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- 1). Take a tax course. Regardless of your experience level, you can get the training you need to succeed as a tax preparer. You can learn tax preparation through online income tax courses. Most of the national tax preparation chains such as Jackson Hewitt and H&R Block offer tax preparation training courses just before tax season. The Internal Revenue Service even offers tax preparation courses in exchange for volunteering for a few hours a week to help man their tax help line. Details are available at the IRS website.
- 2). Set up shop. Set up a noise-free dedicated area in your home, such as a spare bedroom or your den, to conduct business. You will need access to a telephone, a computer with high-speed Internet connection, and a fax machine. You will also need a printer. If your budget allows, consider a laser printer, as your printing volume would make the cost of frequent replacement of ink cartridges in ink jet printers very expensive. Download the various tax forms from the IRS website. Get all your office supplies, such as pens, notepads, stapler, paper clips, envelopes, and stick-on note slips, from your local office supply store.
- 3). Use one of the tax preparation software packages for speed, efficiency, and accuracy. The benefits are enormous. They prompt for the required information, do the calculations, and fill out the forms -- all done automatically. Upon completion you save your client's file on a disc or memory stick for future reference. Finally, the software packages enable you to electronically transmit the tax return to the IRS.
- 4). Determine your fees. Your fees will depend in part where where you live. Do a competitive analysis to find out what your competition is charging. The best way to find out what your competitors are charging is to ask. Call around and get quotes.
You want to avoid overcharging, as this will place you at a competitive disadvantage. If you undercharge by a significant amount you diminish the value of your service in the eyes of your clients. Tax preparation fees are typically set on a per-page basis. This can range from $15 per page on the low side to $25 per page on the high side. Do your homework and assure yourself that your fee schedule is appropriate for the market you serve. - 5). Market your business. Your success depends on your understaning that you are not in the tax preparation business per se: You are in the business of marketing a tax preparation service. If you do not aggressively market your service, you can anticipate being as busy the memorable Maytag Repairman. Figure out how to explain in one sentence why it makes sense to do business with you (known as the "value proposition"). Start your marketing by plucking the low-hanging fruit. These include family members and friends. Then expand your effort with flyers at your church or place of worship. Use bulletin boards at the local supermarkets.
- 6). Take care of your customers. It is always easier to keep the clients you have than going through the effort of getting new clients. As you build your client base, treat them as you would your own private little money tree sprouting dollar bills in your backyard. You want to give your clients every incentive to do business with you next year as opposed to moving their business over to your competition. Pay attention to the little courtesies such as timely turnaround, thank-you notes, prompt returns of telephone calls, copies of tax returns.
Learn the Tax Preparation Business
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