Being without a Tax Bank Product account may seem unimaginable to some people, but it is the reality of 7.1 million Americans, according to the FDIC. This has several implications for you, as a tax preparer, and your clients—the foremost being that some clients might have ways of getting their tax refund. This process is also difficult because it does not guarantee secure payment for your services!
Finding ways for your clients to access their income tax refunds in a timely and reliable manner is imperative, and it actually can be accomplished with tax-related bank products, such as tax-return software.
All About Tax Bank Products
Even if any of your clients don’t have accounts, it still shouldn’t hinder them from accessing tax preparation and refund services. Tax bank products are useful in this case, as they are financial products developed specifically for the receiving of tax preparation and refund services.
Tax bank products can offer refunds in several ways, such as through electronic fund deposits and prepaid debit cards. Clients are then given access to your services, after which the fees are deducted from their refund so that they won’t need to worry about paying you upfront!
Offering a Tax Bank Product to Your Clients
Using the right software for tax preparation to provide tax bank products to your clients begins with applying to be an authorized e-file provider. From here, you can choose the bank products that are appropriate for your business and apply with one or more banks. You then wait for approval before you can begin processing different transactions.
Some Advantages to Offering a Tax Bank Product
Tax bank products are not only easier for you, but they are also beneficial for the average taxpayer, who can now avail of your services without having to provide out-of-pocket payment. This makes your business more accessible, as clients can easily have their taxes prepared without owing anything upfront.
E-filing and fund transfers also ensure a fast tax refund receipt while the options for receiving the refund are flexible. Some choices are direct deposit, through a check, or debit card. Clients will also have access to their loans based on the amount they receive for the refund.
Your client may also opt to receive part of their refund as an advance, though this is dependent on the amount of the refund. Refund advances are non-recourse loans that can be used from the taxpayer’s refund. When the bank receives the refund, it repays the loan and its fees, your fees, and returns the rest to your client. You may offer refund advances depending on the bank that you work with!
For benefits on the tax preparer’s end, tax bank products guarantee that payment is automatically received for your services rather than risking running after people to cough up your fees. You’ll also attract more clients who may prefer to pay for services this way, thus growing your customer base. Your competition may not be using the same software, which gives you a competitive advantage, thus increasing your value to potential customers.
Take full advantage of bank products and set yourself apart from competitors by advertising how you can help potential clients. Highlight your ability to help them get refunds more quickly without the dreaded upfront costs.
Conclusion
People who struggle with accessing banks to open or maintain an account for themselves can still get their taxes done with your services. By offering an easy way to transact with your business and ensuring you receive your service fees on time, you’re ultimately making it possible for all parties to benefit. Tax bank products have a whole host of benefits, all of which can ensure people get their tax refunds and can grow your bottom line and business.
Are you looking for the best professional tax software that you can use to boost your business’ processes? Here at Keystone Tax Solutions, we offer our customers a unique solution to start and grow their tax businesses in a fun, affordable, and easy manner. Connect with us today and let us help you uplift your tax preparation business!
