As we point out in our article about why to become a tax preparer, there are many reasons why someone might choose to become a tax professional.
Our recent Pronto Tax Class Live course held in Carson was an illustration of the various reasons why people choose to take our basic income tax course to become a tax preparer: one student simply wanted to be able to do his own and his family members' taxes, another student was already working at a tax company and looking to get a raise by acquiring a new credential, another student was exploring a "Plan B" option if God forbid he gets laid off from his day job.
But no matter what your reason for considering becoming a professional tax preparer, there is one aspect of becoming a tax pro that is appealing to all demograhics and that is:
It is REALLY cheap (with Pronto Tax Class) to become a tax preparer! And it's not really cheap to have your taxes professionally prepared. This equation equals opportunity for the newly minted tax preparers such as are graduating daily from our 60-hour online basic income tax course.
We are currently working on our reviews of the best tax preparation software for new beginning tax preparers and we should be able to release those reviews of professional tax prep software within 7-14 days once we complete our testing.
However, newly minted tax preparers should not wait for us (or anyone else) to tell them what is the best tax preparation software to use. Instead, beginning tax preparers should request free "demo" version of various tax preparation software options and test these programs out for themselves. Read more to find out why it's best to test!
How Many Tax Returns Do You Need to Do to Make It "Worth It" to Become a Tax Preparer?
We received an interesting report yesterday from our partner bank, Refund Advantage. The report showed how many tax returns were e-filed in the 90745 Carson, California zip code during the 2011 tax season. We were happy to see that our Carson team with Kent Frye and Joel Earnest and Sonia Lugo e-filed more tax returns in 2011 than any other tax preparation company in Carson, California. That was gratifying to see all the hard work that Kent, Joel, and Sonia put into serving clients pay off by having the most clients in the 90745 zip code.
But what was a bit troubling was our realization, by looking at this report, that many tax preparers are not doing barely any tax returns per year. This is unfortunate, is somethikng that we'd like to help our Pronto Tax Class Students avoid, and brings us to the question: How many tax returns do YOU need to do this tax season to pull a decent profit as a first-year tax preparer?
All tax preparers are entrepreneurs--but some of them haven't realized it yet. What do we mean by this statement?
Well, it's as simple as this: every year as a tax pro, you must COMPETE for your clients' business, and in order to compete effectively, you have to summon your inner entrepreneur and market yourself effectively, "close" sales, and then market more and close more.
If you don't compete with an entrepreneurial spirit, you won't win clients like you can and should! Click "read more" to read more, but before you do that, make sure to watch this classic movie clip:
IRS Sending Out "Warning" Letters to Tax Preparers
It is never a good feeling when you receive mail from the Internal Revenue Service (except, of course, when it's a refund check). Yesterday, one of our tax preparers here at Pronto arrived home to an IRS letter from the IRS essentially saying that this tax preparer needs to "watch out" when filing Schedule A, Itemized Deductions. Click "read more" to find out more about these IRS letters that are going out to "at-risk" tax preparers.
IRS PTIN System Overloaded, Not Yet Processing New Tax Preparer PTINs
We heard from a Pronto Tax Class Student today that she was not able to get her Preparer Tax Identificatin Number (PTIN) from the IRS website. Normally, new tax preparers are able to get their PTINs completely online at: http://www.irs.gov/taxpros/article/0,,id=210909,00.html. But now it appears that the IRS system is not processing new tax preparer PTIN applications, they are only renewing PTINs for existing tax preparers.
What is the deal, when will IRS start processing PTIN applications for new tax preparers?
Click "read more" link below to see what we've found out about this issue, also here is a link to the IRS PTIN video so you can keep in mind the overall IRS PTIN initiative:
We speak in our "how much money tax preparers make" article about how most first year tax preparers make about $10 per hour, and this is true no matter if you work at the fanciest CPA firm or a mainstream tax prep chain. But there is a select group that can make $15-$20 per hour. Here is a video excerpted from Pronto Tax Class that gives you a few keys to success to making more money as a tax preparer:
We would especially encourage new tax preparers who want to earn the maximum amount in their early tax seasons to follow advice number one and that is to find a niche, don't try to be "all things to all people."
But what niche should you pursue, and how do you know if a niche is worth pursuing?
Three Tips for New Tax Preparers to Start Getting Clients
Now that we have students graduating from our online tax course at ProntoTaxClass.com, we have started to encounter the "Now what?" question from our recently-minted professional tax preparers. As we've said from the beginning of this course, our goal is for our students to actually make money doing taxes, not just take a tax course and be able to say "I'm a professional tax preparer."
Therefore, this "Now what?" question is very important to us, to try to help our Pronto Tax Class Graduates find a profitable place in the tax business. In reality, though, it is YOU who will need to take action to get your first 100, 500, and then 1,000 tax clients. So, what concrete actions can a new tax preparer take to start acquiring clients?
There are a lot of questions that are swirling around about this IRS Competency Test, what it means for the new tax preparer, when it is due, and so forth.
We had an interesting question this morning via email from a recent graduate of Pronto Tax Class wondering if she would have to take more hours of education and take the IRS test before she can do taxes.
The short answer to this is "NO"! You do NOT need to take any more courses or tests except Pronto Tax Class to be eligible to do taxes for pay in 2012.
One thing that can never be underestimated is the power of persistence. Anywhere you look, you will see evidence that people who persevere, who may not achieve all goals the first time but then try and try again, get what they want out of life. This early group of Pronto Tax Class Students deserves a lot of credit for being persistent to pass our 60-hour online tax course.