Becoming a tax preparer is an exciting career option for those who are interested in finance, accounting, and helping clients with the complicated tax system. With constantly changing tax laws, individuals and companies rely heavily on experienced tax preparers to help them file taxes properly, accurately, and legitimately.
If you are looking to start your career or offer additional services as a financial services business, entering the tax preparation business gives you independence and significantly higher earning potential. Below are steps to help you start a tax preparation career by choosing a training program and other tools. Let’s delve into them:
Get the Proper Education with Tax Preparer Training Courses
It is important to have proper knowledge to become a tax preparer. Tax preparer training courses provide you with the foundational information you need to understand tax codes, deductions, credits, and filing.
- An in-depth understanding of IRS regulations and related forms
- Skills to deal with many clients and scenarios
- Confidence to prepare the most accurate returns possible.
- Preparation for tax preparer certifications (like the IRS Annual Filing Season Program)
- Help network with other professional tax preparers, tax firm owners, and other professionals.
If you invest your time in finding the right training, be sure to find an accredited program, whether online or in person, and find internships or volunteer opportunities. Formal training establishes your own credibility.
Set Your Business Objectives
Before you launch your tax preparation services, it’s a good idea to set goals. The goals you set will influence every aspect of your business. Here are some questions to consider:
- Who is your target client? Individuals, businesses, or both?
- Are you going to offer your services on-site or offline?
- What is your target income?
- How many clients can you take in a season?
Establishing a mission, vision, and growth plan earlier in the process can give you direction with regard to how you plan to spend your time and ensure efficient ways to market your business.
Ensure Proper Licensing
Being a tax preparer means that you must adhere to legal and regulatory requirements. Depending on your location, you may need to obtain licenses or register to legally begin your work.
- Apply for a preparer tax identification number (PTIN)
- It is important to look for the state’s licenses
- Consider becoming an Enrolled Agent (EA) for higher credibility.
As long as you have met your licensing requirements, your clients can trust your professionalism and your commitment to service by ethical principles.
Have the Best Tax Preparation Software
The right tax software is an essential part of making your job easy. You will likely make fewer mistakes, and the client experience will be much better.
- IRS compliant and updated for current tax laws
- User-friendly software with error-checking functions
- Secure client data storage and encryption
- Ability to integrate with accounting programs
- Ease of access to technical support and training
Investing in reliable software can offer you efficiency, accuracy, and the ability to grow your tax preparation business.