Benefits of Starting Your Own Tax Business
A career in tax preparation can be very rewarding and lucrative. Starting a tax business can be even more so. Check out some of the benefits of starting your own tax business.
You Can Earn Up To $100/hour or More as an Experienced Tax Pro
According to Salary.com, tax preparers with 0-2 years of experience can expect to earn an average wage of $21 an hour. Depending on where you’re located, how long you’ve been a preparer, and what types of tax returns you’re able to prepare, the average wage could be significantly more.
Now if you go into business for yourself, your earnings potential is so much greater! According to the National Society of Accountants, the average cost of a tax return with no itemized deductions is $188…and the average cost of a tax return with itemized deductions is $294! If you have a home-based tax business, you won’t have much in the way of overhead, so what you bring in is mostly profit. If your average charge is $200, and you serve 150 clients between January and April, which is roughly 12 clients per week, you could bring in $30,000 in just three months’ time. Double that number to 300 clients in 13 weeks or roughly 25 clients per week, which is 5 clients per day, and you could bring in $50,000 in just three months’ time!
You Can Work 3 Months of the Year and Make a Great Income
Where else can you work 3 months a year and earn an income like that? If you prepare more complicated tax returns – including small business returns – you could easily turn it into a year-round business. And adding on additional services, such as bookkeeping and payroll services, taxpayer representation, and financial services, can help you maintain a steady revenue stream year-round, and also help with diversification.
You Can Have Your Summers and Holidays Free
Talk about flexibility! If you choose to only work during tax season, you will essentially have your summers and holidays free! This is amazing if you have children at home, love to travel, or if you just want to relax. You could even choose to have an entirely different business the other 9 months of the year – such as lawn care, real estate, or retail! All three businesses are complementary to the tax season, but there are many others.
You Control Your Own Destiny
When you work for yourself, you’re in control of your destiny. You decide how little or how much you work. You decide whether to take on more clients or stay steady with the ones you have. You get to decide if your business will stay small with just you or if you want to expand and take on employees. Each owner has their own motivation and thoughts about what they really want out of their business. Some are looking for job security, others are looking for no cap on their earnings potential, while others may be looking for a better work-life balance. The choice is yours to make!
You Can Start at Home with Minimal Expenses
The best news of all is that you can get started quickly with minimal expenses. You don’t need a college degree, or high-level math or accounting knowledge. If you have a high school diploma or the equivalent, basic math and computer skills, and enjoy working with people, you have everything you need. Getting started is so much easier and less expensive than you might imagine.