Income and Salary Guide for Tax Preparers

Strategies for Tax Preparers to Increase Income and Grow Their Business

Introduction

The slow season for tax preparation businesses, spanning from May to December, can be a challenging period. Despite having robust financial knowledge, many tax preparers experience stress due to the lack of sustainable income during this time. Fortunately, there are various strategies to generate additional revenue and maximize your financial potential.

Salary Basics

How much do tax preparers typically make?

• The national average salary for a tax preparer in the U.S. is around $24,224.
• Salaries vary significantly, with entry-level positions at H&R Block earning about $18,992 and top earners bringing in approximately $41,000 annually.

Income Variations:

• Many tax preparers work independently, limiting their income to the number of clients they can personally serve.
• Over 50% of tax preparation firms have fewer than 10 employees, which can impact their ability to scale and increase earnings.

Incentivize Your Services

Expand your offerings to become a comprehensive financial guide and generate new income leads. Building on the trusted relationship with clients, tax preparers can offer additional services with the right training and licensure, such as:

• Auditing
• Bookkeeping
• Financial planning
• Credit repair services

Client Benefits:

• Clients will appreciate the convenience of a one-stop shop for their financial needs, reducing the hassle of explaining their finances to multiple advisors.

Additional Compensation

Boost your earnings with value-added services.

• Independent tax preparers receive an average of $730 from bonuses, tips, or commissions, but this income can be unreliable.

Strategies to Enhance Earnings:

• Offer services to help clients navigate the online E-file system, which is increasingly popular (only 9% of returns were filed on paper last year).

An Option with Longevity and Increased Revenue

Leverage your financial expertise to offer credit repair services.

• As a tax preparer, you already have deep insights into your clients' finances. By helping them with credit repair, you can provide valuable year-round support.

Benefits of Offering Credit Repair Services:

• Help clients improve their credit scores, leading to better loan rates and financial stability.
• Expand your service offerings, attract new clients, and increase your overall earnings.

Career Growth:

• Whether you're an independent tax preparer, work seasonally, or for a large firm, you can grow your client network and increase your salary by becoming a credit repair consultant or starting a credit repair business.

Conclusion

Maximize your salary as a tax preparer by diversifying your services and leveraging your financial knowledge.

Learn more: Discover how to grow your income and client base by offering additional services here.

By implementing these strategies, you can navigate the slow season more effectively and ensure a steady income year-round.