Filing for Becoming Tax Preparer is one activity that most people prefer not to do because it requires a lot of time and effort. Fortunately, there are professionals known as tax preparers who can lend a hand in this matter.
If you’re the type of person who enjoys crunching numbers, you may have a prosperous career as a tax preparer.
What Are Professional Tax Preparers?
The Internal Revenue Service (IRS) defines a tax preparer as individuals or firms who prepare and file a tax return or claim for refund or credit. They do this by going over tax returns, advising taxpayers on tax issues, and even assisting in getting tax returns ready.
The profession typically requires additional education and licensing to become a tax preparer. However, some states allow individuals with a high school degree and knowledge of tax law to work as preparers.
How Much Do Tax Preparers Make?
According to the latest data from the Bureau of Labor Statistics (BLS), the average salary of a tax preparer is around $46,860. Similar to other positions, the pay can increase or decrease depending on the individual’s experience.
For example, tax preparers with only a year of experience typically make $11.04 per hour. It increases to at least $12.18 per hour if one has two to four years of experience. It’s also worth noting that salary varies depending on state and employer.
What Does It Take to Become a Tax Preparer?
If you’re interested in becoming a tax preparer, you must first have the proper credentials recognized by the IRS. You either become a Certified Public Accountant (CPA) or an enrolled agent.
A CPA is a licensed accountant with a four-year bachelor’s degree and at least 150 hours of related accounting coursework at a college or university. On the other hand, an enrolled agent is a candidate with at least a four-year bachelor’s degree and a minimum of three years of experience performing specific prescribed tasks, including tax return preparation.
What Equipment Do Tax Preparers Need?
If you have the right background to start a career as a tax preparer, you then need to have the necessary equipment to perform efficiently. Tax preparers require access to the internet and computer software to complete their job.
In addition, you should also consider acquiring a professional tax preparation software. These applications offer features to help you reduce errors and enhance the efficiency of your work. Most software for tax preparers also allows you to record data and process it faster, helping you complete your work in a more timely manner.
Where Do Tax Preparers’ Work Include?
The best thing about being a tax preparer is that you can work in a variety of industries, including but not limited to customer service, accounting and finance, healthcare and social assistance, and education. However, it’s most common for tax preparers to work for accountants or CPAs.
If you’re uninterested in working for others, you can also establish a tax preparation business. Doing so allows you to be your own boss and work alone. Later on, you can collaborate with other tax preparers to accommodate more clients.
Why Work as a Tax Preparer?
As a tax preparer, you get opportunities to work remotely with most of the equipment you need for the job you likely already own. Additionally, you can also choose to establish your own tax preparation business. Therefore, you have more freedom in determining when to work and the type of responsibilities you take on from clients.
Even if you work for someone else, you can still choose the solutions you want to offer. For instance, some tax preparers manage payroll and bookkeeping and provide bank products like settlement solutions. Aside from the services, you can also choose to specialize in tax preparation for people in a particular industry or demographic.
Final Thoughts
Tax preparers are invaluable to the tax filing process. They assist taxpayers in filing their tax returns and advising them on tax issues. The job pays quite well, and you can also enjoy flexible scheduling and more freedom in choosing the type of work you perform.
If you’re looking to get started as a tax preparer and want to use the best professional tax software, consider choosing Keystone Tax Solutions. We offer affordable tax preparation software designed to help you grow your tax business. Try our free demo today!
