Is a Tax Preparation Business right for you?
The tax industry is a delicate balance of chaos and repetition. Yearly updates on tax law, form revisions, tax software, and tax professional education requirements keep tax professionals busy during the off season while peak season shows just how truly chaotic tax season can be. Every tax professional will develop their own methods of preparing for the rush of peak tax season but getting through it can still be rough. Oftentimes, the demands of peak tax season are what will help a preparer decide if this is an industry in which to develop a career.
There are some industries where technology and occupational advancements happen slowly, allowing for a one-time training period that prepares you for your occupation. The tax industry is the exact opposite of that. Becoming a tax professional means that you will undergo constant training in many areas such as tax law, cyber security, organization, and software functions. Each of these areas of a tax preparation business will constantly change due to technology, public policy, and cyber threat advancements.
With such a high rate of industry change, as a tax preparer, you will be required to do continuing education courses. While you can take the courses that you like, this is an opportunity to specialize in a particular area. Beyond that, to make your specialization more meaningful, you can study to become an AFSP or an Enrolled Agent. The latter is the highest designation of tax professionals issued by the IRS. Becoming an Enrolled Agent will add value to your tax preparation business, service, and confidence to your tax business name.
Along with your new designation comes a higher earning potential. Now that you are an Enrolled Agent, you have the capability and understanding of tax law well enough to do the most complicated returns. The more complicated the return, the higher the cost of the service, thus increasing your earning potential.
One can make a yearly wage in those 4 months of peak tax season, but continuing to work throughout the year allows one to provide more options to your clients such as extensions, amendments and potentially representation work if the need presents itself.
If you’d like to speak to a representative about your interest in becoming a tax professional, feel free to call us at 1 (866) 357-2052 to speak to a representative.
Posted: August 7, 2017