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Posts Tagged ‘Tax’

Starting a Bookkeeping and Tax Preparation Business

Friday, July 23rd, 2010

When you are in request of money a quick payday loan is always useful for your money terror. You end up with costs that weren’t anticipated or car repairs that usually happen in the worst times. And if you aren’t covered for that additional expense because you’ve got no money laying around, then you may wish to apply for a cash loan or payday loan. These cash advance financial loans are close to bank financial loans but not exactly.

Nobody likes to do taxes, and it can be a especially complicated task for those who own their own business. Although most of your potential customers will maintain accounting records of their weekly, you can provide this additional service to those who want it.

To sell your service you should make a minimum investment in a Yellow Pages listing under “Tax Return Preparation” (or “Bookkeeping Service”), as well as placing small classified ads in your local newspaper. Personal visits to community retailers are helpful, especially if you have the time to strike up a conversation, mention what business you are in and leave a business card for the retailer’s reference.

A natural outgrowth of this business is, of course, individual tax return preparation. Most owners of businesses tend to use their business tax returns for their personal profit. Although personal tax preparation is a seasonal business, it can be extremely attractive. H&R Block has grown to become a multimillion-dollar business on this “seasonal” work alone.

For your business clients you should set your rates so that you make at least $20 an hour. Since quarterly tax returns will come due for different customers at different times (because they are not all on the same financial schedule), you can plan your time for appropriate. To keep your rates competitive, check the competition. Call a few of the bookkeeping or tax preparation services listed in the Yellow Pages and ask them their rates as if you were a potential client.

Your goal in this business is to establish a growing list of clients. But even as a solo practitioner, handling only the number of clients you can service by yourself, your income can easily top $50,000 a year. If you wish to grow larger, you could end up supervising an office full of trained staff members. Your initial investment to start this business need be nothing more than the cost of a supply of business cards and letterheads.

Find the Right Tax Accountant

Tuesday, January 6th, 2009

You need to make sure that you make the right choice, when looking for a professional to handle your taxes. There are many benefits of having a tax accountant handle your taxes, but you should ask plenty of questions before you place all of your most important information in a stranger’s hands. Why would you need a tax accountant? Most people feel that they can handle their own tax situation, however, there are some benefits that make hiring someone well worth the cost.

For example, preparing your own taxes can be quite time-consuming and stressful. You can be left with a lingering fear of an audit situation. Many people are frustrated and confused — which can lead to mistakes. Hiring a professional gives your tax returns an increased level of accuracy. Your tax situation could be quite complex, including stock market investments, business dealings, rental properties and other tax situations. If it is, you will need specialized advice.

A tax professional could be very helpful, if you have the goal of paying as little taxes as possible. He or she can provide you with detailed planning and advice. If you are facing a tax situation, such as the filing of back taxes, paying off a tax debt or fighting an audit, you shouldn’t go through it alone. When looking for an experienced tax accountant, you need to make sure that you find the best professional for your financial situation. Ask your friends, family and business associates who they would recommend. It helps to ask someone who has a similar tax situation as you do.

Accountants should never promise you big refunds. If someone tells you that everything is deductible, you should be wary. You will be ultimately responsible for all of the information on your tax return in the eyes of the IRS, not your accountant. There is nothing wrong with switching accountants. If you aren’t comfortable or feel that your accountant isn’t right for your financial situation, you need to do what is best for your tax situation. Don’t feel that you have to be loyal to your accountant no matter what. I recently had a friend tell me that they stay with their accountant because he is great at what he does, even if he doesn’t let them take deductions that they qualify for.

Retail franchises could provide adequate services for your needs, if you have a relatively straight-forward tax return. Some tax preparers are more experienced. You often can find a CPA or an Enrolled Agent working in a tax preparation company. Ask if you can meet with a CPA, enrolled agent or the senior tax preparer. As you are charged by the number of tax forms necessary to file your taxes, you won’t pay any more to talk to someone with more experience.

Local tax firms offer specialize in individuals and small businesses. Make sure that you check out their expertise to make sure that they can handle your taxes. Enrolled Agents have passed a rigorous test and a background check by the IS. They often specialize in complex tax situations. CPAs have passed the CPA exam and are licensed by the state they work in. They usually specialize in specific areas, such as audits, taxes or business consulting. They are best for complex accounting, however not all CPAs will handle tax situations.