One of the main questions that people have about this career is what is the tax preparer salary? If you are thinking about this as well you may want to know: is there a big difference in the amount some companies pay for this position as opposed to others? And while we are on the subject, does a certified tax preparer make more than someone with tax preparer certification?
What Determines the Tax Preparer Salary?
Without a doubt, now that tax preparer certification is required by the IRS this will define not only how much your tax preparer salary will be, but if you are able to work at all in this field.
A person fresh out of any of the accounting certificate programs will usually look to a major firm like H&R Block, TaxCut or Turbotax online. Unfortunately, many individuals are not exactly thrilled with the tax preparer salary paid by these companies which can start at the minimum wage to $10 per hour. However they provide newcomers to the field with valuable real life experience. For seasonal tax preparers the annual income averages out to $5-10K.
On the other hand, if you have an accounting background and are employed by these companies you are in a position to have a much higher tax preparer salary from the beginning. Experienced individuals working as tax planners or consultant for a major corporation can easily make a tax preparer salary of more than $100,000 per year.
What Skills Can Increase Your Tax Preparer Salary?
Besides accounting certificate programs, probably the best way to increase your tax preparer salary is with a Masters degree and by having a firm understanding of accounting software. Since more individuals are using these software programs to keep their financial records, many of the tax preparation software programs such as TaxWare make it very easy to import a client’s information and get the job done.
After they have some experience of preparing taxes for a variety of clients, many tax preparers decide to hang out their shingle from their home office. Then once they have established themselves with a sustainable tax preparer salary, they are in a position to expand by leasing office space. If this is your ultimate objective, taking small business management courses or having an MBA is highly advisable.
In addition, pursuing advanced finance certifications will expand both your credibility and business visibility in your community. To get your business off to a good start, it’s wise to create a business plan even if you know the tax preparation business inside out. Be thorough in your research for projections of your tax preparer salary regardless of how much experience you have.
This will assist you to forecast revenue, establish your break-even point which is vital to planning your marketing efforts and operational decisions. A business plan will help you to set a realistic target for your gross revenue the first, second and third year you are in business. But be conservative in your estimates; this field is highly competitive and it takes some time to become established in the marketplace. Your tax preparer salary is directly linked to the number of returns you prepare: the type of client you prepare them for also plays a huge role.
If you require more information, please visit the following sites that are authorities in this topic...
tax preparer license
accounting certificate of completion