Choosing the right cost segregation provider is a vital part of optimizing tax savings for your business. The provider you choose should be reliable, experienced, and capable of providing high-quality cost segregation services that fit your business needs. Below is a list of essential factors to consider when evaluating a cost segregation provider:
1. Provider's Experience and History
Look into how long the firm has been conducting cost segregation studies and the number of studies they’ve completed. A firm with a long history and extensive experience can be indicative of its expertise and reliability in the field.
2. Professional Qualifications
Determine if the firm employs degreed or professional engineers and tax experts with specific cost segregation experience. The technical and tax complexities of cost segregation require a mix of engineering and tax expertise for the best results.
Check if the firm employs any ASCSP (American Society of Cost Segregation Professionals) Certified Cost Segregation Professionals. If they do, ascertain what role these certified professionals play in the process. This certification ensures the firm adheres to high industry standards.
Find out if the provider utilizes a detailed engineering approach in their studies and whether they comply with ASCSP standards. This could demonstrate their commitment to quality and accuracy.
It’s important to know whether the firm outsources their cost segregation studies to a third party. If they do, there might be a disconnect in communication or a lack of control over the quality and timing of the study.
6. Professional Liability Insurance
Make sure the firm carries professional liability insurance. This is to protect against potential errors and omissions during the study.
7. Audit Support
Inquire about the firm’s strategy for defending their work in the event of an audit. A reputable provider should be prepared to stand behind their work and provide support during any IRS examination.
Ask for references if you’re still uncertain. Hearing from previous clients about their experiences with the firm can provide invaluable insights into the firm’s reliability and the quality of its services.
Remember, a cost segregation study is a complex process that can significantly impact your business’s financial situation. As such, it’s crucial to thoroughly evaluate potential providers to ensure you choose the one best suited for your specific needs.