Tax Preparer
Self-employed tax preparers can net big bucks year-round -- or have
a booming part-time career.
Tax preparers are number-crunching experts. These talented people take
our annual incomes, deductions and receipts and transform them into government-friendly
returns.
They can expertly wrangle their way around ever-changing tax laws, counsel
you on tax issues and help you find deductions you never knew you had. In
short, a tax preparer can be your best friend.
"Taxes, once you understand the logic of the system, [are] an easy puzzle
to solve," says tax preparer Eva Rosenberg.
"Once I stopped having to memorize useless numbers that change every year,
once I was able to work on how to use the code to my clients' advantage, it
became fun. I love challenges -- outwitting the government using their own
rules is a real kick."
In the United States, enrolled agents are the only tax professionals aside
from certified public accountants who can represent you in front of the Internal
Revenue Service.
Rosenberg, an enrolled agent, enjoys a glamorous clientele. "Many of my
clients are in the entertainment industry. Some as grunts, others as chief
executives at major studios," says Rosenberg.
This is one career that has education choices. Enrolled agent training
is one way to pursue a tax preparation career. According to Sharon Cranford,
director of government relations and public affairs for the National Association
of Enrolled Agents, there are approximately 35,000 enrolled agents worldwide.
However, there are many other ways you can learn your tax-wielding craft
-- from formal university training to short vocational courses.
Easy startup has one major downfall -- increased competition. Many people
combine tax preparation with bookkeeping services, or work only during tax
season, so it's hard to estimate the total number of tax-savvy folks. Plus,
preparers compete against affordable, do-it-yourself tax software.
However, with the right marketing plan and a powerful combination of smarts
and education, tax preparers can net a pretty penny.
What's one way to beat your competition? Find a unique, marketable niche
and go for it. Rosenberg has an information-packed website. She also gives
interviews on TV and radio shows and publishes various tax-related articles.
Although she enjoys success, tax preparation was not her first career choice.
"I resisted my father's efforts to get me to study bookkeeping and clerical
skills because I felt they would limit me to women's positions in the future,"
she says.
"I had read a Reader's Digest article when I was around 12 about the few
women who had achieved professional positions. Often, the men would toss them
the clerical work on the team and they would take the glory. I grew up knowing
I didn't want that to happen to me."
Rosenberg soon realized, despite her initial dislike of "women's positions,"
she had a marketable skill. She studied bookkeeping in college, discovering
her natural affinity for numbers. Then, fate stepped in.
"Upon graduation, my first full-time, permanent job was with a national
CPA firm. They offered me a job starting on January 2, and I was told to know
how to do taxes by that date. So, I took out my textbooks and, after falling
asleep often, I mastered enough to be able to start the job. The rest is history."
Soon, Rosenberg hankered to be her own boss. She knew that fledgling entrepreneurs
need to hustle hard for valuable clients (and cash). "I quit my job and got
part-time work to cover living expenses. Then I ran an ad in our community
association's newsletter and one in the local, small-town newspaper, and joined
lots of women's networking groups. It started slowly.
"But by the second year, I had learned about press releases. So I started
to organize small workshops for people who wanted to file their own returns.
I sent out press releases and got them picked up in several newspapers. Pretty
soon, I had a base of clients and they started referring their friends."
Today, Rosenberg enjoys national clients who drive hundreds of miles for
her tax expertise. "Returns are mailed in to my office from all over the country.
We take phone calls. We help people out with their personal problems, their
tax problems, investment issues, and generally have a grand time," Rosenberg
says with a laugh.
She prides herself on her knowledgeable service and thrilled clients. "I
do a good job. No, I do a great job! My clients tell their friends. All my
clients come from referrals. And I treat my clients like warm friends."
Don't expect that reading a tax book will make you an expert. Skittery
clients need to know you're an experienced, tax-savvy professional. "If you
want to sell your services to the public, you need some education. At least
take a basic tax course," warns tax preparer Kirsten Simpson.
It will cost you around $5,000 to set up your office, plus additional funds
for training and supplies, but you'll finally have the freedom to be your
own boss.
"Being self-employed, I get to pick the clients. I only keep people who
I really like and respect. The rest I either send away or refer to others.
I have met the most wonderful, unusual and interesting people," says Rosenberg.
Now that's one non-taxable benefit that's worth its weight in gold.
Links
National Association of Enrolled Agents
An organization of tax experts
Internal Revenue Service
Learn the latest U.S. rules and regulations
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