What Are The Rules For Some Common Business Deductions I Can Make
As a business owner, youre able to deduct some expenses. This is valuable because business deductions decrease your taxable income, which will reduce how much you have to pay in taxes. You wont want to forget to take all of your allowable deductions! Your accountant knows your business and can advise which deductions you should be able to take.
Some common deductions you might have are:
Home Office Deduction
Is your home your principal place of business? If so, you may be able to take a deduction for the amount of space in your home that is occupied by your business. To qualify, youll need to have a separate space that is regularly used exclusively as an office.
Internet and Cell Phone
If you use the internet and a cell phone for your business, you can claim them as a business deduction. But keep in mind that if you use your internet and your cell phone for both business and personal use, you can only deduct a portion of your billthe percentage that is allocated to your business use.
If your business has you on the road, youll be able to take a deduction for travel expenses that take you away from home. Your accountant can give you more advice on whats allowed, but some things that are deductible are your transportation, lodging and meals.
Earning Trust By Safeguarding Client Confidentiality
Setting up a TaxWise® Virtual Tax Office
Because of virtual tax offices, the barrier of entry to starting your practice is much lower than it was just 10 to 20 years ago, Sampson says. You just need to buy a laptop, purchase TaxWise Online, and youre up and running. A virtual tax office consists of:
Allows you to access tax returns anytime, anywhere with an internet connection so you can support your clients no matter where you are. TaxWise Online requires no installation or software updates and has minimal system requirements.
Secure Online Document Storage
With encrypted cloud-based document storage and a secure portal for two-way file sharing, you can safely exchange documents with clients without seeing them face to face.
With a dedicated mobile site, taxpayers can meet with you, exchange documents, and provide an e-signature, all from their laptop, tablet, or smartphone. That means convenience for both of you, and plenty of options for safe, contactless transactions.
Learn more about making the switch to TaxWise Online
Wolters Kluwer Tax and Accounting is a leading provider of software solutions and expertise that helps tax, accounting and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed and accuracy.
Is There Anything Else I Can Do To Reduce My Tax Bill
This is probably one of the most popular tax questions. While your tax year is likely over by the time you meet with your accountant, you may still be able to reduce your tax bill. Talk to your accountant about what options are available to you. One of the most common ways to reduce your tax liability after the tax year is over is to contribute money to an individual retirement account .
Talk to your accountant to see if this is a strategy you can use and how much you can contribute to your retirement account. There are contribution limits based on your business income.
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Your Customers Are Already Coming To You
Building up your business-owner client base is probably easier than you thinkjust listen to your current customers. According to a survey of Endorsed Local Provider tax referrals, 10% of personal filers also request help with small business tax returns.
When I get clients who say they have their own business, I tell them about my business services, Susan Lange with Advantage 3 Tax & Financial Services told us. I explain that Ill respect their budget and help as much or as little as they want.
All of the tax professionals we talked to said if you make it a point to super-serve your clients, word will get around.
Word of mouth builds a business, Josh Knapp with Knapp Bookkeeping Service told us. Business owners hang out with business owners, and they talk about tax savings or financial planning. If youve helped them with a good tax plan or financial plan, theyll tell their friends about it.
Optimize Your Website For Local Search Its Free
Your prospects are looking for you or SOMEONE local who provides tax preparation services online and given Google is the #1 search engine in the world You need your business showing up on Google for local searches! According to people who conduct local searches are ready to take action:
- 50% of consumers who conducted a local search on their smartphone visited a store within ONE day
- 34% of people who searched on a computer or tablet did the same
Thats why you should create your FREE
All of the major search engines offer these free listings, but they dont always make the sign-up pages easy to find. Tip: The more information you can add, the better!
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The 3 Components Of Cirrusview
It does this with three main components: marketing resources, software and reports, and training and coaching.
The marketing resources include seminar presentations, customizable books, TV and radio scripts, one-pagers, white papers and worksheets.
The software produces reports including:
- Side-by-side comparisons of taxes with indexed universal life insurance or individual retirement account
- A clients tax burden
- Tax, wealth and income analysis
- Potential tax impact
- Cost analysis of an IUL contract
The tax burden report is the No. 1 report that leads to the most sales, oftentimes showing clients that they can save hundreds of thousands of dollars with the solutions you provide. Together, the different reports help you tell the story of what the client could potentially pay in taxes and how your solutions will lessen the tax burden.
