If you have a knack for numbers, statistics, and accuracy, becoming a tax preparer might be the ideal career for you. With plenty of people looking for support with their taxes, it is one of those professions where the target market is virtually endless.
To reap full rewards of this abundant and profitable market, you need to start your own tax preparation business. In contrast to working for a tax firm, it helps you operate as a reliable service provider while also maximizing your revenue.
To help you through the steps, here’s how to start a tax preparation business in an easy yet effective way.
1. Register Your Business
To start your tax preparation business as a reliable entity, you need to register your business with the proper authorities.
This requires you to put together a business structure, decide on a business name, and have proper funding as well as infrastructure.
Depending on the state that you live in, the requirements to register a business may vary. Make sure that you are looking into all prerequisites before starting the process, which allows you to complete it smoothly.
2. Obtain the Required Credentials
Once you register your business, you will also need proper credentials at hand. These credentials include verifiable registration with the Internal Revenue Service (IRS).
This comes in the form of a preparer tax identification number (PTIN) and electronic filing identification number (EFIN), where the latter also requires you to have an IRS e-Services account.
Obtaining a PTIN is quite easy and can be done within a few minutes. However, acquiring an EFIN requires additional procedures such as a background check, which may take up to 45 days.
3. Get Purpose-built Software
The next step comes in the form of getting tax preparer software. These solutions are purpose-built to make tax preparation easier for professionals. In turn, they give you the ability to be on par with your competitors, and earn trust from your customers.
Even if you have never used such a solution before, getting acquainted with a modern and well-designed user interface (UI) only takes a few hours at most. Using such software makes you more productive and saves you from redundant manual tasks.
Additionally, you can easily streamline client communication through tools such as scheduling software and video calling software to reach your clients more conveniently.
4. Choose a Business Model
You also need to determine what type of tax services you will be offering through your business. From managing taxes all year round to handling them only during tax season, you have multiple fields to make your selection for your operation.
Similar to how education impacts entrepreneurship, choosing a niche also influences your business’ success and overall approach. That is why you should take your time in deciding whether to serve individuals, businesses, or a mix of both.
This lets you streamline your operations and allows you to utilize digital and online marketing services in a more coherent manner.
5. Reach Out to New Clients
Whenever you start a new business, you need to attract new clients to your operation before you can generate invoices with modern tools. This also holds true for tax preparers.
In order to welcome new clients onboard, make sure that you have an effective marketing strategy. Apart from a mix of conventional and online advertising, this also calls for giving clients incentives to use your services.
This can be done via highlighting your specialized experience, outlining your proactive customer service, and showcasing your competitive rates. Using a customer experience management software for gathering reviews also works wonders.
In Conclusion
By keeping these steps in mind, you can easily establish your tax preparation business in a seamless and worryless manner. You just need to make sure that your services, outreach, and rates can stand their own in front of competitors. With consistent focus on accuracy, efficiency, and outreach, you can grow your operation to its aspired heights.
