Are you thinking of starting your own business? Perhaps you’ve been dreaming of owning your own tax preparation business. It’s a lucrative market, and there are many ways to make it work for you.
But what if you don’t want to leave the comfort of your own home? Or maybe you’re worried about the cost or time commitment involved in starting a brick-and-mortar business. No problem!
A virtual tax preparation business may just be the perfect solution for you. In this post, we’ll walk you through everything you need to know to give you an idea of what you will need to do to get going. So read on, and let’s make your entrepreneurial dreams a reality!
Outline Of Steps To Take To Get Your Tax Business Started
Let’s start with a quick overview of what you will need to do to get going as soon as possible. With these steps, you’ll be well on your way to starting a successful virtual tax preparation business in no time at all.
1. Choose your niche. The first step to starting any business is finding your niche, and this is especially true for a virtual tax preparation business. Think about what kinds of taxes you’re most passionate about preparing or you may have previous experience in, and focus your business in that area. This will help you attract the right clients and create a name for yourself as an expert in your field.
2. Choose your business structure. At some point, you are going to want to choose the legal structure for your business. This will determine things like how you file your taxes and how much liability protection you have. The most common business structures for tax preparation businesses are sole proprietorships, partnerships, limited liability companies (LLCs), and S corporations.
3. Get certified. Once you’ve decided on your niche, the next step is to get certified to prepare taxes in that area. This will ensure that you have the knowledge and skills necessary to provide quality services to your clients and that any potential clients will take your business seriously.
4. Get a tax identification number. You’re also going to need to get a tax identification number (TIN) from the IRS. This is also known as an Employer Identification Number (EIN). You can apply for your EIN online, by fax, or by mail.
5. Obtain the necessary licenses and permits. Depending on your state, you may need to obtain a business license and/or a professional license to practice as a tax preparer. You can check with your state’s licensing board to find out what’s required.
6. Choose your accounting software. As a tax preparer, you’ll need to keep accurate records of your client’s finances. The best way to do this is to use accounting software like QuickBooks, Xero, or TurboTax. This will make it easy to track income and expenses, prepare tax returns, and generate financial reports.
7. Set up your business. Now it’s time to set up your virtual tax preparation business. This will involve creating a website, choosing a business name, and getting started with marketing and advertising.
8. Start preparing taxes. The most important part of your business is actually preparing taxes for your clients. Make sure you’re providing quality services and meeting their needs. Make sure that you are staying up to date on any changes because the tax code changes all of the time.
9. Grow your business. As your business grows, you’ll need to continue marketing and advertising to attract new clients. You can also start offering additional services, such as bookkeeping or financial planning, to further grow your business and begin to really earn a serious income.
Benefits Of A Virtual Tax Preparation Business
There are many benefits to starting a virtual tax preparation business. For one, you can work from anywhere in the world. All you need is a computer and an internet connection. Plus, you can set your own hours and work as much or as little as you want.
Another great benefit is that you can serve clients from all over the country (or even internationally although this can be pretty complicated for obvious reasons but it is an option). This gives you a much larger potential client base than if you were to open a brick-and-mortar tax preparation business.
I haven’t even touched on the pay yet. A tax business is the most profitable business that you could start (ranks up there right with bookkeeping). In many cases, tax clients will also lead to bookkeeping clients as well! When this happens, you are now earning for your tax and bookkeeping services!
If you want to simply focus on preparing taxes, you could earn a year’s worth of income in 4 months’ time! Of course, you would have to build up your clientele first but is very possible to do.
Meet With Clients Virtually
There are a few things you’ll need to do in order to meet with clients virtually and discuss their taxes. First, you’ll need to make sure that you have a secure internet connection.
Next, you’ll need to choose a video conferencing platform that you’re both comfortable with using. Using something like Zoom or Google Hangouts would work out just fine.
Finally, you’ll need to gather all of the necessary tax documents and paperwork. Once you have all of that taken care of, you’re ready to meet!
When you’re meeting with clients virtually, remember to be professional and courteous. This is still a business meeting, even if it’s not in person.
Second, make sure that you’re both on the same page when it comes to your discussion. It can be helpful to have an agenda or list of topics that you want to cover.
Finally, be sure to answer any questions that your client may have. Even if you don’t have the answer let them know that you will find it for them. This goes a long way in showing your clients that you will go out of your way for them and achieving that most trusted advisor role.
Filing Taxes On Behalf Of Clients And Collecting Payments
There are many benefits to using online tools to file taxes and collect payments. For instance, it can save you time and energy, as well as money. In addition, it can also help you maintain a good relationship with your clients, as they will appreciate the convenience and efficiency of online filing and payment.
Here are some tips on how to file taxes and collect payments virtually:
- Use online tools such as e-filing software. This will allow you to prepare and file tax returns quickly and easily.
- Use online payment processors such as PayPal or Google Checkout. This will enable you to collect payments from clients easily and securely.
- Keep track of all your filings and payments using online accounting software such as QuickBooks or Xero. This will help you manage your finances and keep track of your clientele easily.
- Maintain good communication with your clients. This is important in order to build trust and maintain a good relationship.
- Offer discounts or incentives for early payment. This will encourage your clients to pay their taxes on time and help you boost your cash flow.
How To Put Everything Altogether
Starting a virtual tax preparation business might be right for you but how do you put this all together? I understand that you simply are not going to go out and have a successful business just from reading this post (it would be nice though wouldn’t it)?
What you need to do is learn more about the absolute best tax course available online. It’s self-paced and you do not need any previous experience to get started. You can have your business up and running in as little as 3 months!
You will learn everything you will ever need not just about how to prepare taxes but, perhaps more importantly, how to market your new business as a tax professional.
So what are you waiting for? Check out my complete breakdown of the best tax course online and get started today!