You’ve spent many long years studying to be a tax professional, and you’ve finally decided: now is the time to launch your own tax preparation business. Fortunately, there’s never been a better time to do so than the present: with so much technology available at your disposal, like professional tax preparation software, it’ll be even easier for you to get started.
Apart from making a name for yourself in the industry, starting your own tax business comes with numerous benefits. You can kiss goodbye to a 9-5 schedule, produce more output in a shorter amount of time, and be your own boss. Here are five benefits of launching a tax business:
Even if you’re just starting as a tax professional, you can earn around $21 an hour. This sum increases depending on how long you’ve worked, the types of tax returns you can prepare, and where you are located. Naturally, the more experience you have, the more this hourly rate goes up!
However, if you’re starting a business by yourself, you have even higher earning potential, particularly if you start at home. You won’t have to worry about overhead costs, so whatever you’ll be receiving is mostly profit. If you charge $200 per client and serve 170 clients between January and April, you’ll be making $34,000 from that alone. If you take on even more clients, you’ll be earning most people’s yearly income in just three months!
Another benefit of opening your own tax business is that you can kick things into high gear for three months and relax for the rest of the year. You can also choose to prepare complicated tax returns, effectively turning your business into a year-round one, earning more income. Adding more services like bookkeeping and payroll, financial services, and even taxpayer representation will keep the money coming even outside of tax season. Of course, if you love having large swathes of free time, you can choose to focus on those three months alone and still earn big.
One of the best parts about running your own tax business is the flexibility that comes with it. If you choose to work actively during tax season, that means you’re free to take months-long vacations during the holiday and summer seasons. This arrangement works even better if you have children at home, if you’re an avid traveler, or you generally like relaxing. You can also spend the rest of the nine months focusing on another business, keeping you busy and diversifying your income streams.
As the founder of your business, you ultimately decide how much you work. You’re at the helm of choosing to take on more clients or invest in the ones you currently have. You can weigh the pros and cons of expanding your business or keeping it small with you as the sole tax preparer. While these arrangements have their advantages and disadvantages, what ultimately matters is that everything is up to you and what you think is best.
Finally, a great reason to launch your own tax business is that you can start at home. That means getting started right away without having to spend too much. By equipping yourself with your tax knowledge and the best professional tax software, you’ll have what you need to get started on taking on clients and preparing their taxes for them!
Starting a tax business by yourself can be intimidating to many, especially if you have just a few years of experience in the field. However, there are plenty of benefits that come with it, making the leap of faith worth it.
Keystone Tax Solutions is the leading software for tax preparers that is entirely web-based. We have helped thousands of tax professionals start their own business and thousands more gain access to affordable technology that has improved their efficiency and performance. Try our free demo today!
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