| Tax preparation from home, though it provides income | | | | The fee structure you choose should be equivalent to |
| seasonally, is a great way to earn extra money to | | | | what the market offers. Overpricing services is one of |
| cover your bills or make a descent living if it is done full | | | | the most prevalent mistakes that home based tax |
| time. On average, home based tax preparers earns | | | | preparers make. They offer rates that people are just |
| about $1,700.00 per month preparing returns for 19 to | | | | not willing to pay, especially when you consider that |
| 20 persons. Some can earn up to $5,600.00 per month | | | | tax software is readily available and pretty easy to |
| during the tax period. What makes the earnings even | | | | use if a client decides to do their own taxes. Your best |
| more enticing is that being a tax preparer from home | | | | bet is to research the market to see what the |
| requires little initial expenditure and it is easy to start | | | | average charge out rate is and ensure that your rates |
| and operate. Even though a home based tax | | | | are at the market rate or below it. |
| preparation business is relatively easy to operate, | | | | In general, starting home based tax preparers charge |
| there are a number of things that should be considered | | | | $90 per return. The more experienced tax preparers |
| if you would like to be a home based tax preparer. | | | | may earn up to $120 per return. We should note |
| You should consider, training and certification, the basic | | | | however that the charge out rate is not always fixed |
| equipment necessary to operate, service rates/fees, | | | | and is highly dependent on the complexity of the |
| promotion and customer care. | | | | returns, the availability of information to do the returns |
| Training and Certification: | | | | and the cooperation of the client. |
| Nothing is worse than service providers who have no | | | | Promotion and Advertising: |
| idea how to provide the service they offer. Training | | | | Home based tax preparers usually find it difficult to get |
| and certification is key if you are going to run a | | | | the necessary number of clients to make their service |
| successful home based tax preparation service. If you | | | | viable. A number of measures can be taken to |
| are a CPA or have worked as an Accountant, this | | | | increase your client base and are as follows: |
| business should be easier for you, however, for those | | | | * Seek clients within your family first. Most home |
| who have no accounting experience or education, you | | | | based tax preparers start by doing returns for |
| should seek to complete a training course surrounding | | | | members of their family; |
| taxation. The IRS offers training courses in return for | | | | * You can also approach close friends with your |
| your volunteer service on their tax help line. Companies | | | | service, who, can in turn spread the word to their |
| like H & R Block and Jackson Hewitt also offers | | | | friends; |
| affordable tax courses. The advantage of doing a tax | | | | * Charging rates below the market value can also be |
| course is not only that you will have the required skill to | | | | a good means of promoting your service. Some |
| file returns but prospective clients will be more willing to | | | | charge up to half of the average rate in order to steal |
| use your services. | | | | clients from their competitors; |
| The basic equipment necessary to operate : | | | | * Social networking is also a good way to increase |
| You will require a computer, a taxation software and | | | | your customer base. Since you have approached |
| internet access. In the past, taxation was done | | | | family and friends already, you should try to meet new |
| manually and therefore was more likely to be | | | | people and at the same time, tactfully introduce your |
| inaccurate and time consuming. With technology | | | | service to your new acquaintances; |
| however, returns can be done quickly and more | | | | * Some have advertised on websites or have set up |
| accurately. Along with accuracy and the speed at | | | | their own sites and have advertised with Google; |
| which returns can be done, most software ensures | | | | * You can also advertise your service on Craigslist or |
| that all the required information is included in the return, | | | | your local newspapers; and |
| returns and other information can be easily stored for | | | | * You can advertise on Bulletin boards, hand out fliers |
| future reference, returns look more professional and | | | | and business cards or distribute brochures which gives |
| you can file returns online using the tax software. | | | | details of your service. |
| There are many tax software's available on the | | | | Customer Care: |
| market, but the software that most home based tax | | | | As with any business, customer care is critical to you |
| preparers use is Turbo Tax. | | | | keeping the customer base happy and committed to |
| If you plan to complete manual returns, then you should | | | | your service. To encourage good relations with your |
| consider downloading the required forms from the IRS | | | | clients you must: |
| website. The forms you may need are as follows, | | | | * be dependable and have a track record of filing |
| 1040 and 1040EZ, schedules and supplemental forms, | | | | returns in a timely manner; |
| as well as the 1040, 1040EZ, Schedules and | | | | * always be courteous; |
| supplemental forms. You should also ensure that you | | | | * be available for queries; |
| have a good supply of stationary like, Pocket folders, | | | | * provide copies of returns that are professionally |
| Labels, Paper, Paper clips, Staples etc. | | | | done, neat and without inaccuracies; and |
| Service Rates/Fees: | | | | * be responsive to the needs of the client. |