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How to Start a Tax Preparation Business

Guest post by: Sue Barrett

Article Overview: If you like filling out tax returns, are detail oriented and work well under pressure and deadlines, you may enjoy a career preparing tax returns for other people. In fact, you can even start your own tax preparation business on a shoestring budget.

How to Start a Tax Preparation Business

If you like filling out tax returns, are detail oriented and work well under pressure and deadlines, you may enjoy a career preparing tax returns for other people. In fact, you can even start your own tax preparation business on a shoestring budget.

Not only can you prepare tax returns for individuals, but also higher-paying small business and corporation returns. With an internet connection and fax machine, you can easily work from home, meeting with clients in your home office or at their offices or homes.

You can enjoy a generally flexible work schedule, but ready to be very busy at tax time. Many filers wait until the last minute, and you are likely to find yourself preparing several returns during a short period of time prior to the tax return due date.

Different cities and counties have different education and licensing requirements for tax preparers. You may need an occupational license as well as a regular business license as well as insurance and bonding. To get a tax preparer license, you will need to take a tax preparation course, pass an exam and then get your license renewed annually. Check with your local government office for requirements in your area.

Getting Started in Tax Preparation

Set up your home office with the equipment and supplies you need to start, such as a computer, fax, printer, internet connection, business cards, office supplies, office phone, stationary, invoices, etc. Establish the rates that you will charge clients. You want to stay competitive with other tax services in your area, so do a little research to find out what they are charging. To offer customers more value than other tax preparers, consider additional benefits that you can offer, like mobile service, evening or weekend hours, etc.

Finding Clients

When you are ready to start your business, one of the first things you want to do is establish a marketing plan. There is lots of competition in the tax prep field, and generally time is well spent networking with people you know. Word-of-mouth referrals can be a good source of clients for you - not to mention, it is free advertising.

People want to do business with people they know, like and trust. If people meet you via community activities and events, you can show that you are a friendly, reliable person who is knowledgeable in your trade. Another way to network is to host a free workshop on a subject such as "How to Get The Most Out of Your Tax Deductions". Hold it at a place of business, your local library or community center. This is an effective free advertising technique where you do not have to act like a salesperson - just be yourself.

There are also some websites where you can share your knowledge and teach others for free. Although you do not want to prepare taxes free of charge, giving small tax tips and advice can be a way of advertising your business and getting potential clients to trust you and come to you again for paid help.

There is also a website called Meet Up, where visitors can start activity groups, and members who have common interests can join. There are opportunities where you can sponsor one or several of these local groups that match your target market.

Once you start working with clients, make sure that you complete tasks on time, return calls promptly and make the tax return process as painless for them as possible. When you deliver good value, you can have many return clients giving you business year after year.

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Article Tags: tax accountant, tax business, tax consulting, tax preparation, tax preparation business, tax returns



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