It’s tax season once again! Are you a new tax preparer? Do you plan on starting your own business? Well, now is the perfect time to start your business.
The best feature about starting your own tax preparation business is how easy it is. You don’t have to rent out an office or buy expensive equipment right away. You only need to secure your permits, get the best tax software, and start acquiring clients.
But, did you know you can offer more services aside from tax preparation? Yes, you can grow your business and sustain it beyond the tax season.
Why should I offer other services?
First, tax preparation is only crucial from January to April. Although have a 9-month vacation is ideal, you can provide other services to your clients from May to December. You won’t get bored, and you’ll earn more money, which you can continue investing in your business.
Mind you, tax preparation is a lucrative business in it of itself, once you have a good number of clients. However, when you’re starting out, you may not be able to afford to fund your 9-month vacation.
Second, you can retain your tax preparation clients longer. When you can add more value to your core service, clients that you’ve acquired during the tax season will continue working with you. It’s also another opportunity for you to satisfy your clients’ needs. If they’re satisfied with your work, they won’t think of looking for a different tax preparer for the next tax season.
Third, you can acquire more clients when you expand your services. Acquiring clients does not end after April. You need to consistently acquire clients to be able to grow your business. Providing other tax services can help you with that. You can get new clients for the next tax season from May to December.
What other services can tax preparers offer?
Here are some of the services tax preparers can offer to increase profit and grow the business:
- Corporate Tax FilingMost new tax preparers offer tax filing for individuals. At the start of your tax preparation business, your first clients would be your family members, friends, and members of your Church or organizations. You can also broaden your client list by offering corporate tax filing.Start by approaching friends and family who have small businesses. You can also talk to your local business owners, and pitch your services to them.
Just remember, there are differences in tax filing for corporate and for individuals. If you plan to work on both types of tax filing simultaneously, make sure you don’t overcommit and acquire too many clients. You wouldn’t want to make a mistake when filing individual and corporate taxes.
As a tax professional, you can offer accounting services related to taxes such as tax planning and assistance in preparing and compiling financial statements. Tax preparers who are Certified Public Accountant (CPA) may offer estate and financial planning. In some states, you need to be a Certified Public Accountant (CPA) to offer this service. If you don’t have a license, better check if you can provide accounting services in your State.
Tax preparers, with or without any CPA license, can provide bookkeeping services. Tax preparers can perform various bookkeeping tasks such as:
- Billing for your client’s goods sold or services
- Recording receipts
- Recording invoices received
- Monitoring client’s accounts receivables
- Providing financial reports
- Monitoring the client’s tax transactions
An advantage of doing bookkeeping tasks for your clients is that you’ll be knowledgeable of the transactions related to tax filing. You can speed up the processing of your client’s tax filing for the next tax season!
Other tax preparation services related to insurance or sales tax could be another service you can provide to your clients. Filing taxes related to insurance or sales is a good extension of the income tax filing service you initially provide.
Additionally, you can get the required licenses so you can provide financial planning for your client’s insurance, estate, and retirement plans.
Getting into the tax preparation business is very profitable. There are many ways to get revenue from the services you can provide. You don’t have to stick to just tax preparation and filing services. You can expand your business by providing more services to your clients.