The answer to the question of whether tax preparers can make money varies from individual to individual. However, it is safe to say that tax preparers can and do make a living all year round. Many of them supplement their income by providing services other than tax preparation. Earning money as a tax preparer is definitely possible, but there are certain things you can do to maximize your income. Here are five factors to consider when trying to maximize your income as a tax professional:
- Diversify Your Services: While some people may need help filing returns, requesting an extension, or modifying returns at the last minute, this is not likely to be a reliable source of income for the following year.
To ensure that you have a steady stream of income, consider diversifying your services by offering accounting services. Chances are, your customers are already asking you financial questions that go beyond taxes.
- Take Courses: To stay up-to-date with the latest changes in the tax code, consider taking courses offered by organizations such as the American Institute of CPAs and Surgent Income Tax School. You should also learn about the taxpayer representation process by taking courses such as those offered by the National Institute of Tax Practice of the National Association of Registered Agents (NAEA).
- Work for a Large Company: Working for a large company as a tax preparer can be very lucrative. According to Traceview Finance, large company tax preparers can process thousands of returns every tax season.
- Get Bonded: A tax preparer bond is a security bond that guarantees that you will meet your obligations to your client; that is, you will prepare your tax returns correctly.
- Offer Discounts: Offering discounts on tax preparation services is an excellent way to boost your business as a starting tax preparer.
You can start by offering discounts to people in your inner circle.
Most importantly, there are additional tax benefits and tax breaks offered to taxpayers over the age of 50. Tax accounting for businesses, corporations, and non-profit organizations requires the assistance of a licensed tax professional. One of the most rewarding aspects of a career as a tax preparer is helping clients who fear paying taxes.