How to Become a Tax Preparer and Start a Tax Business
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As a tax preparer, you prepare tax returns for individuals, small businesses and corporations. Start-up cost
is low and you can operate from your home. Your work schedule can be fairly flexible throughout the year,
except during tax season, when tax preparers generally are exrtemely busy.
If you like working with numbers, are detail oriented and can work well under pressure during tax time,
running your own tax business can be a great way to make money.
Start-up costs mainly include a computer, tax preparation software and education. Office phone, fax,
printer, an internet connection and other business supplies.
Licensing and education requirements for tax preparers vary by city, so you want to check with your local government
office for regulations that apply to you. Some states require that you be licensed to prepare taxes in
addition to having a regular business license. You also may need a surety bond. You need to pass an exam to
receive the license and then get the license renewed annually.
Generally you will need a high school diploma and you will have needed to complete a tax preparation
program. You can take a tax preparation course through community colleges, distance programs online and tax
companies like H&R Block.
Getting Started in Tax Consulting
Most people would prefer not to do their taxes, and taxes are not going away anytime soon, so opportunity
awaits those who want to prepare tax returns. The catch is that there is lots of competition, especially from
the giant tax preparation companies that have become household names.
When you set your service rates, you want to keep them competitive with what other companies are charging in
your area. Do your research and become familiar with how other tax businesses are serving their clients. Make
it as easy and painless for customers to do business with you, and they will return to you year after year.
- Learn how to break into the tax consulting business, even with limited education and training
- Discover how to find a tax service "niche", set fees, market your business, specifically for convenient
web-based businesses
- Get lots of valuable tax resources with contact information, including education and certification
requirements
- Click here >> Start a
Tax Consulting Business + Tax Preparation
Business Plan
Marketing Your Tax Business:
In a situation where you are competing against large, well-known companies, if can often work in your favor
to network in your local community and get to know people face-to-face. People want to do business with people
they like. If people get to know you through community activities and events and they see that you are a
friendly, reliable person who is knowledgeable in your trade, you can build your business on word of mouth
referrals alone.
Conduct a Tax Education
Workshop
By conducting a free workshop on a topic like "How to Get The Most Out of Your Tax Deductions", you can
demonstrate your knowledge and skills and advertise your business without spending a lot of money.
Become a "Betterist" on Betterfly.com helping site visitors learn new skills via your knowledge and experience.
It's great exposure for your tax business, plus you can promote special offers to gain new clients.
Get Free Publicity
You can get free in your local newspaper by writing a short press release about a newsworthy even that is going
on with your business.
Announce the opening of your business, along with an interesting story of how you got started, an event that
you're holding, a special discount that you're offering or how you are involved in the community. Editors want
to print stories that people are going to want to read about - so make it interesting. Your press release
doesn't have to be long, and you can find press release samples here: How to Get Free Press.
Sponsor a Meetup Group
Meetup is a website that hosts a wide variety of different interest groups in thousands of different locations.
Each of these groups has members with similar interests who generally live in the same area. This is a good way
for businesses to reach local clientele, but businesses don't have to be local, and you can sponsor multiple
Meetup groups.
Business Resources for Tax Preparers:
Tax Preparer Associations
- National Association of Tax Consultants
The NATC provides continuing education through programs, seminars, and conventions. They help maintain a
professional standard in the industry and act as a communication conduit between it's members and the IRS.
Members receive a certificate of association and can advertise their services on the NATC website.
- National Association of Tax Professionals
The NATP services it's members by providing the support, education, products, and services they need to
succeed in the tax profession. Their include CPAs, accountants, individual tax preparers, enrolled agents,
attorneys and financial planners.
