How to Start a Tax Preparation Business in 13 Steps

Taking a little time to gather your tax-related documents will pay off, in time saved and frustration eliminated. Your credit card statements can be a big help in sorting out these expenses, so keep those statements handy. Particularly valuable will be a year-end summary statement that breaks down expenditures by category, which many card business tax preparation issues provide nowadays. The IRS may audit your tax return for several different reasons. After Forbes Advisor analyzes and scores each online tax product, the software is given a star rating. For a full list of which goods and services excise taxes may apply, refer to the excise tax overview page on the IRS website.

Comprehensive Services for All Business Types

While politicians from both parties promise simplification of the tax code, the reality is that the process only grows more complex. That means you can always feel confident of a customer base eager for your help. Phone.com is our top choice for small business phone numbers https://www.bookstime.com/articles/what-is-an-accountant-and-what-do-they-do because of all the features it offers for small businesses and it’s fair pricing. There are several types of insurance policies created for different types of businesses with different risks.

Tips for Enhancing Client Interaction Online

• Temporary employees will also cost you either an hourly rate or a percentage of the business they handle.
• Once we have a plan in place, we will work with you to resolve your back taxes as quickly and efficiently as possible.
• Tax preparation can be a good side hustle, particularly since it’s somewhat seasonal.
• Kelsey has appeared on the “Today” show, NBC News and ABC’s “World News Tonight” and has been quoted by the Los Angeles Times, CNBC, American Banker, NPR and Vice, among other publications.
• There are additional costs from the IRS and for liability insurance.

A CPA is a licensed accountant who helps business owners keep track of their finances, including taxes and government filings. Hiring a CPA to do your business taxes will generally cost more than using tax software, but typically the accountant can help you with tax planning and strategies all year long. If you are taxed as an S-Corp or as a partnership, you need to file a Form 1120S or Form 1065. These forms are due by the 15th day of the third month following the close of the tax year, which for most taxpayers payroll is March 15.

Get In Touch About Your Business Tax Preparation

In addition to these activities, maintaining an online presence is critical for your tax preparation business. Engage with your network through social media and relevant industry blogs to showcase your expertise in tax preparation business services. Lastly, a well-crafted tax preparation business plan can provide guidance through the initial stages and help secure funding if needed. It is an invaluable tool for both new and seasoned entrepreneurs in the tax industry. The tax preparation industry is evolving rapidly, with nearly 85% of individuals seeking assistance from professional tax preparers each year.

• In 2019, 56% or 71,725,000 of e-filed tax returns were accomplished by tax pros.
• That includes payroll documents, income statements, depreciation schedules, bank and credit card statements, and receipts for large purchases.
• You’ll probably generate new customers or find companies with which you could establish a partnership.
• If your business needs a CPA to offer expert tax advice, quarterly or annual tax return preparation, tax consulting then give us a call today.
• If you wish to offer greater affordability, consider doing it as part of an overall service package that balances price with quality for select clients.

All businesses have to pay certain taxes to the IRS and state tax authorities. As a small business owner, it’s your responsibility to ensure that you meet your federal and state tax obligations. Our self-employed and business tax experts will ensure you get every tax break with 100% accuracy, guaranteed. Before filling out any tax forms, you should have all of your records in front of you that report your business earnings and expenses. Your Bookkeeping team completes your monthly books and prepares a year-end financial package to hand off to your Tax Advisor and Coordinator during tax season.