There is a growing trend for entrepreneurs to start a tax preparation business and with the current changes in the industry, this might be the best time ever to consider if you want to start a tax preparation business venture.
Contrary to conventional wisdom, tax preparers are busy year round. Because business must file their taxes quarterly, a good tax preparer can accommodate small businesses as clients. Of course, the busiest time of year will be from February to April, but there is plenty of business to be had the rest of the calendar year
Whether you live in a city or in a rural town, everyone has to file taxes and a disproportionately large portion of the population look for assistance in this endeavour.
The question surrounding whether or not to start a tax preparation business is not whether there is a public demand for the service, but do you have the necessary skills and know how to make it work.
Preparing other people's tax returns can be a lucrative and personally rewarding business, particularly if you enjoy helping people get through stressful experiences. If you are able to accurately and efficiently prepare even the most unusual tax returns, save the customer money and give good customer service then you are more then likely going to enjoy repeat business for many years, particularly from grateful clients.
You can easily start a tax preparation business from home, with your computer and printer set up your ready to go. Meeting clients at a coffee shop or at their home or place of business gives that feeling of a personal touch rather then the formal office setting.
Ideally to start a tax preparation business you will all ready have experience in the field however if you don’t then you need to educate yourself and gain the certification you require.There are a number of ways of doing this, lots of colleges offer courses that can help you.
Selecting a Tax Franchise is another option that you could explore however typically this will require a significant initial capital investment, but on the upside it will provide more structure and brand recognition.
Franchises also require that you contribute a percentage of your gross revenue back to the corporate franchise. These fees are very important to factor in when doing analysis and comparing the franchise option to other methods of getting your tax business started, as splitting up your gross revenue has a considerable impact on your businesses break even capabilities. Read more on selecting a franchise in our Franchise section of the website.
Another model for starting a tax preparation business is to join a Tax Prep Partnership. These partnerships generally offer considerably cheaper initial capital requirements versus franchise options. Partnerships provide tax software, tax preparation training, office operational models, tax and technical support, and marketing programs. Most of these services are very comparable to what franchises offer, but what you do not get is the national brand awareness. For the tax preparation industry, it seems that the trend is moving away from franchising and toward partnering. This is due to several factors. Tax preparation is a personal transaction or service. The personal information that must be shared for the service to be completed properly promotes a more personal relationship with the tax preparer. Personal services are not like selling a commodity; the consumer looks more at the level and competency of the tax preparer as opposed to simply the name on the door. Tax prep partnerships also lend themselves to providing tax business owners with a considerably faster break even and profitability in the first year of operation. Go to Home page from start a tax preparation business