What you should know—and do—to expand your tax preparation business.
If you’re thinking about getting into tax preparation or if you’ve only done taxes a few times, there are several steps you need to take to ensure you achieve your goals. Although many of these steps seem obvious, ignoring any one of them might cost you money and effort.
So, let’s take a look at the seven steps to get success as a business tax preparer.
Step #1 – Get the Necessary Education and Training
Since most U.S. citizens must file a 1040 tax return each year, learning how to do so is a wonderful move to get started.
On the other hand, it’s worthwhile to consider obtaining tax compliance training via webinars, live classes, online courses, or even audiobooks for small enterprises, estates, and trusts.
Step #2 – Make A Plan for Your Business
A business tax preparation totally depends on the nature of the business. You are investing time and money in setting it up, so you must have a plan.
Sit down and write down your short-term, mid-term, and long-term goals for your firm, including the types of services you would like to provide, how much you’ll charge for them, and when you might want to hire employees.
Step #3 – Ensure Proper Licensing
Tax preparation businesses must comply with state and federal licensing standards, which vary by state and are subject to change regularly.
In addition, to prevent suspension and fines, ensure you’ve enrolled for a PTIN (Prepare Tax Identification Number) and an EFIN (Electronic Filing Identification Number). Also, you must have completed all necessary continuing education credits.
Step #4 – Search for the Best Tax Preparation Software
Tax preparation solution is one of your most important investments. Consider preparing accurate tax returns easier by using a comprehensive tax preparation software solution.
This solution allows you to import client data, auto-populate, and link tax forms, and identify any errors before e-filing and sharing the return with the client.
Step #5 – Leverage Tools for Efficiency
Once you understand the fundamentals of technology, you may add tools to increase productivity, profitability, and client happiness.
Paperless document storage, safe client portals, e-sign capabilities for remotely signing tax returns, and other services are provided by different tech-based business tax solutions providers like TaxWise®.
Step #6 – Go Beyond Your Clients’ Expectations
Even with excellent service, it’s probably true that the majority of people have trouble preparing their taxes. They do, however, look to you for assistance on questions, cost savings, and future planning.
Establishing a self-serve document portal, utilizing a mobile app for e-signing, and communication with clients—even outside of tax season—will make doing business with you easy and pleasurable.
Step #7 – Make your practice stand out.
Clients can easily pay for their tax preparation fees via return transfers rather than having to pay for them out of pocket. When filing online, opting for a refund transfer instead of a traditional tax refund check delivered by the IRS might expedite the process of tax refund disbursement.
