How to make money year-round as tax preparer

As tax professionals, we understand the importance of sustaining a thriving tax preparation business year-round. While tax season brings an influx of clients, many people may wonder, “How do tax preparers make money year-round?”

In this guide, we will explore innovative approaches to expand your revenue streams to help make your tax prep business profitable year-round. Drawing inspiration from industry experts, we’ll delve into year-round tax preparation and the services that can help ensure financial stability throughout the year.

Recognizing the cyclical nature of tax season, successful tax professionals are increasingly seeking to broaden their service offerings for consistent income. Here are some of the ways you can add additional services and revenue streams for your business.

Enhance skills with bookkeeping services

Incorporating bookkeeping services anchors your business year-round and will ensure you have a steady flow of revenue year-round. It positions you as a trusted financial adviser with value extending far beyond tax obligations. Offering services such as financial statement preparation, general ledger maintenance, bank reconciliations and meticulous record-keeping, you become an indispensable partner in your clients’ financial well-being. This comprehensive approach ensures that you’re not only aiding in tax preparation but actively contributing to their long-term financial success.

Moreover, advanced courses provided by established organizations like the National Association of Certified Public Bookkeepers offer specialized training in bookkeeping principles. Utilizing industry-standard software like Intuit’s QuickBooks, as recommended by most experienced bookkeepers, enhances your proficiency and ensures seamless financial management for your clients. By becoming proficient in these resources, you’re equipped to offer the highest quality bookkeeping services to your clients, further solidifying your position as a year-round financial adviser.

Streamline business with payroll services

Integrating payroll services into your portfolio is a strategic move, especially for business-oriented clientele. It transforms you into an invaluable asset for your clients, ensuring year-round tax preparation services.

Handling payroll demands precision, and businesses are often willing to invest in a skilled professional to ensure compliance with tax laws and accurate payroll processing. By providing this service, you alleviate a significant burden for your clients, solidifying your position as a year-round resource.

Furthermore, staying updated with the latest payroll regulations and technologies is essential. Reputable resources like the American Payroll Association and the Society for Human Resource Management (SHRM) offer extensive courses and certifications. Leveraging advanced payroll software ensures efficiency and compliance. By offering these expert services, you not only provide essential financial support but also establish yourself as a go-to expert in year-round payroll management. This, in turn, contributes significantly to your clients’ confidence and your consistent revenue stream.

Offer comprehensive financial services

Clients often seek financial advice beyond tax-related matters. By expanding your services to encompass financial planning, you strengthen your relationship with clients and unlock new revenue streams, contributing to year-round income.

Offering services like retirement planning, investment advising, estate planning and debt management positions you as a holistic financial adviser. This comprehensive approach deepens client trust and establishes you as a go-to resource for their financial needs throughout the year.

To excel in this area, consider obtaining certifications such as certified financial planner (CFP) or chartered financial analyst (CFA). Organizations like the CFP Board and the CFA Institute provide extensive resources and education for professionals in financial planning and analysis. By becoming a trusted financial adviser, you enhance your clients’ financial well-being and secure a steady flow of year-round income. This diversified approach ensures that your expertise extends far beyond tax season, solidifying your position as an indispensable financial partner.

Advocate for your clients

Becoming an enrolled agent (EA) empowers you with unlimited representation rights before the IRS. This allows you to advocate for your clients on a wide range of matters, ensuring year-round tax preparation services.

Having the authority to represent your clients in IRS matters, whether it’s an audit, tax collection or appeals process, adds tremendous value to your services. Clients seeking year-round financial security will greatly appreciate this level of expertise and advocacy.

To become an enrolled agent, comprehensive exam preparation resources are available, like Surgent EA Review, one of the top providers for professional tax preparers who want to become enrolled agents. Additionally, the IRS itself offers a wealth of information on the enrolled agent certification process.

By gaining this qualification, you position yourself as a dedicated advocate for your clients’ financial interests throughout the year. This helps establish trust and ensures that your clients have a knowledgeable and capable professional by their side. Your expertise in representation rights further solidifies your role as a year-round financial ally.

Explore new horizons

While these services represent well-trodden paths to diversification, there are several unconventional avenues that warrant exploration:

  • Outsource tax preparation: Many accounting firms are actively seeking partners for tax preparation outsourcing, presenting an enticing opportunity for additional revenue generation.
  • Try real estate brokering: Attaining a broker’s license opens a distinct revenue stream. Brokers, elevated beyond the agent tier, navigate state mandates and are authorized to operate solo or assemble teams of agents.
  • Insurance brokerage: Similar to real estate brokerage, representing major insurance agencies offers an additional avenue for diversification.
  • ACA insurance navigator: With the Affordable Care Act firmly established, individuals can venture into brokering or agency representation for the Affordable Care Act Health Insurance Exchange.
  • Pioneering tax education: Surgent Income Tax School blossomed from an in-house need to amplify revenue streams. This blueprint can be emulated, offering turnkey solutions for recruitment and training of tax preparers.

Fortify the foundation of your tax practice

Fostering a resilient tax practice requires a dynamic approach that extends well beyond the confines of tax season. By embracing diversification and expanding your service offerings, you fortify the foundation of your business. This comprehensive strategy not only ensures a steady flow of income year-round but also positions you as a trusted financial adviser with expertise extending far beyond tax obligations.

Staying abreast of industry trends and seeking advanced certifications showcases your commitment to excellence. It instills confidence in your clients, assuring them that they have a dedicated and knowledgeable professional at their side throughout the year. A thriving tax practice is one that adapts, evolves and diversifies. By incorporating these strategies, you weather seasonal fluctuations and lay the groundwork for lasting success in the dynamic world of tax preparation. With a resilient approach, your practice will be poised to flourish, providing invaluable support and guidance to your clients, regardless of the season.