You also get training and coaching to do more IUL, whatever your level of experience. Whether youre beginning or proficient in IUL, the online course will take you to the next level. You also can access a monthly roundtable webinar and a study group on topics such as how to adapt to changes in the industry.
Dont Try To Grow Your Business Without Understanding These Laws First
People often talk about the financial challenges associated with growing a business, but what about the legal challenges? Its true that you need to focus on managing your money well but you also need to think about potential legal problems. There are a lot of laws that govern business operations and they become more complicated as the business expands.
If you are planning to grow your business, make sure that you understand these legal issues first.
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Establish A Means For Maintaining Business Compliance
Tax preparation businesses must follow through with some ongoing compliance obligations. The exact responsibilities will depend on the business structure and business location.
Some of the possible requirements include:
- Filing the businesss own tax returns and paying taxes
- Renewing the PTIN
- Holding member or shareholder meetings
- Recording company changes via Articles of Amendment
- Filing annual reports
Fines, penalties, and even suspension or administrative dissolution could happen if a company ignores its compliance duties. CorpNets free Compliance Portal provides a way to track business compliance requirements. Also, ask your attorney and accountant to verify what you must do and when deadlines occur.
How To Get Started With Your Own Tax Business
The first thing you will need is a solid foundation of tax knowledge. Surgent Income Tax School offers tax courses online, 24/7. So you can get started right away!
After just one 48-hour Comprehensive Tax Course, you will be able to prepare tax returns for most individual U.S. taxpayers. This tax course can be completed in just weeks! If you want to be able to prepare tax returns for small businesses, then you will also want to take the 30-hour Small Business I Tax Course.
Chapter : How To Start A Tax Business
Since 2000, the business of tax preparation has been a lucrative one. The complexities of tax returns have driven individuals and businesses to seek out professional assistance. In 2019, 56% or 71,725,000 of e-filed tax returns were accomplished by tax pros.
Tax professionals can include Tax Preparers, Enrolled Agents, Certified Public Accountants , and Tax Attorneys. They need to be registered with the IRS to file tax returns on behalf of clients.
Every year, people undergo training to become a tax preparer. They also register, and start their own business or get employed. Overall, the IRS issued 773,911 Preparer Tax Identification Number registrations and 360,000 Electronic Filing Identification Number registrations for the year 2019.
Graph from the Bureau of Labor Statistics
The top five states with the most tax professionals are California, Texas, Florida, New York, and Illinois.
Tax office work is annual in nature. The busy season runs from January to April of each year. In addition to the dedicated preparers, a fair number of accounting and law firms expand their services to include tax preparation.
Building a tax preparation business is easy. It has minimal start-up costs and a high return. It’s also a stable career. If you’ve just graduated from high school and want to start a career in finance, becoming a tax preparer can be your first step.
Chapter : Investing In Your Own Office Space
Should you get your own office? This is a crucial decision that every new tax preparer must deliberate on when starting their business. You have to carefully weigh the pros and cons before renting your own office space.
Starting with a home office is a viable option. One advantage of tax preparation as a business is the ease of doing it from your home office. As long as you have enough space to accommodate your clients for meetings, you can start in the comfort of your home.
Of course, having an office space will lend credibility to your business. Clients will be more likely to trust you and view you as a professional.
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Market Your New Business
No business should rely on the build it and they will come approach to acquiring customers. This applies to tax preparation businesses from home, too. Consider these marketing and advertising assets and tactics for spreading the word about your business:
- Obtain business cards You can hand them out virtually wherever you gosocial events, church, at your kids sports events, etc.
- Create a professional website It wouldnt have to be big or complex. A simple one-page site can establish an online presence and give potential customers a way to learn more about your capabilities.
- Set up social media business accounts Social media accounts give potential customers another way to find and connect with you online. LinkedIn, being a professional-focused platform, may be especially beneficial. A Facebook page will also be incredibly helpful.
- Set up Google My Business Google My Business feeds both Google local search and Google map results, so it is incredibly important for local searches.
- Join networking group Active memberships in the local Chamber of Commerce, Rotary Club, etc. will help get the word out about you and your new business.
Diversify Your Offer Lineup
Look into diversifying your offers. What complementary products or services or information can you offer in your business? In order to grow, you need to think about expansion. Identify new opportunities within your niche. Uncover the pain points. What else can you sell to your clients. Where else can you add value in the exchange?
