Are you interested in learning more about professional tax preparation and pursuing a career in that field? If that’s a yes, then this article will be perfect for you. As you know, being a tax preparer is not an easy role. You have to go through needles just to be eligible to perform the task.
If you’re planning to become a tax preparer, here’s everything you need to know about the field:
Is There a Mandatory Licensing for Tax Preparers?
If you want to become a tax preparer, fortunately for you, you don’t need to obtain mandatory licensing because the IRS doesn’t require it. However, there are things you need to take care of before you can legally prepare tax returns. The first thing is the Preparer Tax Identification Number (PTIN). You need to have that because all tax preparers must obtain it. If you file tax returns electronically, you also need an Electronic Identification Number (EFIN) from the IRS.
What Education Must You Obtain to Become a Tax Preparer?
The good thing about being a tax preparer is that you don’t need any formal education in accounting or tax law. However, some require that you should be a high school or college graduate. Even if it’s not necessary to have any accounting or tax law background, it doesn’t mean that you should settle for whatever you have. There are several credentials and continuing opportunities you can apply to improve your credibility as a tax preparer.
Are You Required to Work All Year If You Are a Tax Preparer?
You are not required to work all year if you are a tax preparer, but some tax preparers do. However, you should know that being a tax preparer doesn’t mean that you are only focused on tax preparation tasks; you should be able to perform other tasks related to accounting, such as:
- Bookkeeping
- Managing employees
- Preparing taxes for late filers
- Preparing quarterly taxes for businesses and freelancers
Can You Start Your Tax Business from Home?
While working in an office setup is the norm, you can still do business at home. However, you need professional tax preparation software to manage and simplify remote communication with your clients. Fortunately, Keystone Tax Solutions can provide you with tax pro software that can help you.
But, before you start your business from home, you should check your city’s regulations on running a business. Some states may require you to have a registered business address before you can officially accept clients. If that’s the case, you can always opt for co-working spaces as an alternative.
How to Know If a Particular Software Is the Right One for You?
You’ll know that a software is the right one for you if it can meet your business needs. It should be able to help you manage your business easier and well. So, you should find software customized to your business design so that you can do your tax preparation more efficiently.
Conclusion
Being a tax preparer can be daunting. It’s not just about filing and consolidating your client’s tax requirements; you also need to take care of other things that can be overwhelming on your part. Fortunately, you can now take advantage of software for tax preparers. The software can now make your job easier, and you can now manage your business smoother.
Keystone Tax Solutions offers the best professional tax software. We are a professional tax software industry leader with over 15 years of experience offering 100 percent web-based tax software while helping thousands of tax professionals start their own tax businesses. We also help thousands of companies to gain more access to affordable technology-driven professional tax software. Choose your software package from us today!
