If you start a tax preparation business in the United States (US), you can earn up to 100/hour. And as per the Bureau of Labor Statistics, this career is expected to grow by 2.9% by 2026. Millions of people every year hire professionals to file their taxes, and the number is increasing every year with the government making frequent amendments.
In addition, It’s now more crucial than ever for taxpayers to claim all of the credits and deductions due to them and pay no more in taxes than what they owe because of the recent changes to the U.S. economy.
With the increasing number of Taxpayers, starting a tax preparation business is very beneficial.
You do not need any professional degree to start a tax preparation business.
Here are a few skills you might need:
1. Interpersonal Communication Skills
Are they not important in every business? The greatest tax preparers are able to speak with clients straightforwardly and honestly so they can benefit from as many tax reductions as possible. Developing your interpersonal abilities is crucial and may even result in repeat business.
2. You Need to be Good with Numbers
I think that it goes without saying: to be a good tax preparer, you need to be Good with Numbers. One of the prerequisites for being a tax preparer is being proficient in arithmetic, including addition, subtraction, multiplication, division, percentages, and fractions. Beyond the basics, the job frequently requires entering numbers into complex formulas, so you must be familiar with algebra and be able to solve equations precisely.
3. Organizational Skills
To make tax returns, tax preparers need to collect and arrange a lot of specific information. A tax preparer should exhibit meticulousness and excellent planning abilities. They must have the skills necessary to input data into tax preparation software, compile tax return schedules, and promptly share their returns with the clients. You can’t be a good tax preparer without possessing organizational skills.
4. Proactive Attitude
Tax preparers ought to be accessible all year round, not only when it’s time to file your taxes. Before it’s too late, they should provide timely advice regarding potential tax planning possibilities, areas that the IRS is monitoring, and changes to tax law. A proactive tax approach can assist you in avoiding unpleasant surprises at year’s end and may even result in tax savings.
5. Critical Thinking Skills Will Help
Critical thinking skills are basic life skills, and they are needed in almost every business. To decide if a client is eligible for deductions and credits, as well as how to classify various types of income and losses, you must be able to analyze a scenario and utilize deductive reasoning.
To determine the benefits and drawbacks of pursuing a particular course of action, such as choosing one tax write-off over another, you must also be able to use sound judgment.
As a matter of fact, you don’t need a degree to start a virtual tax business. However, if you have and work on the above-discussed skills, your chances of success will skyrocket in the industry.