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Find Your Target Audience
According to Bain & Company, acquiring a new client costs 6 to 7 times more than retaining an existing one. To avoid wasting money, you want to create strategic ads tailored to your target audience. You might be wondering: Who is my target audience? One way you can find out is to look through your current client database and find common characteristics among them. As you look through your clients information, ask yourself questions such as:
- How old are they?
- Do they file as married or single?
- Are they homeowners?
- What is their income bracket?
The answers to these questions can help you develop a customized targeted ad that could lead to more potential clients.
In addition, be cognizant of what social media platforms your clients typically use most often. If you primarily prepare taxes for individuals and families, you might want to focus your efforts on Facebook. If working with business owners is more of your specialty, LinkedIn might be a more suitable route.
How To Leverage Tax Preparer Software To Launch Your Tax Business
Thanks to technology, building a tax business today is easier than ever. Easier but not easy. It takes more than selecting software and hanging out a shingle to get your practice off the ground.In a recent installment of our Virtual Tax School webinar series, Anthony Sampson, EA – Solution Architect, and Lance Center, CPA – Solution Architect Manager, both with Wolters Kluwer Tax & Accounting, discussed how to start and grow your tax business, and how it all starts with building trust.
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Strategies For Quickly Expanding Your Business
Successfully scaling a business is all about doing the fundamentals and having the stamina to see it through.
Let’s face it. Scaling your business is hard. It takes considerable effort. In the beginning, it means wearing different hats. It means dealing with sales and . It means understanding taxes and corporate compliance. It involves having to interact with customers on a daily basis. And so much more. At the end of the day, it takes its toll on you.
If you’re struggling to grow your business, there is light at the end of the tunnel. Sure, it’s hard. But, what’s the alternative? A life-sucking 9-to-5 job? Surely not. Okay, maybe you’re longing for the security of a guaranteed paycheck. But, at what mental or emotional price will that come?
The truth? If you buckle down, clear your mind, and just look at things in perspective, you can easily identify ways you can grow your business and make more money quickly. While hundreds of business growth strategies likely exists, the following 15 will take your business to the next level quickly and efficiently.
Roland Frasier, a business growth strategist, has a unique approach to scaling businesses. As a principal of Digital Marketer and Native Commerce Media, and CEO of War Room Mastermind, he knows a thing or two about the online marketing world.
Launch Your New Services With These Ideas
Here are some additional strategies our experts use to grow the business services side of their firms.
- Become a trusted source of information. Dan writes a blog on business tax and financial issues and sends those posts to his clients via a subscriber list. He also uses customer relationship management software to target clients with information specific to their needs. If I see a tax issue come up in the state of Nebraska, for example, I can email those clients with that information, and they really appreciate it.
- Offer a free initial consultation.We get a lot of calls from people with small, or seemingly small, bookkeeping questions, Josh explained. If we can get those folks into the office, that one question often leads to a much larger business opportunity for us and a greater benefit to the client.
- Remember, every client you have is important.Whether theyre just starting up their Mary Kay or Pampered Chef business or they have a multimillion-dollar corporation, treat them all the same, Susan said. You never know which ones are going to take off.
Your focus is to save your clients money, and if you present yourself that way and communicate it to your clients, youll get more referrals and more business clients, Dan said.
If we treat clients the way we want to be treated, they will tell their friends and their friends friends, Josh added. Stick with it and sell service. You wont go wrong.
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How To Get Tax Clients For Your Tax Preparation Business
Tax preparation services thrive on repeat business, but that doesnt mean tax businesses dont need new clients. Rather, potential clients should be cultivated and nurtured throughout the year to ensure a steady flow of revenue during tax season and beyond.
But how do you get new tax clients? Thankfully, a variety of excellent resources exist to help tax preparation businesses like yours find qualified leads and nurture them until they become long-term clients.
In this guide, well show you how to get tax clients using some of todays most effective solutions. These include:
- Google My Business
Get Your Name Out There
If you’re like many individuals who have recently left a tax preparation franchise, you already know a lot about how to serve your clients’ needs. However, if you aren’t marketing yourself in an impactful way, you may find it difficult to gain traction in an already competitive industry.
The first step to attaining the awareness of potential clients is building a website. Nearly everyone searches for tax preparation services online, and it is vital that your name is visible to those in need of the services you offer.
Be genuine and straightforward in your explanation of your business model and your personal connection with your clients. People seek out and choose a CPA based not only on experience and licensure, but also on trustworthiness and an approachable, personable nature.
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