Start a Tax Business — Where to Start


When we think about what it takes to start a tax business, it can be an overwhelming prospect at first. But the truth is starting a tax planning and preparation business can be a rewarding career move that’s easy to achieve with the right training and mentorship. As a tax preparer, you will work with individuals and businesses to prepare and file their tax returns. You will need to have strong attention to detail, knowledge of tax laws and regulations, and good communication skills to start a successful tax business.


Skills Needed to Become a Tax Preparer

To be a successful tax preparer, there are several key skills that you will need to possess. These include:


  1. Attention to Detail – Tax preparation requires a great deal of accuracy and attention to detail. You will need to carefully review all of your clients’ financial records and ensure that all income, deductions, and credits are properly reported.
  2. Knowledge of Tax Laws and Regulations – Tax laws and regulations can be complex and constantly changing. You will need to stay up to date on any changes in the tax code to provide the most accurate advice and assistance to your clients.
  3. Good Communication Skills – As a tax preparer, you will need to communicate effectively with your clients to gather all necessary information and answer any questions they may have. You will also need to be able to clearly explain complex tax concepts to clients in a way they can understand.
  4. Strong Organizational Skills – Tax preparation involves managing large volumes of financial records, deadlines, and paperwork. You will need to be highly organized and able to manage multiple clients and deadlines at the same time.

Resources Needed to Start a Tax Business

In addition to these key skills, here are some resources you’ll need to start a tax business:


  1. Tax Preparation Software – Tax preparation software is a crucial tool for tax preparers. It can help you prepare accurate tax returns and easily file them with the IRS and state tax authorities.
  2. IRS Publications and Forms – The IRS provides a wealth of information and resources for tax preparers on their website, including forms, publications, and guides to help you understand tax laws and regulations.
  3. Professional Associations – Joining a professional association, such as the National Association of Tax Professionals (NATP) or the National Society of Accountants (NSA), can provide you with valuable networking opportunities, continuing education, and other resources to help you grow your business.

Responsibilities of Tax Preparers

As a tax preparer, your responsibilities will vary depending on your clients and the services you provide. Some common responsibilities include:


  1. Gathering Financial Records – You will need to gather all necessary financial records from your clients, including income statements, expense reports, and any other relevant financial information.
  2. Preparing and Filing Tax Returns – You will need to prepare accurate tax returns for your clients and file them with the appropriate tax authorities.
  3. Providing Tax Planning and Advice – You may also provide tax planning and advice to clients, helping them minimize their tax liabilities and maximize their refunds.
  4. Representing Clients in Audits – In the event that a client is audited by the IRS or state tax authorities, you may represent them in the audit process and provide any necessary documentation to support their tax returns.

Training and Mentorship to Start a Tax Business

For those who are interested in becoming a professional tax preparer but are unsure where to start, training centers like Universal Accounting Center can provide the training and mentorship needed to start working as a tax preparer with confidence and competence. These programs can teach you the skills and knowledge you need to be successful in the field, as well as provide you with valuable networking opportunities and access to professional resources.


Universal Accounting has helped folks start a tax business for more than 40 years with scores of success stories of people who elevated their lifestyle with new training and skills in hand. Universal’s online video courses are self-paced and come with a community on social media to help you achieve your goals in the world of accounting.  Get a FREE copy of the Turnkey Business Plan for tax professionals and call Universal today at 877-801-8080 to learn how you can enroll, or schedule a time to talk when it’s convenient for you.

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