People are learning how to start and operate an accounting business.There will always be a demand for accounting services. Why? Simply put, there will always be business taxes and there will always be personal taxes. Since 1990, the Internal Revenue Service (IRS) has processed 800 million tax returns electronically. As an accountant, you will be making sure that business taxes and personal taxes are filed accurately. You will analyze financial information from individuals and companies. Get ready to learn how to start this business with less than $2,000 and make at least $60,000 a year working part-time. The goal is to make $166 a day on average filing tax returns. It is not easy but if you follow the steps you will enjoy the rewards.
Things You’ll Need: Webwatcher
- Tax Accounting Software Program
- Tax Preparation for Training Individuals and Businesses
- Be good at Math, Reading and Writing
Step 1 Accounting Training and Education
Get started by obtaining basic information about accounting training and education. Visit the United States Department of Bureau Labor Statistics website to get a better idea of what will be expected from you in this profession. Contact several accounting business owners and ask them how they started their accounting practice. Write this information down so that you can use it later. Read the book “Starting and Building your own Accounting Business” by Jack Fox. Select an accounting software program that will help you start and operate your accounting business efficiently.
Step 2 Obtain a Business Accounting License
Take a trip to the city hall and apply for a license to start and operate an accounting business. Tell the clerk that you are going to perform tax preparation services for individuals and businesses at your home. Complete all the necessary paperwork and follow all the clerks instructions and be prepared to pay a fee. Contact your state’s department of revenue and apply for a state tax identification number. Call the IRS and register for a federal tax identification number. You need tax numbers to pay taxes.
Step 3 Develop an Accounting Business Plan
Develop an accounting business plan to help you start and operate an accounting business. Write the marketing section to show how you plan to bring in clients. Explain in the management section what activities are needed to run the small firm successfully each day. State clearly in the financial section how you are going to spend and manage the firm’s money. If you do not know how to write a business plan, hire someone to write the plan for you or you can visit the Small Business Administration’s (SBA) website for help at SBA.gov.
Step 4 Operating an Accounting Company
Keep in mind that everyone is a potential client as you begin to start and operate an accounting business. Make sure that you keep your business cards available for potential clients. Start your accounting company from home to keep expenses low or share the office space with professionals in a similar field. Be on time for all appointments and inform clients ahead of time if you are going to be late. Discuss your fees with all clients before you perform the service. It is very important that you learn how to use the computer accounting software program and deal with clients in a professional manner at all times.
Step 4 Accounting Licensure and Certifications
Improve your chances for success by becoming certified to help you start and operate an accounting business. There are many accounting associations that offer additional training to help you develop better accounting skills so take advantage of these opportunities. Do not forget to attend seminars and conferences about small business accounting and tax issues. The American Institute of Certified Public Accountants is an excellent place to start if you want to become a CPA. Take in as much information as you can about the profession and grow your accounting business.
Always be honest with clients
Join Accounting Associations
Learn the Generally Accepted Accounting Principles
Keep yourself updated on accounting rules and law
Make sure all clients have the proper identification
Never sign a return unless you are authorized to do this
National Association of State Boards of Accountancy
United States Bureau of Labor Statisitics
AACSB International- Association to Advance Collegiate Schools of Business
American Institute of Certified Public Accountants