You’ll be approaching tax season again before you know it. Maybe you’re interested in becoming one of the seasonal tax accountants. This type of service can be a great way to earn some extra money this tax season, but there are things that you’ll want to keep in mind as you build your business. Seasonal tax preparation accountants earn the majority of their income between January and April of each year. If you have strong math skills, a strong eye for detail and enjoy working with people one-on-one, this could be a great career move for you. Even though you’ll only be doing it for a shortened amount of time, you need to be sure that you’re protected. Professional liability insurance is something that you should look into before you get started on your business.
How to Build Your Business as a Seasonal Tax Preparation Accountant
Whether you choose it is a side hustle or a full-time gig, you need to pay attention to details to build your business as a seasonal tax preparation accountant.
Get the necessary training
While you don’t need to pass the rigorous accreditation exams like certified public accountants, you still need the training to be able to do your job correctly and build credibility. There are a few choices for both online and classroom courses that you can take. These are offered by national chains, such as Liberty Tax Service and Jackson Hewitt. If you find online courses, you can complete your training in your own time. This is a great option if get into tax preparation as either a new career or a side job. This allows you the flexibility to get your training done without needing to take off work.
Build your professional experience
After you acquire the necessary training, it’s time to put it into practice. Take some part-time work at a chain company to boost your knowledge and experience. Build invaluable skills so you know what to expect when you run your own business in the future. You can take what you learn and apply it directly when you begin your freelance work.
Acquire the appropriate software
In order to prepare taxes, you need to have the proper software. There are a variety of companies that offer this software, including Intuit and Tax Works. On average, you will need to pay about $600 to acquire the necessary software.
Buy insurance
Professional liability insurance, as well as errors and omission insurance, will be necessary to protecting yourself and your business. An insurance agent will be able to walk you through this process.
Find a space to conduct business and build your clientele
You may acquire office space to run your business. When you’re just starting out, you can offer your services to friends and family to help build your clientele. If you do a great job for them, they will recommend you to their friends. This is a great way to start out with your new business. Building a website should also be a priority.
Why You Need Professional Liability Insurance as a Seasonal Tax Accountant
Like any other job, there is risk involved when you prepare taxes for other people. Discover why you need to carry professional liability insurance as a seasonal tax accountant.
To protect yourself and your business
It’s important to have liability insurance even though you’re working seasonally. Even with the best training, mistakes can happen. Since you’re running your own business, you need to make sure to protect yourself and your business. A policy will help protect you from losing assets. You don’t want to enter into a new business only to end up losing your house or other large assets. You need to have this protection.
To avoid high court fees
Court fees can be expensive. Since you’re starting a new business, the last thing you want to happen is to lose all your profits or go further into debt. High fees can hurt your business.
To avoid losing your business
Being sued as you enter into this new business can be detrimental to your future plans. The high fees and possibility of the loss of assets could cause you to shut down your entire business. That’s a lot of time, effort, and money to lose due to a lack of preparation on your part. Not only that, you will have to start a new career path. By making sure you’re protected, you not only safeguard these assets but your future in this new career.
To protect yourself from errors
While working through the taxes of your clientele, it’s possible for you to miss something. Everyone makes mistakes and you need to protect yourself in the event that you do. There may be errors in things that you have no control over, such as financial statements, auditing activities, tax filings and embezzlement.
Start your new journey into the seasonal tax preparation world off right and obtain the necessary insurance. Consult with a professional to make sure that you’re covered as you move forward. Best of luck in your new career path!
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