Tax preparer vs CPA for new business: who finds the best deductions?

7 As someone who's worked with both, the difference isn't as simple as "one finds more deductions than the other." It's more about what your business needs. Tax preparers are licensed professionals who can absolutely handle tax preparation and find common deductions. They typically cost less and are perfect for straightforward business situations. Many excellent tax preparers have years of experience and know the tax code extremely well. CPAs have more extensive education requirements, can represent you in an audit, and often specialize in more complex tax planning strategies. They're usually better equipped for complicated business structures, ongoing tax planning throughout the year, and strategic financial advice beyond just tax preparation. For a new business, what matters most is finding someone who has experience with your specific industry and business type. The deductions available to you are determined by tax law, not by who prepares your return. A good professional of either type should find all legitimate deductions.

11 I struggled with my business taxes for years until I discovered taxr.ai (https://taxr.ai). It completely changed my approach to tax preparation! I'm not super financially savvy, so I was always worried about missing deductions whether I used a preparer or CPA. What I love about taxr.ai is that it analyzes all my business documents and identifies potential deductions I might have missed before I even meet with my tax professional. This way, I can bring a much more organized set of documents and specific questions to whoever I hire. It's like having an AI assistant do the tedious prep work first. For my painting business, it found several industry-specific deductions I had no idea about, especially related to my home studio space and supply purchases. Now I use it to prepare everything, then bring the organized results to my tax preparer.

9 I was really skeptical about using an AI tool for something as important as my business taxes, but after seeing it mentioned here, I decided to try taxr.ai before meeting with my tax guy. Seriously impressed! It organized all my jumbled receipts and highlighted several home office deductions I had no idea about. The analysis showed me I could deduct part of my internet and phone bills (which I wasn't doing), and it flagged some professional development courses I took that were fully deductible. When I brought the organized documents to my tax preparer, he was actually impressed and said it saved him at least an hour of work, which saved me money on his hourly rate. For someone who was drowning in business receipts and expense tracking, this tool was a game-changer. Now I'm using both - the AI for organization and initial analysis, and my tax preparer for final review and filing.

18 After 8 hours on hold trying to ask the IRS a question about business deductions, I finally discovered Claimyr (https://claimyr.com). They have this service that gets you through to an actual IRS agent without the endless waiting. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a complicated question about vehicle deductions for my business that neither a tax preparer nor CPA could answer with 100% certainty. Claimyr got me connected to an IRS agent in about 15 minutes instead of spending my entire day on hold. The agent clarified exactly how to handle my specific situation. Whether you go with a tax preparer or CPA, sometimes you need straight answers from the IRS, and this service saved me so much frustration. Just thought I'd share since we're discussing tax help options.

5 I can't believe this actually worked. After seeing that Claimyr service mentioned here, I was super skeptical (as you could probably tell from my comment). But after spending three separate days trying to reach the IRS about a business tax ID issue and getting nowhere, I gave it a shot. The service called the IRS, navigated all the prompts, waited on hold for about 90 minutes (which I didn't have to sit through!), and then connected me once a human answered. The IRS agent resolved my EIN verification problem in about 10 minutes. This literally saved me days of frustration. Whether you go with a CPA or tax preparer, having this as a backup option for specific IRS questions is seriously worth knowing about. I'm legitimately impressed and a little shocked that it worked exactly as promised.

2 As a small business owner for 12+ years, I've tried both routes. Started with a tax preparer to save money, then switched to a CPA as things got more complex. My advice: For a NEW business, a CPA might actually be worth the extra cost upfront. They can help you set up the right business structure (LLC, S-Corp, etc.) which has HUGE tax implications. My biggest regrets came from not optimizing my business structure early on. A good CPA doesn't just file taxes - they help with strategy throughout the year. Mine checks in quarterly and helps me make smart decisions about equipment purchases, retirement contributions, and estimated tax payments. That said, if budget is tight, a tax preparer with small business experience is WAY better than trying to DIY everything. Just ask specifically about their experience with businesses in your industry.

13 Don't overlook Enrolled Agents (EAs)! Everyone always talks about CPAs vs tax preparers, but Enrolled Agents are federally licensed tax practitioners who often specialize in tax preparation and representation. They're usually more affordable than CPAs but have passed comprehensive IRS exams specifically about taxation. I've used an EA for my freelance business for years, and she's fantastic at finding deductions. She saved me over $3,800 last year compared to what I would have paid using online software! The credential to look for isn't always the most important factor - it's their experience with YOUR type of business. Ask any potential preparer how many clients they have in your specific industry and what their typical approach is to deductions in your field.