Tax Simplification: “Not Gonna Happen”

A recent student asked me how to respond to a well-meaning relative who felt that accounting was a dying occupation because of tax simplification. I’m often asked if a simpler tax code, meaning flat-tax or federal sales tax, would eliminate the need for accountants. Those who ask this question obviously don’t understand what an accountant does.First of all, I don’t think such a tax bill could ever pass. Too many special interest organizations with powerful lobbying groups will lose too much to let any such bill pass without a fight.

• Religious organizations will argue that their funding from contributions will dry up.
• National homeowners’ associations will argue (and rightfully so) that homes will drop in value as mortgage interest will no longer be deductible.
• Medical organizations will buy TV ads telling stories about people with debilitating diseases and high medical bills going to ‘tax prison’ because they lost their medical deduction.

And, those are just the obvious problems.Plus, most tax simplification plans will tax the poor heavier and the wealthy lighter than they do now. That’s a hot-potato that neither political party will support.No, the public will never let such a thing happen.Even if we were to assume that such a tax program will be adopted, accountants will remain in high demand. Certainly simpler tax laws may eliminate tax preparers. But most tax preparers aren’t accountants.The primary and most beneficial roles accountants perform are in the area of management controls, and cash management. A company stands to gain much more through staying on top of these areas than saving on lower taxes. Let’s face it, companies don’t go out of business because they are paying too much in taxes, but they will if they have poor controls, or poor cash management.Big businesses certainly understand this. A large company I once worked for had four thousand accountants. Less than 1% of these accountants worked in the tax department. In other words, 99% of the accountants with this company were working on providing management with crucial information regarding profitability, while monitoring the company’s financial position. This company understood that income taxes are a necessary evil that require some attention, but the potential for business improvement is much greater in other areas.So, do we ignore taxes? Certainly not! Taxes must be completed, and done correctly according to law. Besides, a good tax preparer may save a tax payer hundreds of dollars, if not thousands in taxes — sometimes many times the cost to have the taxes prepared.Tax preparation will always be needed. And, my guess is that it will become even more complicated before becoming any easier.Regardless of the tax law, however, accountants will always be a critical part of the business world.Also, see the article entitled “Why are Businesses Begging for Your Services?” This is “must reading” for every freelance accountant.

The Professional Tax Preparer:

The Occupation as Certain as Death and Taxes

“Nothing is certain but death and taxes.” We’ve all laughed at that axiom before, right? The saying is intended to emphasize the inevitability of taxes. You can’t run from the IRS, just like you can’t run from death. But did you know that even if you die on April 14^th, your taxes are still due on the 15^th? And even Elvis still pays taxes. So you can’t escape taxes, even in death.

So where’s the good news in that, you ask? If every adult, dead or alive, must pay taxes, tax preparers not only have the largest potential client base of any profession around, they also enjoy serious job security. Add to that the potential to make $100+ an hour and you have an appealing line of work.

Countless Opportunities Becoming a tax preparer opens up countless career options. You could supplement your current income with part-time work in the evenings or on the weekends. You could turn your accounting/bookkeeping practice into a one-stop financial shop by adding tax preparation to your services. You could replace your full-time income by becoming a Professional Tax Preparer. Or you could build a successful tax firm. Whichever option appeals to you, the training necessary to become a tax preparer isn’t as long and painful as you might expect. Universal Accounting Center has made easy.

A Profitable Designation Others like you have earned the Professional Tax Preparation Certification with great success. Graduates have prepared tax forms for up to 50 individuals in their first year. At an average of $150 each, they made $7,500 working just the 45 days before April 15. For many people, this represents 3 months of salary. If you are the kind of individual that likes to work hard for a concentrated period of time and then have time to relax, preparing income tax forms could be perfect for you.

Once your business gets off the ground and you have clients and referrals coming in, your second year could be 3-4 times that number, or $22,500 to $30,000, working only a few months out of the year! For many, this represents what they make the entire year at a full-time job! We show you the ways to help grow your practice with proven strategies and tactics. Leave nothing to chance!

Click here to learn why adding tax preparation to your business makes sense … and money!

Additional Revenue Stream for Accounting and Bookkeeping BusinessesIf you already have an accounting or bookkeeping business, preparing taxes will be a natural fit for you. While the training for tax and accounting are different, they complement one another. If you are already good at preparing books, you have the types of abilities that you will need to prepare taxes. The accuracy, meticulous record-keeping, and patience that you rely on in your accounting or bookkeeping business will serve you well when preparing tax statements. Combine tax preparation and accounting/bookkeeping services, and you earn a terrific income all year long. It is easy to cross-sell from one service to another, making it easier to find clients, since you often will service the same client for both tasks.

If Someone Should Profit from Tax Season, it Might as Well Be You!

“There may be liberty and justice for all, but there are tax breaks only for some.” –Martin A Sullivan“Isn’t it appropriate that the month of the tax begins with April Fool’s Day and ends with cries of ‘May Day!’?” –Rob KnauerhasePeople love to joke about taxes, probably because everyone has to pay them and no one likes to. Tax law can be confusing, and laymen and woman generally don’t like to sort through it all. So most will either use popular computer software to do their taxes, or they’ll look to a tax professional for help.My father has his own accounting and tax practice, and I was surprised to find out that he wouldn’t have a business without the money he makes preparing taxes. In fact, over the years his clientele has shifted from accounting to tax simply because of demand. If you currently run your own accounting business the time has come for you to expand your business and increase your income.

Add Tax Services to the Menu

One proven technique in expanding your business is to add new services that will appeal to current and potential clients. Because everyone must pay taxes, in adding tax services to your menu you’re opening your business to a much broader prospective client base. You can charge $125 plus per hour and earn at least $7500 of additional income your first year! Not a bad promotion, right?While tax season can be hectic, it would keep your door swinging with business. Not only would you make more money, but you would change the nature of your practice. You would quickly become a full financial services provider, a one-stop shop for all your clients. Not only that, but accounting and tax services compliment one another perfectly. In a typical year, accountants find they’re least busy at the beginning of the year and busiest at the end of the year. The opposite scenario exists for tax preparers; they’re busiest at the beginning of the year with business dropping off after tax season. You could find yourself drawing in clients when you need them most!

The Power of a Professional Designation

In this day of pending legislation to regulate paid tax preparers, tax payers have become more interested in finding tax professionals with credentials demonstrating their expertise. A professional designation can do just that, putting your clients at ease and earning you immediate trust. It’s difficult to put a price on something that valuable.

The Professional Tax Preparer (PTP) Program is the Answer

Universal Accounting Center’s PTP Certification provides hands-on, video-based training in the preparation of individual and full business taxes, step-by-step instruction in starting a sole proprietorship, and one full year of follow-up support from expert tax preparers. When you complete the program you can choose to earn the Professional Tax Preparer Designation as well. UAC’s PTP Course is the most complete tax program on the market!Don’t let another tax season come and go without making a profit. Expand your business by offering full business services. Tax season could soon become your busiest and most profitable time of the year. Enroll in the PTP Course today!