If you are an experienced tax professional and want to expand your business, consider running a tax service bureau. There’s plenty of demand for professional tax preparation services, and a tax service bureau may be an ideal and lucrative business path for you.
Starting a tax service bureau commonly requires strategic planning and preparation. Below we discuss the steps to start your bureau, legal and licensing requirements, and tips to successfully scale your business.
What Is a Tax Service Bureau?
A tax service bureau typically provides tax preparation services, consulting, payroll processing, bookkeeping, and tax software to tax professionals and businesses. As a tax service bureau, you’ll have access to the latest service bureau tax software, tools, and resources. This is a terrific way to expand your influence and maximize earnings. You’ll also have full control over setting standards, managing workflows, and overseeing the quality of returns prepared, while ensuring compliance.
Steps to Start Your Bureau
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Create a comprehensive business plan.
A detailed business plan is essentially a roadmap for a business and its growth. A business plan needs to outline your goals and identify your unique selling points as well as your target audience and should include financial projections.
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Get the required licenses and permits.
To run your business, you may need to obtain a tax preparation license, a business license, and other permits. The necessary licensing and permits vary according to the state that your business is located in.
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Choose the right tax software.
Generate extra income for your tax business and impress clients with the right tax software. Sigma Tax Pro software solutions provides clients with all of the tools needed for a successful tax season. As a reseller, you will have your own company-branded professional tax software and be in complete control of your tax business while generating extra income. Sigma Tax Pro’s Management Dashboard allows you to set up sub-offices, review any returns filed, and get real-time reports when you need them.
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Hire and train staff.
Hire qualified tax preparers, bookkeepers, CPAs, and payroll specialists, and provide adequate training. Your staff plays a vital role in building your bureau’s reputation and client trust, ultimately contributing to the success of your tax business.
Legal Requirements and Licensing
You’ll need to comply with legal requirements and obtain the necessary licenses and permits before starting your tax service bureau. While the requirements depend on your location and the services that your business offers, regulations may include a Preparer Tax Identification Number from the IRS, permits and licenses from your local government, and bonding requirements. You’ll also need data security measures to comply with privacy regulations and to protect your clients’ data.
Maximizing Tax Prep Revenue
There are several strategies that may help you maximize tax prep revenue for your tax preparation business:
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Provide a wide range of tax services —
Providing an extensive range of services will enable you to attract a broader range of clients and increase your revenue.
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Leverage technology —
Use the latest tax software and tools to streamline your tax preparation process and improve efficiency.
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Competitive fees —
Research the pricing strategies of your competitors and set your fees accordingly.
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Upselling and cross-selling —
Identify opportunities to upsell clients to higher-level tax services or cross-sell related services.
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Seasonal tax promotions —
Consider offering discounts or promotions during the peak tax season.
Scaling Your Tax Business
Once your tax service bureau has been established, be sure to focus on scaling your business in order to build your client base and brand. Consider expanding your marketing efforts by using social media platforms, emails, and other strategies, which will most likely help you reach a wider audience. Having a talented and resolute team that can handle an increased workload also helps to scale your tax business.
When you provide expert tax preparation, planning, and support to clients, setting up your own successful tax service bureau could maximize your revenue. Sigma Tax Pro delivers a full range of essential services for professional tax preparers, accountants, and CPAs, providing tax preparers with a professional edge for their businesses.