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If you plan to start a tax business or have a few tax seasons under your belt, there are several steps you need to take to succeed. Even though many of these steps seem obvious, making a mistake on even one can mean wasted time and money. Throughout this article, readers will learn the main steps needed to become a successful tax preparer

You know the drill, get your pen and paper ready. I’m about to break it down!

…While you’re here, register for my exclusive FREE online training, ‘Teach Me The Tax Game’ to learn how to increase your income with a new career in the tax industry, and make $100K in just 90 days!


1: Complete the Necessary Education/Training


Almost all Americans are required to file a 1040 tax return each year, so learning how to prepare one is a great place to begin. In addition, you might consider taking online classes, in-person courses, or audiobooks on tax compliance.

I recommend registering for my free online training, “Teach Me The Tax Game“, where you can learn how to make $100,000 in 90 days!


2: Create a Tax Business Plan


At the end of the day, a tax preparation business is just that: a business. Setting up a business involves time and money, so you should plan accordingly. Identify your short-term, mid-term, and long-term goals for your business, the type of services you will offer, and how much you will charge for them. 

Interested in learning more about this topic? Read this article next: How To Create A Tax Preparation Business Plan.


3: Get The Proper Licensing


In order to operate a tax preparation business, a business must comply with state and federal licensing requirements, which, of course, vary from state to state.

To avoid suspensions and fines, make sure you’re up to date on continuing education requirements and have a PTIN (Preparer Tax Identification Number) and EFIN (Electronic Filing Identification Number).


4: Use The Right Tax Software


One of the biggest investments you’ll make as a tax business is the software you need to file returns. It’s important that you choose a tax preparation software program that allows you to easily import client data, automatically populate and link tax forms, catch errors, and e-file and share tax returns with ease.


5: Utilize Tools That Optimize Efficiency


Once you’ve mastered the basics of technology, you can add tools to boost your bottom line, efficiency, and client satisfaction. Many tax preparation software programs, like TurboTax®, provide electronic signatures, secure client portals, and other features for storing and signing documents electronically.


6: Go Above and Beyond For Your Clients


Even if you provide excellent service, most people don’t enjoy preparing their taxes. Your role is to help them answer questions, save money, and plan ahead for the future.

One way to do this? Establish a self-service document portal, use a mobile app for e-signing, and stay in touch with clients even when tax season is over.


7: Set Your Tax Business Apart


Refund transfers make it easy for clients to pay tax preparation fees from their refunds instead of out of pocket. E-filing can help speed up the tax refund disbursement process when compared to receiving a tax refund check from the IRS.


Start Your Own Tax Business


I won’t lie, there is a lot that entails starting and maintaining a successful tax business. However, with the right help, anyone can do it! All you need are the right tools, resources, and guidance.

What are you waiting for? Let’s make some money.


…And don’t forget! Register for my FREE online training, ‘Teach Me The Tax Game’, and learn how to make $100K in just 90 days as a tax preparer!



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