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Tax Prep Career Myths
20 July 2022
There are many misconceptions regarding tax specialists among the public. We adore math, it takes a long time to become one, and we're bored. These are untrue! We produced a blog post that debunks all the myths we've heard about tax preparers and what it takes to become one because it's time to reveal the truth about them and what it takes to become one.
Myth 1: To work as a tax professional, you must be a CPA or have a degree in accounting.
Many people avoid tax preparation because they believe it will be challenging and that you need to be a Certified Public Accountant (CPA), have a degree in accounting, or have the equivalent. To be a tax professional, you actually don't need to be an accountant. The ability to work with numbers is crucial, although advanced math and financial skills are not required. Why? because filing taxes is the law, not accounting. What you really need to get a firm foundation in individual tax is at least one tax preparation course. A 6-hour Annual Federal Tax Refresher Course (AFTR) with a 100- question competency test to certify your tax knowledge is also advised by the voluntary IRS Annual Filing Season Program (AFSP), along with some further ongoing education. Since tax regulations are subject to annual modification, keeping up with the most significant changes is simple.
Myth #2: Tax preparation is only for folks who like numbers.
It's remarkable how many people believe that filing taxes is all about math. It's actually a people business; it's not just about the statistics. While having the necessary information to file taxes effectively is crucial, your clients' experiences both during and after the preparation process are just as crucial. Dealing with a client's financial details makes the situation very intimate. Your client hopes you have their best interests in mind and trusts you to take good care of them. Because they view you as a leader in the tax sector, your client has come to you for advice. Even if you complete a client's tax return flawlessly, they could not return if you don't offer personalized care. Relationships are essential. So, if you like interacting with people, working in the tax industry could be quite lucrative. Building relationships and trust is the key to success.
Myth #3: To work as a tax professional, you must have graduated from college.
You already know that you don't need a college degree or to be a CPA to do taxes, but did you realize that either one is optional? All that is needed in terms of schooling is a high school diploma or the equivalent in real-world experience. While a college education is not required, you will need to be educated on tax law and preparation. The good news is that getting that only takes a few weeks, not four. Once you've mastered the fundamentals, you may start filing taxes for money as you improve your schooling and learn how to file more complex returns (which is more lucrative).
Myth #4: It may take years to learn tax preparation.
In as little as 10 weeks, you can complete our in-depth tax course. As we previously indicated, after you grasp the fundamentals, you can start making money by doing taxes for the general public. As a tax preparer, you can further your education from there.
Myth #5: Starting a new career as a tax expert is costly.
Less than $500 will buy you access to our complete tax course. More than that is required to attend school in order to pursue a career. A fairly affordable job option is tax preparation. For a trial run, you can even try out our free 3-day trial!
Myth #6: In order to quickly start a profitable tax preparation firm, you must invest in a pricey franchise.
Tax franchises are costly and limiting. Our Tax Courses, Guide to Start & Grow Your Own Successful Tax Business, and Tax Practice Management Manuals will give you the tools you need to be successful running your own independent tax business without having to pay high franchise fees, ongoing royalties, or be constrained in terms of innovation and geographic expansion.
Myth #7: In order to launch a career, you must first work for someone else.
Starting a career sometimes entails gathering experience through working for others. Regarding the tax preparation industry, that is untrue. You are prepared to begin your profession as soon as you acquire the necessary expertise and register with the IRS. As they say, "hang a shingle" and begin attracting customers! Starting with your friends and family is a terrific idea.
Myth #8: Filing taxes is tedious
From the outside, tax preparation may appear to be a dull job, but in practice, assisting others with their taxes can be extremely satisfying and fulfilling. Your clients have a lot of confidence in you as a tax expert. They confide in you with their most private financial and personal data. By educating people on tax laws and making the process simpler, you can turn the unpleasant duty of filing taxes into a pleasurable experience. Tax preparation is not at all boring if you enjoy working with others and solving difficulties.
Myth #9: The time of year for tax preparation
There is a "tax season," it is true, but that season is for filing individual taxes. If you learn to prepare business taxes, you will be preparing taxes for business owners on a quarterly basis. You can also look into becoming an Enrolled Agent (the top designation in the tax industry) and assist taxpayers with “Offer in Compromise” services. This is for people who may need to settle payments owed to the IRS. You can also offer auditing or IRS communication services for taxpayers who receive letters from the IRS and are not sure what to do. Another option to keep you busy year-round is to offer complementary services like bookkeeping or payroll for business clients
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Sha’Tonya “Rosie” Thomas
The Texas Tax Pro. She opened the doors to her very first tax office in Dallas, Texas back in 2009. The first tax office Rosie has turned into a powerful enterprise now known as Thomas Financial LLC. Till date, Rosie has coached 110 plus tax professionals, of which 56 of those now run their own successful tax office. These are the stats that have earned her the moniker “The Texas Tax Pro”.