9 Steps to Make Your TAX Practice A Success

By root_jvvzcp9r Canada Revenue Agency

Tax Preparation industry is full of opportunities for anyone wanting to start their own practice.
With your own tax preparation business, you can make it a successful venture by acquiring skills with FinTech College income tax certificate courses.
We offer courses for Tax filing for individuals, newcomers to Canada, International Students, UBER Drivers tax filing, IT consultants tax filing, Trucking businesses tax filing, Sole Proprietorship and Self Employed tax filing, Income Tax filing for Corporations and Sales Tax for any business.

Building a Tax Practice. From setup to marketing, this guide, is for the tax preparer looking to start their own practice and make it a success.

1. Learn about Canadian Taxes

Online learning has revolutionized education, providing accessible and flexible options for students worldwide. Here are some of the key benefits of enrolling in online bookkeeping courses at Fintech College:

  • Many people mistakenly believe that doing taxes requires an accounting degree or another type of educational achievement.
  • The CRA doesn’t require specific training or licenses to be qualified to do federal income tax return preparation services.
  • However, it’s important for tax preparers to understand the Canadian taxes and consider enrolling in a course to advance their knowledge if they’re not already an experienced tax preparer.

2. Setup Your Business

Think carefully about the business entity type you choose for your tax preparation operation.

When you start a business, it can be structured in 3 ways:

 

  1. Sole proprietor – A sole-proprietorship has one owner who has unlimited liability for the business
      • Single business owner
      • Unlimited liability

2. Partnership – A partnership involves two or more people who combine resources for the business and share profits and losses.

      • 2 or more co-owners
      • Liability split among owners

3. Incorporation – A corporation is considered to be a separate legal entity from its shareholders.

      • Separate legal entity
      • Limited liability

3. Apply for EFILE number from CRA

What is EFILE?

What is RepID?

EFILE Help Desk Support

EFILE Contact Number

  • 1-800-361-6283

4. Get trained to Become a TAX Preparer

  • Knowing the tax laws in Canada is essential for you to serve your clients effectively.
  • Putting in the time and effort to hone your knowledge and skills will help you serve your clients better.
  • Practical hands-on, with live instructor led training can bridge the gap between theory and practice.
  • No, you do not need to be a CPA to be a tax preparer in Canada. You can function as an independent tax consultant under a corporation or as a sole proprietor. But to be recognized as a public accounting service provider, you will need registration with CPA Canada and the provincial CPA body.

Earning a certificate from Fintech College provides numerous advantages:

  • Career Advancement: Certified bookkeepers are in high demand. A certificate can open doors to new job opportunities and higher salaries.
  • Credibility and Trust: A certificate demonstrates your commitment to professionalism and continuous learning, building trust with employers and clients.
  • Network Opportunities: Join a community of fellow learners and professionals, offering opportunities for networking and professional growth.

Our Income Tax training courses are perfectly crafted to acquire solid foundational knowledge. The courses are fully hands-on with live instructor led training and they come with our proprietary designed study material.

5. Get a Liability Insurance

  • As a tax preparer, you’re doing your best to stay up-to-date with Canada’s tax codes and working with your clients to provide the best service.
  • Because of the nature of this profession, it’s not uncommon for unintentional errors or omissions to slip by unnoticed, especially when it’s the busy tax season.
  • You must get professional liability insurance besides general insurance for your business.
  • Professional Liability Insurance (also called Errors & Omissions Insurance) covers you for those mistakes that go undetected.
  • With General Liability Insurance, you would be protected against third-party claims arising from bodily injury or property damage. This type of coverage would also protect you if you or an employee caused damage to a client’s home.
  • Familiarize yourself with preparer penalties, and gross negligence penalties.

6. Choose the Right Software

  • Your tax preparation software may be the single most important tool you have for your tax preparation business.
  • Switching software takes time, energy and money, so making sure you’ve found the right software before you switch is essential.
  • The choice between cloud and desktop-based software is often a matter of preference. Cloud-based software is good, however, you must check its availability. At times, the online or cloud-based software was not available for hours on the very last date of the tax filing deadline.
  • Make sure you put serious thought into your business’ needs, as this step is vital in choosing the appropriate tax software for business success.

7. Market Your Practice

No business should rely on the “build it and they will come” approach to acquiring customers. This applies to tax preparation businesses too. Consider these marketing and advertising assets and tactics for spreading the word about your business:

  • Obtain business cards: You can hand them out virtually wherever you go. Social events, Sports events, etc.. Canva.com will allow you to quickly design and print your new cards.
  • Create a Professional Website: It wouldn’t have to be big or complex. A simple one-page site can establish an online presence and give potential customers a way to learn more about your capabilities. WordPress.org or Wix.com will be great options for creating a quick DIY website
  • Set up social media business accounts: Social media accounts give potential customers another way to find and connect with you online. LinkedIn, being a professional-focused platform, may be especially beneficial. A Facebook page (not a personal profile) will also be incredibly helpful.
  • Set up Google Business Profile: A Google Business Profile feeds both Google local search and Google map results, so it is incredibly important for local searches.
  • Join a networking group: Active memberships in the local Chamber of Commerce, Rotary Club, etc. will help get the word out about you and your new business.

8. Who is my Potential Customer?

  • If you are already providing taxation practice, an existing customer is 12 times more likely to ask you to prepare their taxes again over a brand new prospect.
  • 79% of consumers say they’ll engage with an offer IF it’s been personalized to reflect previous interactions with the business
  • 78% of consumers said personally relevant content increases the likelihood that they’ll buy
  • It costs 6-7 times more to acquire a new customer than to retain an existing one

9. What Should I charge my Customers?

  • Most Tax Preparation Business go out of business because of two things:
      • If there Tax Preparation Fee are too low most will go out of business.
      • If the Tax Preparation Fees are too high the customers would either walk out or wouldn’t return.
  • While you do not have to be a CPA to prepare or file taxes, the training and expertise it requires to gain that credential, matters. Simply put, you’re a CPA, and you deserve a premium for your services.
  • When determining a fee structure, many tax preparers call other firms and ask for quotes. They use the average of those quotes to determine a fair and competitive price for their services.
  • When trying to structure fees, it’s important to set a minimum job value. By setting a minimum job value at, say, $150, you won’t get mired in lower-level work that you likely don’t want to take on.

Conclusion

Tax courses with certificates from Fintech College offer a valuable pathway to enhance your career. With flexible learning options, comprehensive curriculum, and recognized certification, you can gain the skills and credentials needed to succeed in the competitive field of taxation. Start your journey today with Fintech College and unlock your potential.

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