While there are many reasons to become a tax preparer, why would you want to start your own tax preparation business? You could continue working for a tax preparation company or tax service such as H&R Block or a tax firm. However, several of the more immediate benefits to starting a professional tax practice include the ability to achieve the following three goals:
- Work-life balance. You set your own schedule and work as much as you want, when you want.
- Financial security. How much do tax preparers make? While it may take some several years to build financial independence, successful tax seasons indicate you will receive quality referrals and more business.
- Job flexibility. You can choose your own niches, services and industries, and decide what kind of work you’re most interested in doing.
Small business owners are entrepreneurs, innovators and self-starters who would rather work on improving their companies, and finding clients and customers, than spending precious time on back-office details, including their taxes. They need strong, proactive tax preparers who offer tax services with business and individual tax returns, but they also need more than just a processor of information. They need empathetic advisors and tax planners who understand the needs of small business.
The difference between owning your own tax practice and working for someone else is simple: it's your baby, and while you may not exactly have the same entrepreneurial spirit other small business owners thrive on, you will shine in other ways. Starting your own professional tax practice is definitely a possibility. After all, if others have done it and succeeded, why can't you?
Of course, there's more than simply hanging out your own shingle, especially when it involves a business where you work with the public, retain topical technical knowledge and market your services in a crowded marketplace. Let's go on a journey with three tax planners and preparers who each took a giant leap to start their own practices. Along the way, you're sure to find parallels with your own background and experience, and discover the passion all three have with being your own boss.
This article will cover the following topics:
Three Practitioners with Three Very Different Stories — An introduction to three tax preparers and their respective backgrounds
Work-Life Balance — How starting your own practice affects home life
Financial Security — Is this line of work recession-proof?
Job Flexibility — There's more to this line of work than just benefits to home life
The Right Time to Start a Practice — The best time can vary based on your circumstances
Additional Resources — Get more information on HOW to start your own practice