business plan tax preparation service

Tax Preparation Business Plan Template

Written by Dave Lavinsky

Tax Preparation Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their tax preparation companies.

If you’re unfamiliar with creating a tax preparation business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a tax preparation business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Tax Preparation Business Plan?

A business plan provides a snapshot of your tax preparation business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Tax Prep Business

If you’re looking to start a tax preparation business or grow your existing tax preparation company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your tax preparation business to improve your chances of success. Your tax preparation business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Tax Preparation Businesses

With regards to funding, the main sources of funding for a tax preparation business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for tax preparation companies.

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How to write a business plan for a tax preparation business.

If you want to start a tax preparation business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your tax preparation business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of tax preparation business you are running and the status. For example, are you a startup, do you have a tax preparation business that you would like to grow, or are you operating a chain of tax preparation businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the tax preparation industry.
• Discuss the type of tax preparation business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of tax preparation business you are operating.

For example, you might specialize in one of the following types of tax preparation businesses:

• Certified Public Accountant (CPA): This type of tax preparation professional is someone who is licensed to provide an array of accounting services. CPAs can represent their clients in a variety of tax matters such as audits, collections, and appeals with the IRS.
• Tax Attorney: This type of tax preparation professional is licensed to practice law. Tax attorneys can prepare tax returns, and provide clients with tax planning services.
• Enrolled Agent (EA): This type of tax preparation professional is licensed by the IRS and trained in federal taxes. This type of tax preparation professional can represent both business and individual clients.

In addition to explaining the type of tax preparation business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of tax issues resolved with positive outcomes, and reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the tax preparation industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the tax preparation industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your tax preparation business plan:

• How big is the tax preparation industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your tax preparation business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your tax preparation business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of tax preparation business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other tax preparation businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of professionals licensed to perform tax preparation services, do-it-yourself tax software such as TurboTax, or an in-house accountant. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of tax preparation business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for clients to acquire your services?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a tax preparation business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of tax preparation company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide tax preparation, IRS representation, or appeals services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Place : Place refers to the site of your tax preparation company. Document where your company is situated and mention how the site will impact your success. For example, is your tax preparation business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your tax preparation marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your tax preparation business, including answering calls, planning and providing consultations, billing clients and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your tax preparation business to a new city.  

Management Team

To demonstrate your tax preparation business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing tax preparation businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a tax preparation business or successfully running a small CPA firm.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you charge by the hour and will you offer a discount for repeat clients? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your tax preparation business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a tax preparation business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a copy of your state license.  

Writing a business plan for your tax preparation business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the tax preparation industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful tax preparation business.  

Tax Preparation Business Plan FAQs

What is the easiest way to complete my tax preparation business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your tax preparation business plan.

How Do You Start a Tax Preparation Business?

Starting a tax preparation business is easy with these 14 steps:

• Choose the Name for Your Tax Preparation Business
• Create Your Tax Preparation Business Plan
• Choose the Legal Structure for Your Tax Preparation Business
• Secure Startup Funding for Tax Preparation Business (If Needed)
• Secure a Location for Your Business
• Register Your Tax Preparation Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Tax Preparation Business
• Buy or Lease the Right Tax Preparation Business Equipment
• Develop Your Tax Preparation Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Tax Preparation Business
• Open for Business

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan writer can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Tax Business Plan Template: Everything You Need to Know

Its a strategy for all aspects of your business. It is a necessity for those looking to start a tax preparation or tax consulting business. 3 min read updated on February 01, 2023

A tax business plan template is a strategy for all aspects of your business. It is a necessity for those looking to start a tax preparation or tax consulting business. A tax preparation business assists individuals and small businesses to prepare and file their taxes correctly and accurately. There are several advantages to choosing a tax preparation business:

• There is little initial investment compared to most other businesses. A tax preparation business can even be started with $500 or less.
• Tax preparation is a flexible business that can be done on a part-time basis and allows for the flexibility to work around family and other obligations. This is a great business venture for stay-at-home parents.
• Tax preparation and consultation services are in demand by small businesses that don't have a full-time accountant. These businesses are able to pay for your expertise only when they need it the most.
• As a tax consultant, earnings can be $100-$200 per month, depending on your expertise.

The first step in determining if a tax business is the right choice for you is to complete research to determine the feasibility. Research is a way to learn important things about the business that will be helpful in your success. This will help you determine if this is the right business for you, and what type of business you should create.

