Are you looking to change your careers because you want something more rewarding and challenging? If so, tax preparation might be a great option.
It’s a great way to help individuals and businesses navigate the complex world of taxes.
However, getting started in this field can be incredibly overwhelming because you have to learn a lot of things and start a business or find a job at the same time.
So, if you want to get into tax, here are some tips to help you successfully break into the tax preparation field.
1. Consider Tax Preparer Training Courses
One of the first steps in becoming a tax preparer is getting the right education. While you don’t need a degree to start preparing taxes, taking tax preparer training courses can provide you with a solid foundation. These courses teach you essential tax laws, how to complete tax returns, and valuable software skills that are crucial in today’s market.
Many community colleges and online platforms offer these courses. Look for programs that are accredited and have a good reputation. By enrolling in these courses, you can build your confidence and expertise, making it easier to attract clients once you’re ready to start working.
2. Get Familiar with Tax Software
Once you have completed your training, it’s important to get comfortable using tax software. Today, most tax preparation is done digitally, so knowing how to use these tools is vital.
Take some time to familiarize yourself with these programs. Many offer free trials or have online tutorials that can help you learn their features. Knowing how to navigate these tools will not only speed up your work but will also impress potential clients who are looking for efficient service.
3. Understand the Different Types of Taxes
The tax system is complex, with various types of taxes that individuals and businesses may encounter. Familiarizing yourself with personal income tax, corporate tax, sales tax, and property tax can set you apart as a knowledgeable preparer. Each type of tax has its own rules and regulations, so understanding these differences is crucial.
Consider dedicating time to research and study the basics of each tax type. The more you know, the more valuable you’ll be to your clients. Additionally, staying up-to-date with changes in tax laws will keep your knowledge relevant and increase your credibility.
4. Gain Practical Experience
After gaining your education and understanding tax software, it’s time to gain hands-on experience. You can start by volunteering at community organizations that help low-income families with tax preparation. Many non-profit organizations participate in the Volunteer Income Tax Assistance (VITA) program, which trains volunteers to assist taxpayers.
This experience will not only help you apply what you’ve learned but will also allow you to meet people in the industry and build a network. Plus, working with clients in real-life situations will enhance your skills and give you a better idea of what to expect when you start your practice.
5. Get Certified
While it’s not required to be certified to prepare taxes, obtaining a certification can significantly boost your credibility and marketability. The most recognized certification is the Enrolled Agent (EA) designation, which allows you to represent taxpayers before the IRS. To become an EA, you must pass a comprehensive exam that covers all aspects of the tax code.
Alternatively, you can consider becoming a Certified Public Accountant (CPA) if you’re willing to invest more time and effort into your education.