A tax preparation business is actually an extremely suitable career choice for someone who needs to look after a young family or someone who prefers to work at home. Startup expenses are modest and most of these occur when you get started, at the same time this type of work is seasonal so it can work well in conjunction with other work or personal commitments that you have to take into consideration. Follow these smart tips to get up and running.
1. Training and getting ready to enter the game
The fact is that many thousands of Canadians complete their tax return themselves each year, so how could you be of any assistance? Well the answer to that is that if you already have professional qualifications you are ready to take up this opportunity, if not you can enroll on a training course that will give you the skills that you need, look out on the internet for tax preparation training courses.
2. What business license will you need?
You will need a license to practice as a tax preparation specialist; the type of license will depend on which province of Canada you plan to work in and which province of Canada you intend to get your clients from. It is vitally important that you have a valid license before you get started.
3. Business liability insurance is a must have
Don’t make a most basic but dangerous mistake by not having business liability insurance. Without this cover you could find yourself liable for thousands of dollars of damages having been judged to have made a mistake or an error as part of your tax preparation services so don’t take a chance, get yourself fully covered.
4. Choose your tax preparation software
Using software is not mandatory for a tax preparation professional however it does make you and your services more professional and probably allow you to charge a little more. Not only do presentable printed reports look good, if you have a maintenance contract with the software provider you will get program updates that include the latest new tax legislation.
5. Use E-Filing
Most of your clients will ask you to file the tax return electronically, there are incentives for this from the government and so you should have access to this service. Electronic filing is more convenient as it is faster, costs less than posting returns and most important of all gets you a receipt so the tax return cannot be “lost” by the tax authorities. This is good news for you and your clients.