Why Become a Tax Professional and How to Start Your Business
Do you love numbers, and enjoy working with people? Are you looking for a new, flexible career? You might consider tax preparation.
Tax preparation can be a very rewarding career for the right person. It can also be quite lucrative, and it offers many growth opportunities. You may even decide to start your own tax prep business.
This article will look at why you may want to become a tax professional and how to start your business.
What Does It Take to Become a Tax Professional?
Tax professionals prepare and file general tax forms. They may also defend a client with the IRS on audits and tax court issues. They must assist their clients in getting the highest returns possible without violating IRS laws.
To become a tax preparer, you must:
- Complete a beginner tax preparation course (click here to view if your state has specific requirements)
- Get a Preparer Tax Identification Number (PTIN) from the IRS
If you want to be successful, you will also have to get familiar with tax prep software and develop a marketing campaign to attract clients. It takes about 2 seasons to get all the requirements in order and a few years until you may be skilled enough to take it to the next level. But it’s a comparatively easy and inexpensive career move to make.
Benefits of Becoming a Tax Preparer
There are many benefits involved in becoming a tax preparer. Here are some to consider.
- Good Income: A tax preparer can set their own value based on experience.
- Low Overhead: It’s relatively inexpensive to get started in the tax business. You will need to pay for licensing, a bond, registration, training, office supplies and software. You will find these expenses to be affordable as compared to other career start-ups. You can save even more money if you choose to work from home.
- Flexible Hours: A tax preparer can decide how many clients they want to take on and when they want to work. While tax season is typically busy, it only lasts 3-4 months of the year. You can spend the rest of the year vacationing, or you can learn other related skills such as bookkeeping and financial planning, to stay busy year-round.
- It’s Rewarding: According to statistics from Wolters Kluwers, 89% of people say that their tax preparer is their most trusted source of tax information ranking even above the IRS. This makes it a very rewarding career.
Why Start a Tax Business
Once you get a tax prep certification, there’s plenty of opportunities for growth. For example, you can work for a tax prep company, or you can start your own business. Starting your own business means you can work on your own, or you can get people to work under you to increase your earning potential.
Here are some benefits of starting a tax business:
- Better Than a Franchise: Starting your own tax business is better than opening a franchise as it does not require high startup frees and royalty payments. It also gives you complete creative control over your business.
- Unlimited Growth Potential: Once you open a tax business, you can continue growing by marketing to more clients, and hiring other agents to work under you. You can also open new locations to bring in more income. You can branch out by offering additional services such as financial consulting, tax prep education, bookkeeping, accounting, and insurance.
- It’s Easy and Inexpensive: Starting your own tax prep business is as easy as getting your certification, bond, and supplies. Once you get clients in the door, it’s official. You can go from there to grow your business. You can also go the virtual route to save money.
If you are looking for a new career, tax prep is an ideal option. It’s easy, inexpensive and it offers unlimited flexibility and earning potential. Will you be considering it as your new source of income?
Ready to get started check out the courses below.