This information gathering will assist you in preparing a tax business plan template. A tax preparation business service plan can include several different parts consisting of a business overview, strategy, marketing, accounting, services, and all aspects of the business. Before you start your business, make sure you consider how to form a solid business plan.

Sample Tax Preparation Service Business Plan

Business overview/products and services/mission statement.

• The company is a financial consulting firm specializing in tax preparation of all types- income tax compilation and returns, tax preparation, financial services, and standard, basic and full-service income tax preparation.
• The employees will be professionals in the financial consulting services industry whose ethics and values align with those of the company.
• The company and employees will be held accountable to meet their clients' needs and will create a working environment focused on sustainable living and community involvement.
• The brand goal is to become the top tax preparation service in the city and among the top tax preparation businesses in the United States within 20 years.
• The tax consulting firm will offer many services within the scope of tax preparation services, tax consulting, and tax-related financial products. The primary clients will be individuals, start of corporations, and established corporations looking to outsource tax preparation.

SWOT Analysis/ Market Analysis/Accounting Plan

• Strength- Our strength lies in our employees who are professional, well-trained, and do what it takes to ensure that our clients get a great value.
• Weakness- As a new company, it will take time to gain respect and acceptance in the community. We also do not yet have the cash flow for expensive marketing efforts.
• Opportunities- There are many opportunities for a tax preparation services company in the community. Individuals and companies both large and small need to use tax preparation services to ensure they are reporting accurately and to save them money.
• Threats- Other similar financial services firms in the area will cause a threat, as well as the existence of certain government policies regarding taxes. Neither of these threats can be reduced or eliminated.
• Financial services and tax preparation is a large industry with the potential to serve many individuals and businesses in need of these services.
• Many small businesses and mom and pop shops don't have the financial capacity to hire a full-time accountant but find it cost effective and less stressful to use tax preparation services and financial consulting services to ensure that everything is handled correctly.
• The target market is anyone who needs tax preparation services and is not restricted to any particular demographic groups. This also includes businesses of any size.
• Competitive advantage- the competitive advantage depends on the location of the business and if it is possible to create a unique angle in which to market your business in that locale, such as offering related services

It is possible to start a successful tax preparation business in just a few days with appropriate research and resources. Training is important, and a degree in an accounting or financial field will put you at an advantage. Make sure to complete state requirements, such as registering your new business.

For more information on tax business plan templates or legal requirements, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Tax Preparation Business Plan Template

Written by Dave Lavinsky

Tax Preparation Business Plan

You’ve come to the right place to create your Tax Preparation business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Tax Preparation businesses.

Below is a template to help you create each section of your Tax Preparation business plan.

Executive Summary

Business overview.

Denver Tax Services, Inc. is a new tax preparation company located in downtown Denver, Colorado. We help businesses and residents prepare their taxes and are trained to provide guidance and help for a variety of tax situations. We offer the best customer service in the industry and have a guarantee of accuracy or your money back. Clients who work with us will feel supported during every step of the tax prep and filing process.

Denver Tax Services, Inc. is run by Robert Schwartz. Robert is a certified tax professional and has decades of tax preparation experience under his belt. He has worked for several other firms (including H&R Block) and has provided his services to thousands of clients. His experience and professionalism has gained him a loyal clientbase. The combination of Robert’s expertise, experience, and clientbase will ensure that Denver Tax Services, Inc. is a success.

Product Offering

Denver Tax Services, Inc. provides guidance and support through every step of the tax preparation process. We help individuals and businesses get the maximum refund possible and file their taxes on their behalf. In addition to our tax preparation services, we also provide tax planning, business consulting, estate and trust tax preparation, audit support, and IRS representation services.

Customer Focus

Denver Tax Services, Inc. will help individuals and businesses located within 20 miles of the Denver area. We expect that most of the businesses that utilize our services will be small businesses that have less than 1,000 employees and earn less than $10 million in revenue per year. Most individuals who seek out our services will be middle class or affluent in order to have the disposable income to pay for our services.

Management Team

Denver Tax Services, Inc.’s most valuable asset is the expertise and experience of its founder, Robert Schwartz. Robert has been a certified tax professional for the past 20 years. Throughout his career, he has developed a loyal client base, with many clients having stated that they will switch to Denver Tax Services, Inc. once the company is established and running. Robert’s combination of skills, tax knowledge, and loyal following will ensure that Denver Tax Services, Inc. is a successful firm.

