By 2018, taxpayers across the U.S. will pay a forecasted $11,000,000,000 (yes, that’s billion) to file federal income taxes. This number includes both the services at tax preparation businesses and online tax preparation software, but that’s quite a hefty sum of revenue to be generated almost entirely during the first quarter of the year. As we discussed in a previous post, the number is that large because nearly every adult in the country, citizen or not, working or retired, is required to file a tax return. In fact, it’s easier to list out the circumstances in which you are not required to file than it is to specify every instance in which you are. As a certified tax preparer, are you making the most of your highly-valued skills to tap into this vast and constantly growing market?
Why You Should Set Up Shop
If you’ve ever worked as a certified tax preparer between February and April, you’ve likely seen first hand just how high the demand is for local tax preparers, no matter how large or small an area you live in. As someone with skills that are in high demand, it’s only natural that you’ve been thinking about branching out and starting your own tax preparation business. You’re not alone there! Across the United States, the vast majority of tax preparation services are small businesses. More than half of the tax preparation businesses across the U.S. are operated by 10 or fewer people and nearly 40 percent are a business of one.
Starting your own tax preparation business means you can:
- Set your own hours and rate of pay—at the height of tax season, when the demand for local tax preparers is soaring, you could earn $100 an hour or more.
- Earn enough in three to four months to live on for the year—of course, living on what you’ll make during tax season for the other eight months will take careful planning and a solid budget, but it can be done!
- Get started quickly—with a tax preparation business affiliate program like the one we offer at Umbrella Financial Services, you can get your business up and running without franchise fees so you can get earning sooner.
Potential Pitfalls and Future Planning
Of course, the logical side of you may come back argue that tax season is only a couple of months long. Even if the revenue flows in like a waterfall for a couple of months, that may not be the best basis for a long-term business investment. Depending on your tax preparation know-how, it doesn’t have to be a part-time business, but you will definitely notice a slow in business once tax day and later extension dates have passed. Many local tax preparers take this time to focus on assisting local small businesses with their annual taxes, setting up payroll systems, and so on. However, plenty of certified tax preparers accept the highly seasonal nature of tax preparation. As you’ve undoubtedly seen helping others set up business plans for their own small businesses, proper planning can go a long way toward a successful business.
Starting a Tax Preparation Business
Whether you seek to start your own tax preparation business on a full-time or part-time basis, Umbrella Financial Services is here to help! We offer the best tax preparation software and support to help you start your business, in whatever shape that takes. We don’t charge franchise fees so you can get up and running faster, but that doesn’t mean we won’t be there to support you when you need it! At Umbrella Financial Services, we offer you round-the-clock support and IT help in both English and Spanish. If you aren’t certified yet, we can provide ownership training and I.R.S. tax law certification so you can be the knowledgeable source your tax preparation business needs in order to be successful. Our tax preparation software is offered both online and in a secure smartphone app for your convenience and that of your clients.
Whether you’ve been thinking about starting up a tax preparation business on a full-time or part-time basis, Umbrella Financial Services is here to help you start down the road to success. Contact us today to learn more about our affiliate program and the benefits we offer local tax preparers!