When considering a home business, a tax preparation business is a good one to consider. It requires little investment and little training, as anyone is qualified to do their own taxes. Here are a few things to consider if you are interested in pursuing a tax preparation business.
Training and Certification
If you have experience as an accountant or CPA, you already possess the skills needed for a tax preparation business. If you don't possess these skills already, don't worry. There's still plenty you can do. All people are responsible for doing their taxes, so it's a skill anyone can learn. You'd do well, however, to prepare yourself in one of two ways.
First, you can go to the IRS website and download all of the tax forms and information included there. Go through all of it thoroughly and make sure you understand it.
Secondly, you can take a training course from companies such as H & R Block or Jackson Hewitt or the IRS. Taking a course can net you a professional training certificate, which will help you when trying to find customer.
How much money you make depends on two factors: your pricing, your expenses and how much work you do. Your expenses are fairly low. Most of the money you spend on your business will be your initial investment. How much work you do will be covered in the next section under advertising, so let's focus on pricing for the moment.
The tax preparation industry is competitive, so your pricing should be as well. Research thoroughly the prices of other tax preparation businesses before you decide on your own. There are two major ways you can charge your customers. You can either charge an hourly rate or charge by how many pages you need to fill out.
How to Find Jobs and Advertising
Finding jobs may be the hardest part of a tax preparation business.
Begin by advertising well before tax season starts. Post flyers
advertising your business everywhere you can. Offer discounts to
customers who file early, and offer discounts or rewards for customer
who refer clients to you. Create a website that offers all potential
clients the information they need the most, such as services you
provide, your pricing, and so on. Your advertising should highlight your
particular skills and what makes you stand out from the rest.
One method of finding customers is offering your services to family,
friends and business acquaintances, especially those you know do not
currently hire a tax preparation business to file their taxes. Also,
network with other professionals, such as stockbrokers and attorneys.
They may be able to offer you referrals. Finally, it can be helpful to
specialize in one particular business you know well to look for clients.
You will be able to identify information that is commonly overlooked.
Requiring little investment, a tax preparation business can be a great way to supplement your income, particularly in those months following the busy holiday season.