May to December of each year is the dreaded slow season for tax preparation businesses. With robust financial knowledge, tax preparers make good money and have a great skill set that can be shared in diverse ways to make even more. Tax preparers at companies of every size can feel this stress and knowing other ways to generate sustainable income can be a real lifesaver.
Salary Basics
How much money does a tax preparer typically make? The national average salary for a tax preparer is $24,224 in the U.S. That is a nice average between a tax Preparer at H&R Block who has a salary of $18,992 and the those at the top of the pay scale who bring home around 41k a year.
The differences in this income scale can come from a number of factors. Most preparers work independently and are limited by how many clients they can personally serve. Over 50% have fewer than 10 employees and may have incomes bolstered by being able to take on a larger network of clients.
Incentivize your Service
Offering additional services will make a tax preparer a true financial guide and generate new income leads. Most clients see a tax preparer as a trusted advisor, not just a task manager.
Building on the trusted relationship with the right training and licensure, tax preparers can offer additional services such as:
- Auditing
- Bookkeeping
- building a financial plan
- Credit repair services
Re-explaining personal finances can be exhausting for clients so they will love the opportunity for a one-stop shop. Read more about the value of having your Credit Repair License here.
Additional Compensation
An independent tax preparer receives an average of $730 from bonuses, tips, or commissions. Yet, this income is not dependable. Providing a value added service can be another way to expand how much money you make as a tax preparer.
Many US taxpayers choose to use the E-file system that is offered by the IRS (only 9% of returns were filed on paper last year!). Harness this shift online because it is not going away.
Providing services to help clients navigate the online system as a part of your tax preparer business is another method to boost yearly pay.
Sound like a lot of work? Well, luckily all the work you’ve put into developing your financial knowledge as a tax preparer was half the battle!
An Option with Longevity and Increased Revenue
Tax preparers can leverage the financial savvy they already have to help existing tax clients with credit repair, too! You already spend hours looking at how clients spend money and use that data to file taxes. Give your current clients what they need throughout the year by offering help with their big-picture finances with credit repair services.
No matter if you are an independent tax preparer, work only seasonally, or work for a large firm, find out how you can simultaneously grow your current client network and earn a better salary by offering additional education and services by becoming a consultant or by starting a credit repair business.Want to know how to maximize your salary as a tax preparer? Read more here!
