger.

Pendle Hill Advisors is proud to
contribute to the Montgomery County News with our weekly curated financial news
and topics. If you have any questions about the markets, your financial plan,
or anything, please feel free to reach out to our office for a no cost initial
consultation.

Kent Pendleton, AAMS®

Financial Advisor, RJFS

Pendle Hill Advisors LLC

14375 Liberty St, Ste 109 | Montgomery,
TX 77356

T 936-297-8267

Kent.Pendleton@raymondjames.com | www.raymondjames.com/pendlehilladvisors

Material created by Raymond James for
use by its advisors. Securities offered through Raymond James Financial
Services, Inc. Member FINRA/SIPC. Investment advisory services are offered
through Raymond James Financial Services Advisors, Inc. Pendle Hill Advisors is
not registered broker dealers and is independent of Raymond James Financial
Services.

Raymond
James and its advisors do not offer tax advice. You should discuss any tax
matters with the appropriate professional. All expressions of opinion reflect
the judgment of Raymond James & Associates, Inc., and are subject to
change.

This
material is being provided for information purposes only and is not a complete
description, nor is it a recommendation.

Sources:
irs.gov;