Success Factors

Denver Tax Services, Inc. will be able to achieve success by offering the following competitive advantages:

• Robert Schwartz already has a clientbase from his twenty years of experience working with other tax firms. This clientbase will help the company grow with their repeat business and by referring their friends and loved ones to our services.
• The company will emphasize providing client-focused service so that our clients feel valued.
• The company will provide our tax preparation services at a more affordable rate than the competition.

Financial Highlights

Denver Tax Services, Inc. is currently seeking $400,000 to launch. The funding will be dedicated to the office build out, purchase of initial equipment, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

• Office design/build: $100,000
• Office equipment, supplies, and materials: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $50,000
• Working capital: $50,000

The following graph below outlines the pro forma financial projections for Denver Tax Services, Inc.

Company Overview

Who is denver tax services, inc..

Denver Tax Services, Inc. helps the businesses and residents of Denver, Colorado with tax preparation and filing. We thoroughly analyze our clients’ tax situations to minimize their taxes and get them the biggest refund possible. We offer a guarantee of accuracy and will refund the fee for our services if our clients are not satisfied.

  In addition to helping our clients with tax preparation and filing, we also provide a suite of other tax services, including tax planning, audit support, and IRS representation. We don’t want to just help our clients out during tax time. We want to support our clients throughout the year so they don’t get any surprises come April 15th.

Denver Tax Services, Inc. is run by Robert Schwartz. Robert has decades of tax prep experience and has gained a loyal clientbase from providing his services through competing firms. After working for several tax prep firms around town, he surveyed his clientbase to see if they would be willing to switch to his new company once launched. Most of his clients responded positively, which motivated Robert to finally launch his business.

Denver Tax Services, Inc.’s History

Upon surveying his clientbase and finding a potential office, Robert Schwartz incorporated Denver Tax Services, Inc. as an S-Corporation in July 2023.

The business is currently being run out of Robert’s home office, but once the lease on Denver Tax Services, Inc.’s office location is finalized, all operations will be run from there.

Since incorporation, Denver Tax Services, Inc. has achieved the following milestones:

• Found an office space and signed Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Hired an interior designer for the decor and furniture layout
• Determined equipment and fixture requirements
• Began recruiting key employees

Denver Tax Services, Inc.’s Services

Denver Tax Services, Inc.’s mission is to maximize the tax refunds of all of our clients. To do this, we help our clients through every step of the tax return process and analyze every situation to make sure each client is getting as many deductions as possible. We help our clients minimize their taxes as much as possible during tax time and provide guidance on how to minimize taxes for the following year.

In addition to tax preparation and filing, we also provide the following services:

• Tax planning
• Business consulting
• Estate and trust tax preparation
• Audit support
• IRS representation

Industry Analysis

Taxes are one of the few certainties in life. However, tax time can be one of the most confusing and stressful times of the year for Americans. As such, many Americans seek out tax preparation software or tax professionals to help them with their tax returns every year. Due to tax law becoming increasingly complicated, the tax preparation industry has become an essential industry for the American economy. As such, the industry is expected to thrive for the foreseeable future.

The tax preparation industry helps citizens and businesses make sense of their tax returns to minimize their taxes and maximize their deductions. These professionals go through every applicable tax form and ask about every possible situation to ensure that customers are getting the biggest refund possible. In addition to tax preparation and filing, these companies also provide a full suite of other tax services, such as planning, consultation, and audit support.

According to IBIS World, the tax preparation industry has been growing steadily at a CAGR of 4.3% for the past several years. The demand for these services only continues to grow as tax law becomes more complicated. Therefore, this growth is expected to continue, meaning that Denver Tax Services, Inc. can expect to be successful in the following years.

Customer Analysis

Demographic profile of target market, customer segmentation.

Denver Tax Services, Inc. will primarily target the following customer profiles:

• Small and medium-sized businesses
• Middle class residents and families
• Affluent residents and families

Competitive Analysis

Direct and indirect competitors.

Denver Tax Services, Inc. will face competition from other companies with similar business profiles. A description of each competitor company is below.

H&R Block

H&R Block has been a king in the tax prep industry for several decades. With thousands of locations around the country and thousands of professionals available online, customers of H&R Block can get the tax prep and guidance they need with ease. H&R Block offers software and online tax prep services but also has in person services for those who would rather work with a professional. H&R Block has several offices in the Denver area, so we expect them to be a major competitor.

