When it comes to income security, the self-employed people have the most secure income source. every job holder wants to start his own business and make his own fortune. The greatest thing about having your own startup is to have more independence and financial freedom. Entrepreneurship is the thing that everyone is running to. Not every one of them is becoming successfull though! But the once with proper dedication and education are doing just well! So why not you!
Why start a tax business?
Well, every single person around the country wants their tax amount to be decreased but not anybody can decipher all the tax codes and make a tax plan to with that will save their money. Not everyone can prepare their tax papers accordingly at the end of the year. You can be the one to give them the service and launce a business out of it! Starting a Tax preparation service doesn’t require a lot of prior knowledge about tax or money. All you need is proper training and a few bucks to model the business.
Who can become a tax professional?
Congress makes changes to the Internal Revenue Code (IRC) every year and Millions of Americans continue to pay tax professionals to study their tax returns and prepare the tax file every year. Now because of the continuous changes in the Internal Revenue Code, Taxpayers become even more confused and the dependence on the tax professionals goes higher. So, Becoming a tax professional can be a lucrative business for sure! the demand will go even higher with time.
With this dependence going higher, tax professionals also become more and more demanding. So, if you are not planning on starting a business with it, maybe you should study the tax codes for yourself! You are also a taxpayer at the end of the day! Having more knowledge about the tax codes will help you prepare your own tax returns effectively and maybe save a lot of money! There is some specific type of people who also can do a very good business in the sector:
People who stay at home:
There are people who stay at home for several reasons. It can be a stay-at-home mother or father, a disabled person, Or maybe a person who took early retirement and needs to work for a living.
People who move often:
There are people who need to keep moving from a part of the country to another. Considering military personnel who needs to keep moving from here to there all year, needs a business that he or she can take with and settle anywhere. All it takes a computer with an internet connection and a base of taxpayer clients.
People from the financial background:
Maybe you work for a bank and you want to start your own business with what you have already. The best thing you have is the knowledge about money, tax and how they work. So, as a side profession, becoming a tax professional can be a great choice.
Myths about becoming a successful tax professional
There are some myths spoken in general about being a tax professional that you need to be a CPA or a number person. For this reason, so many people are afraid of coming and trying the profession in person. The truth is, you don’t necessarily have to have a CPA or a number person to become a tax professional! If you have the patience and passion to deal with figures and little things about finance, you can become a tax pro just fine.
What do you need actually!
A higher level of knowledge about math, accounts, money, and law is not important. Not even a college degree is important to become a tax professional. What you need is a preparation course from a reputed institute or a tax professional to get the whole idea of tax codes and how they work. Then you will have to complete the 6-hour long AFTR (Annual Federal Tax Refresher) course besides an AFSP course. There, you will have a competency test about your tax knowledge with 100 questions set. It is a program run by the IRS (Internal Revenue Service). You will get a complete record of the test from them. You need to continue the education and it’s important, it will keep you updated with the current tax code.
Than some tax management software and some paperwork will be all left.
Here comes the big question that drives you to this article in the first place. That is “How much you can make becoming a tax professional?”. Well, the amount of money you can make depends on how experienced you are and how big your client base is. An experienced tax professional can make up to $100 per hour if he is working on himself and the money goes only one-handed. With that been said, you can do math! $100 per hour and 8 hours a day, that makes more than $4500 per week. Now, the usual tax season in the US is from Mid-January to Mid-April. Within this period of time, you can make about $50000 for sure. And for the rest of the year, you can do other money-related services.