Is Starting a Freelance Tax Business Right for You?
Do you have dreams of ditching your corporate day job as a tax preparer or tax accountant and starting your own freelance tax preparation business? If you are a skilled tax professional you can start your own virtual tax preparation business, which means you can make a living working at home, setting your own hours, and living by your own rules. But before you get started, you need to make sure that starting a virtual tax business is a sound choice for you.
Get Your Mindset Right
As a freelance tax business owner there is a certain mindset you need to have if you want to be a successful freelancer. You are not just a worker, you are also a business owner. Like any CEO, you need to handle strategic planning, branding, scheduling, and everything else your business needs.
You also need to make your freelance tax business grow. Are you ready to handle all these tasks on your own? Do you feel energized when you think about managing your freelance tax business? This is the mindset you need to have to be a successful freelancer.
Is There a Market for What You Do?
You have a service to offer, but are people paying money for that service? One of the most important things to test first before you launch your virtual tax preparation business is the market. Is there an audience for your services?
Look around at freelancers offering accounting, bookkeeping, or tax preparation services. Follow them on social media. Join groups where people who offer this service are talking. You can learn a great deal by listening to their conversations and also learn important things like the going rate, tips and tricks to land more clients, or how to handle difficult clients.
The great news is that every business owner is mandated to pay taxes quarterly, annually, and for some, monthly. As well as individuals who work throughout the year must file taxes. There is always a need for a tax professional, especially for more complex taxes that automated software just cannot handle on its own.
Do You Have the Discipline to Start a Freelance Tax Preparation Business?
Working on your own as a freelancer means freedom. That is one of the main reasons people start their own business. But it also means you need to have the discipline and motivation to do it yourself without needing to be nudged by a boss or co-workers.
A good way to test this is to do a few small jobs before you launch your freelance tax business. Find a gig on a freelancer website or through your connections and ask them to be your pro-bono or beta client. Explain to them that you are wanting to start your own freelance tax business and that you will like to test out your strategy on a few people before you launch your tax office. This will give you some experience managing your time and meeting deadlines, as well as managing people.
Discipline is a muscle you can grow. A good way to build up this skill is to transition gradually from your regular job to freelancing, gradually taking on more work.
Can Your Finances Handle Starting a Freelance Tax Business?
There is a bit of financial risk involved in starting your own freelance tax business. There is a good chance you will not earn much money at first, and it will probably take some time before you are earning the income that you’re earn now.
There are two ways to handle this. One is to start doing some freelance tax work on the side while you keep your regular job. Once you have enough income through the tax services you offer, you can quit.
Another approach is to save money and make the leap. Save about 2-3 months of pay to hold you over until you start to earn enough through your freelance tax business.
It’s fine if you don’t have everything you need right now to start your business. As long as you are willing to learn a few new skills and cultivate the right mindset, you can make it as a freelane tax preparer.