How to pick the right tax expert for your tour or activity business

Tax season can feel daunting enough without having to explain your seasonal fluctuations, contractor arrangements, and travel-related expenses to someone who doesn’t “get it.” 

Not all tax experts understand the unique rhythm of running a tour or activity business, and picking the wrong one can lead to missed deductions, compliance headaches, or unnecessary stress.

Choosing the right tax professional goes beyond just filing your annual return. You need a partner who genuinely understands your industry and can help your business thrive throughout the year. 

Here’s how to find a tax expert tailored specifically to your tour or activity operation.

FareHarbor B.V. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before taking any tax action.

What kind of tax expert does your business need?

Understanding the difference between various types of tax professionals can help you choose the right fit:

CPA: Licensed and qualified for complex tax strategies, audits, and long-term planning

Certified Public Accountants (CPAs) offer extensive financial expertise. They’re ideal if your business needs strategic tax planning, assistance during audits, or comprehensive financial advice for growth and long-term stability.

Bookkeeper: Focuses on daily financial tracking and expense categorization

A bookkeeper specializes in the day-to-day financial tracking of your business. They’re essential for keeping your expenses and income accurately categorized, ensuring your financial records stay organized and up-to-date.

Tax preparer: Helps file returns but may not offer planning or advice

Tax preparers are proficient in preparing and filing your annual returns. However, they generally don’t provide ongoing strategic advice or financial planning services beyond tax season.

Pro tip: If you’re growing or planning to scale, hiring both a CPA and Bookkeeper often works best. One handles your daily details and the other helps steer long-term success.

Tax Pro Type	What They Do	Best For	Limitations	Good Fit For
CPA (Certified Public Accountant)	Licensed to provide strategic tax planning, audit support, and financial advice	Businesses with complex financials, multi-state operations, or big growth plans	Higher cost; may offer more than you need if you’re a smaller operation	Enterprise or growing mid-size operators
Bookkeeper	Tracks daily expenses, manages records, and organizes financial data	Keeping finances organized year-round	Not licensed to file taxes or offer financial strategy	Small to mid-size operators who need clean records
Tax Preparer	Files annual tax returns and ensures compliance	Seasonal or smaller businesses needing help with year-end filings	Typically doesn’t offer ongoing advice or planning	Solo operators or side businesses

 

Why tourism businesses need specialized tax expertise

Tour and activity operators face unique financial challenges that general accountants might overlook, including:

• Seasonal income swings: Your revenue can vary dramatically throughout the year, making consistent tax planning essential.
• Part-time or contract workers: Properly classifying and managing payments to these workers is crucial to avoid compliance issues.
• Travel-related deductions and expenses: Knowing what expenses qualify can significantly reduce your tax burden.

A tax professional familiar with these specifics can help you manage revenue fluctuations effectively and leverage deductions unique to your industry. Additionally, if your tours operate in multiple states, specialized expertise ensures compliance across different tax jurisdictions.

What to ask before hiring a tax professional

Finding a reliable tax professional often starts by asking for recommendations from fellow tour operators, your local chamber of commerce, or industry groups. 

Once you have potential candidates, consider asking these critical questions:

• Do you have experience with seasonal or tourism-based businesses?
• How do you help clients plan for estimated taxes and quarterly payments?
• Are you familiar with 1099-NEC filing and contractor payments?
• What tax-saving strategies do you recommend for operators like me?
• How do you prefer to communicate, especially during tax season?

Red flags when hiring a tax pro who doesn’t understand tourism

1. They treat your business like a retail store.
   If they suggest tracking revenue the same way a brick-and-mortar shop would — with no awareness of seasonality, variable pricing, or weather impacts — they may not be a good fit for your business.
2. They don’t understand seasonal income patterns.
   If they seem confused about why you might only be busy 4–6 months a year, they’re not prepared to help you plan for slow seasons or manage cash flow correctly.
3. They’ve never filed taxes for a multi-state or location-based business.
   Operators who run tours in multiple states (or even cities) need someone who understands different tax jurisdictions. If they’ve only worked with businesses in one state, they may miss important filings.
4. They can’t explain what travel-related deductions apply to you.
   You want someone who can help you claim deductions for things like gear, guide training, mileage, permits, insurance, and even FAM (familiarization) trips — not just basic office expenses.
5. They’re unfamiliar with 1099-NEC filings.
   If your team includes freelance guides, photographers, or seasonal staff, your tax pro needs to know exactly how and when to issue 1099s — and what triggers IRS scrutiny.
6. They don’t ask about your booking system or payment processors.
   A good tourism tax pro will ask how you track revenue (FareHarbor, Square, Stripe, etc.) and make sure your reporting aligns with your filings. If they don’t even ask, that’s a red flag.
7. They can’t help with tourism-specific compliance issues.
   Permits, local taxes (like Hawaii’s GET or bed taxes), or international traveler nuances can all be part of your world. If they’ve never heard of these, they’re not the right partner.

Find the right partner for financial success

Finding the right tax expert is about more than filing returns. It’s about partnering with someone who understands your unique business model and supports your long-term financial success. 

FareHarbor’s reporting tools give your tax professional everything they need to help your business thrive — explore the reporting capabilities now.