Did you know that the global tax preparation services market is set to reach $13.9 billion by 2027?
Starting a tax preparation business is one of the best ways to make money in today’s economy. You can work from home, set your own hours, and help people get their taxes done correctly. It’s an easy way to start earning a serious income!
People are always looking for ways they can save money on their taxes, so there’s never been a better time than now to start preparing them yourself. With so much technology at your disposal, like professional tax preparation software, it’ll never be as easy as it is now to start and grow your own tax preparation business.
And the market is wide open for anyone who wants to take advantage of it. In fact, tax preparers can make up to $100,000 in just three months. And you can say goodbye to the usual 9 to 5 working days. But these are not the only incredible benefits. Read on to discover the top 5 benefits of starting a tax prep business.
1. You Can Earn Good Money
Even at the beginning of your tax preparation career, you can earn approximately $21 per hour. This can increase based on your experience level, the type of tax you can help prepare, and where you are situated. Understandably, the more experience you have, the more you can charge for your hourly rate.
However, when starting your own tax preparation business, you will have higher earning potential than working for another business, especially if you begin working from home.
Whilst working from home, you won’t have any overhead costs, so whatever you earn will be almost all profit. For instance, if you charge $300 per client and serve 150 clients between January and April, you’ll make $45,000. If you can manage more clients than that, you’ll end up earning more than most people make in a year in just three months.
2. You Don’t Have to Work All Year
One very attractive benefit of starting your own tax prep business is you only have to work intensely for three months and then you get to sit back and reap the rewards for the rest of the year. And adding further services to your toolbox like bookkeeping, financial services, and even taxpayer representation will ensure that money is flowing into your business even outside of tax season.
However, if the idea of having lots of free time throughout the year sounds appealing to you, you can focus on working extremely hard on those three months and still earn amazing money.
3. Your Holidays and Summers Are Free
Another amazing benefit of running your own tax business is the flexibility that it offers. If you choose to work incredibly during tax season, you are able to take month-long vacations in the holiday and summer seasons. This is an even better benefit if you are a parent who wants to spend more time with their children.
If you can work hard during the tax season and bring enough money in, you can spend the rest of the year focusing on other passions of yours, businesses, traveling, or just relaxing.
4. You Control How Much You Work
As the owner of your own business, you can decide how much or how little you work. You can choose to take on more clients or take time off to recharge. It’s your decision to either expand your business or keep it at a minimal level as the sole tax preparer. It all depends on what you want your lifestyle to be like. Either way, you don’t have to answer to anyone but yourself.
This level of control over your own business and life will give you the sense of total freedom that everybody craves.
5. You Can Start at Home
Finally, another amazing benefit to starting your own tax preparation business is that you can start it from your very own home. Although this has its advantages and disadvantages, it means you can get started immediately without having to invest a ton of money to get it going.
By developing your tax knowledge and professional tax software, you’ll have everything you need to start generating clients and preparing their taxes for them!
You shouldn’t overthink the process. You really can get started right now, from your couch.
There has never been a better time to start a tax preparation business than right now. With the IRS reporting that more than 151 million will file their taxes this year, it is clear there is an increasing demand for professional help with preparing and filing personal income taxes.
Don’t wait any longer. Learn how to start a tax preparation business today with Taxbiz, the best tax course online, and get the ball rolling for your new life.
Want More Help Starting a Tax Preparation Business?
Starting a tax preparation business from home can be overwhelming due to the amount of information and setup that is included. And it can be especially hard if you have only a few years of experience in the tax industry. Despite this, there are tons of amazing benefits that come with it, and making that leap of faith will be worth it for you.
We hope this article has given you tons of value and hopefully inspired you to begin your journey in the tax industry.
However, if you’d like more help, you can visit our blog where we have tons of articles on the steps to starting a tax preparation business. Check them out today for more help!