TurboTax is the most popular tax preparation service in the market. TurboTax provides easy- to-use software so the average American can file their taxes with ease. For those that have more complicated tax situations, TurboTax also offers consultations with tax professionals for an additional fee. Whether customers are doing their taxes on their own or with a professional, TurboTax provides all the support they need to make tax filing a smooth process.

Though TurboTax will continue to be popular, the company’s reputation has tarnished in recent years. The company has been sued several times for misleading their customers and lying about their pricing. These practices have made TurboTax untrustworthy. As such, many former customers of TurboTax will be eager to get the help of a local and reputable tax professional such as those that work for Denver Tax Services, Inc.

Jackson Hewitt

Jackson Hewitt is another major competitor that has prepared and filed millions of tax returns during their 40 year tenure. Like H&R Block, they offer both online and in person tax services to create the most convenient experience possible for their clients. They are well regarded for their refund guarantee as well as their professionalism and customer service. As such, they will be another major competitor for Denver Tax Services, Inc.

Competitive Advantage

Denver Tax Services, Inc. will be able to offer the following advantages over the competition:

• Client-oriented service : Denver Tax Services, Inc. will put a focus on customer service and maintaining long-term relationships. We aim to be the best tax preparation firm in the area by catering to our customer’s needs and developing a strong connection with them.
• Management : Robert has been extremely successful working in the tax preparation sector and will be able to use his previous experience to help his clients better than the competition.
• Competitive pricing : Denver Tax Services Inc.’s pricing is more affordable than our competitors.
• Relationships : Having lived in the community for 20 years, Robert Schwartz knows many of the local leaders, newspapers and other influencers. As such, it will be relatively easy to build a large clientbase over the next several years.

Marketing Plan

Brand & value proposition.

Denver Tax Services, Inc. will offer a unique value proposition to its clientele:

• Client-focused tax prep services, where the company’s interests are aligned with the customer
• Service built on long-term relationships
• Big-firm expertise in a small-firm environment

Promotions Strategy

The promotions strategy for Denver Tax Services, Inc. is as follows:

Targeted Cold Calls

Denver Tax Services, Inc. will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used, targeting individuals in areas and occupations that are most likely to need tax prep services. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.

Denver Tax Services, Inc. understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses and individuals by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

Denver Tax Services, Inc. will invest heavily in a social media advertising campaign. The company will create social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO

Denver Tax Services, Inc. will invest heavily in developing a professional website that displays all of the company’s services. It will also invest heavily in SEO so that the firm’s website will appear at the top of search engine results.

Denver Tax Services, Inc.’s fees will be moderate and competitive so clients feel they are receiving great value when utilizing our tax prep services.

Operations Plan

The following will be the operations plan for Denver Tax Services, Inc. Operation Functions:

• Robert Schwartz will be the Owner of Denver Tax Services, Inc.. In addition to providing tax prep services, he will also manage the general operations of the business.
• Robert Schwartz is joined by a full-time administrative assistant, Rebecca Hackett, who will take charge of the administrative tasks for the company. She will also be available to answer client questions and will be the primary employee in charge of client communications.
• As the company builds its client base, Robert will hire more tax professionals to provide the company’s services, attract more clients, and grow our business further.

Milestones:

Denver Tax Services, Inc. will have the following milestones completed in the next six months.

• 9/2023 Finalize lease agreement
• 10/2023 Design and build out Denver Tax Services, Inc.
• 11/2023 Hire and train initial staff
• 12/2023 Kickoff of promotional campaign
• 1/2024 Launch Denver Tax Services, Inc.
• 2/2024 Reach break-even

Denver Tax Services, Inc.’s most valuable asset is the expertise and experience of its founder, Robert Schwartz. Robert has been a certified tax professional for the past 20 years and gained his experience and clientbase by working for competing firms. After years of working with large firms (such as H&R Block), Robert decided he wanted to run his own tax prep firm where he can provide quality services in a small firm environment. He surveyed his clientbase and found that many clients would be willing to transition to his business once established. Robert’s combination of skills, tax knowledge, and loyal clientbase will ensure that Denver Tax Services, Inc. is a successful firm.

Though he has never run his own business, Robert Schwartz has worked as a tax professional long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He also already has a starting client base that he served while working for other tax prep firms. He will hire several other employees who can help him run the aspects of the business that he is unfamiliar with.

Financial Plan

Key revenue & costs.

