Whether you’re just entering the workforce or looking for a career change, tax preparation has a lot to offer. Why?
- Skilled tax professionals are highly sought-after and respected.
- You can learn the skills you need in a matter of months rather than years.
- Tax preparers can establish lucrative businesses and earn high incomes while enjoying the flexibility of the tax off-season.
- Thanks to advancements in tax software and other tech, tax preparation offers the chance to work remotely, yet it’s also a highly relational business that lets you build meaningful relationships with your clients.
So if you’re searching for a rewarding career that you can start quickly, here’s why tax preparation might be the path for you:
High Income Potential
You already know that tax preparers help taxpayers file their returns correctly – but tax preparation can be so much more than this. Skilled preparers help clients minimize their tax liability and maximize their refunds, and that skill is highly valued. They also help small business owners stay compliant with the IRS year-round, removing a hefty amount of work from business owners’ busy schedules. As a result, tax preparers can earn high rates for their services and have a high income potential.
As you gain experience and build a solid client base, your earning potential can skyrocket, especially if you serve higher-paying clients like small businesses or those with complicated tax returns. Additionally, because of the seasonal nature of tax preparation, many tax preparers find themselves with extra time in the off-season that they use to offer services like bookkeeping, payroll, and financial planning to their tax clients.
Schedule Flexibility
Flexible scheduling and remote work options are becoming more and more important in the modern workplace. Tax preparation offers both. While tax season is typically busy, the rest of the year, you’ll have the flexibility to pursue other interests or income streams.
Even during tax season, you aren’t tied to a 9-5 in the office. Modern tax preparation software enables you to work from anywhere and serve clients remotely, so you can tackle the busy season from the comfort of home.
Recession-Resistant Career
Even in changing economic circumstances, the demand for tax professionals remains consistent. Why? Taxes are a constant in life, and everyone, from individuals to corporations, needs to fulfill their tax obligations. By choosing a career in tax preparation, you’re securing your spot in an industry with enduring demand.
Low Barrier to Entry
Think you need to be a CPA to prepare taxes? Think again.
Tax preparation actually has a relatively low barrier to entry, so you can start your business quickly. Many tax preparers start with basic training necessary for uncomplicated returns and gain hands-on experience and additional training as they go. IRS-approved courses and certifications – such as the AFSP Record of Completion or Enrolled Agent status – are available to enhance your knowledge and skills, allowing you to gradually build expertise while actively working in the field.
This low barrier to entry makes tax preparation an attractive option for career changers and those looking to break into a profitable industry without years of formal education.
Choose the Tools that Work for You
The world of tax preparation has evolved, and so have the tools at your disposal. A high-quality professional tax preparation software can streamline your filing process, enhance accuracy, and provide better service to your clients. Cloud-based software enables you to work from anywhere, and advanced programs may even include mobile apps for your clients, allowing them to securely and seamlessly upload their tax documents without a face-to-face meeting.
These advancements in technology not only improve efficiency but also open the door for virtual tax practices, saving you the business costs of brick-and-mortar locations.
Conclusion
Career changes can be tough – especially when it takes years to break into your chosen career and years more to earn a decent salary. Fortunately, a career switch to tax preparation isn’t hindered by those barriers. With some basic training through an IRS-approved education provider and the right tax preparation software, you can begin competently preparing returns in a matter of months. As you grow your skills and your business, your income potential can increase rapidly. And thanks to advancements in technology and the seasonal nature of tax preparation, you can enjoy the flexibility of remote work and the off-season to pursue other personal and business goals.
Is tax preparation your next career move? If you’ve been craving challenging yet rewarding work that will allow you to own a profitable business quickly, it just might be. To better understand the steps involved in becoming a professional tax preparer, we recommend this Ultimate Guide to Starting a Tax Preparation Business.