How Much Can You Earn As Tax Professional?

Andy Frye from Pronto Tax School answers “How much can you earn as a tax professional?

Watch the video or read the transcript below, either way, Andy Frye of Pronto Tax School will give you some ideas of how you can figure out how much a tax pro can earn.

Question: “Hey Andy, how much can you earn as a tax professional?”

Andy Frye: “You’ll find out when you get into the tax business that the answer to most questions is ‘it depends.’ So, when it comes to how much money you can make as a tax professional, it depends on a few factors. First of all, if you’re working at a company, you need to understand the compensation plan that applies to that company. A lot of companies are going to pay hourly, straight hourly with a little bonus performance bonus. So, you want to know those numbers ahead of time, and that will basically tell you how many hours you’re going to work, what you’re going to make hourly, and then how much bonus you’re going to get if you hit your numbers.

Other companies that hire you will pay a commission-based salary, and so in that case, you really need to know how many tax returns you are going to prepare most likely, and how much is the fee, the average fee, and then you’re going to multiply that by your commission rate.

Now, if you go self-employed and you have your own tax business, you need to do a budget so that you can see, ‘Hey, if I get this amount of clients, I charge this amount, and this is the money that I spend or invest to do my business, this is about what I should net.’ Obviously, if you’re just starting out in your own business, that number when you start out may not be as big as you want it to be because you’re just starting your business.

So, when we talk about how much money you make as a Tax Preparer, you’ll see online, you know, you’ll see $20 to $40 an hour, right? But you really got to dig into the actual situation and the numbers. If you have a job at a company, how do they pay, and what’s your expectation of that payment? And then if you’re self-employed, if you’re planning on being self-employed, do that budget, look at your pricing, look at your number of clients, and that should give you an idea of how much you’re going to make. So, it does depend, and those are the main things that it depends upon.”

And if your thinking about starting a tax preparation business, then you might be interested in the “How to Start and Grow Your Tax Business” that we offer. We offer a free introductory webinar that gives you a Crash Course on how to get your tax business started. And if you want the full monty, then we offer a 6 week online live course. Both the intro webinar and the online course are open to members and non-members.

Introductory Crash Course is this
Saturday May 4th – 9 am PST / 12 pm EST FREE

The 6 Week Online Live Course starts
Tuesday May 7th and happens every week for 6 weeks

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Let's Make Sure We Direct You to the Right
Training for Your Needs!

Please click the button below for your primary tax credential.

Not sure which credential applies to your situation?  Click here to reach our support team and we'll help you decide.