As a tax preparer, a lot of your income for the year is earned in just a few months. Naturally, you’ll want to maximize your revenue during that time. And, depending on your financial goals and needs, you may want to supplement with other services that you can do year-round. Here are some ways that you can continue to serve your customers and use your expertise to earn more money in and outside of tax season.
1. Offer bank products
Bank products are sometimes called “settlement solutions” or “refund transfers.” Bank products allow you to deduct your tax prep fee from the client’s tax refund, which means you can offer your services at ‘no out-of-pocket cost’ to your clients. You can even help them receive a portion of their refund right away, instead of waiting for the IRS to send the money.
Bank products provide a convenient solution for both you and your clients, and they may be the reason a new client chooses you over the competition. Adding bank products to your list of offerings is very simple. To get started, all you need to do is apply. Learn more about bank products
2. Become a service bureau
This is one opportunity that is especially interesting once you’ve established yourself in the tax prep business. As a service bureau, you can diversify your revenue by reselling tax software that you trust using your own label/brand. You help other tax preparers grow their business, and as a result, your business grows, too.
By adding your own label to a software and then making it available for purchase by other tax pros, you increase visibility and credibility for your brand. Best of all, your income is more stable year-round as you focus on sales and expanding into new markets. Learn how to become a service bureau
3. Become an enrolled agent
This is one career move you can make that will set your tax business apart from the others. The enrolled agent status is the highest credential awarded by the IRS, but not everyone tries or succeeds in earning the title. To become an EA, you must meet a set of requirements that includes taking exams, passing a suitability check, and continuing your tax education.
When you’re an EA, you can represent any taxpayer in any situation in any IRS location. If you don’t have the EA credential, you’re limited to representing only your clients. Proper representation is a valuable service that is in demand any time of year – not just during tax season.
4. Offer bookkeeping
If you are already preparing taxes for a business, it may be natural to offer bookkeeping as an additional service. Bookkeeping includes keeping track of an entity’s financial statements, transactions, expenditures, and income. As a tax preparer, chances are you already possess many of the skills needed to be a successful bookkeeper.
You need a high school degree to offer bookkeeping as a service. You can be certified or obtain a license if you choose, but it is not required. Still, having a license may help to attract more business, and the coursework could be beneficial in the long run.
Bookkeeping is not the same as accounting. To become an accountant, you would most likely need a bachelor’s degree or higher in the field. The most common accounting credential is the Certified Professional Accountant (CPA).
5. Manage Payroll
Running payroll for a client business is another service that doesn’t require a specialized degree. There are a number of payroll software solutions that are designed to make payroll simple and accessible.
For many small business owners, hiring someone to manage payroll tasks is a worthwhile expense because they have more time to focus on earning and increasing revenue. For you, it can mean ensuring that your client is in compliance with the laws and their employer tax info is being properly tracked.
This article was last edited on August 10, 2021.