Denver Tax Services, Inc.’s revenues will primarily come from charging clients for the tax preparation services we provide. We will charge our clients an hourly rate that will vary depending on the type of tax return they are filing. Clients who owe money on their tax return will be charged directly for our services. Clients who are expecting a refund have the option to either pay us directly or let us take the fee from their refund.

The notable cost drivers for the company will include labor expenses, overhead, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of clients per year:
• Year 4: 100
• Year 5: 140
• Annual Rent: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, tax preparation business plan faqs, what is a tax preparation business plan.

A tax preparation business plan is a plan to start and/or grow your tax preparation business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Tax Preparation business plan using our Tax Preparation Business Plan Template here .

What are the Main Types of Tax Preparation Businesses? 

There are a number of different kinds of tax preparation businesses , some examples include: Certified Public Accountant (CPA), Tax Attorney, and Enrolled Agent (EA).

How Do You Get Funding for Your Tax Preparation Business Plan?

Tax Preparation businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Tax Preparation Business?

Starting a tax preparation business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Tax Preparation Business Plan - The first step in starting a business is to create a detailed tax preparation business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your tax preparation business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your tax preparation business is in compliance with local laws.

3. Register Your Tax Preparation Business - Once you have chosen a legal structure, the next step is to register your tax preparation business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your tax preparation business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Tax Preparation Equipment & Supplies - In order to start your tax preparation business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your tax preparation business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

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Tax Preparation Business Plan

Tax preparation is a recession-proof business. No matter what happens to the economy, this business never goes off-trend. So starting a tax preparation business is an excellent choice.

Starting a business from scratch and standing up against big industry giants may feel overwhelming, but a detailed business plan can help you succeed.

Need help writing a business plan for your tax preparation business? You’re at the right place. Our tax preparation business plan template will help you get started.

Free Business Plan Template

Download our Free Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Tax Preparation Business Plan?

Writing a tax preparation business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

• This section may include the name of your tax preparation business, its location, when it was founded, the type of tax preparation business (E.g., franchise tax preparation services, enrolled agent firms, tax law firms.), etc.

Market opportunity:

Tax preparation services:.

• For instance, your services may include tax preparation, accounting, tax resolution and representation, tax planning, and tax consulting.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

• Franchise tax preparation services
• Independent tax preparation services
• Online tax preparation services
• Enrolled Agent (EA) firms
• Tax law firms
• Certified Public Accountant (CPA) firms
• Describe the legal structure of your tax preparation company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For example, if you are an independent tax preparation service provider, you might target busy individuals, self-employed professionals, retirees, new immigrants, and people with low and moderate incomes.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, the COVID-19 pandemic has accelerated the trend toward remote and hybrid work in the tax preparation industry, so you may need to explain how you plan to handle your remote team.

Regulatory environment:

Here are a few tips for writing the market analysis section of your tax consultant business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe the tax preparation services your business will offer. This list may include services like,

• Preparation of federal, state, and local tax returns
• Review of tax documents
• Electronic filing
• Tax planning
• Audit assistance
• Tax resolution services

Describe each service:

• Tax resolution processes, for instance, include consultation, investigation, strategy development, negotiation, resolution, and ongoing compliance.

Quality measures:

• This may include,
• Regular training and education for staff
• Thorough review and quality control processes to ensure accuracy
• Compliance with all relevant laws and regulations governing tax preparation services, etc.

Additional services:

In short, this section of your tax preparation plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, personal attention, year-round services, niche specialization, and commitment to excellence could be some of the great USPs for a professional tax preparation company.

Pricing strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your tax preparation business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your tax preparation business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, esoftware & technology:.

• Explain how these software and technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your tax preparation business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

• It should include key executives, senior management, and other department managers (e.g., Tax manager, Accounting manager.) involved in the business operations, including their education, professional background, and any relevant experience in the taxation industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your tax preparation services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the taxation industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your tax preparation company business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample tax preparation business plan will provide an idea for writing a successful tax preparation plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our tax preparation business plan pdf .

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Frequently asked questions, why do you need a tax preparation business plan.

A business plan is an essential tool for anyone looking to start or run a successful tax preparation business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your tax preparation company.

How to get funding for your tax preparation business?

There are several ways to get funding for your tax preparation business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your tax preparation business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your tax preparation business plan and outline your vision as you have in your mind.

What is the easiest way to write your tax preparation business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any tax preparation business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to Start a Tax Preparation Business

As the owner of a tax preparation business, you’ll have the responsibility of cutting through the fog of federal, state, and local tax preparation, filing returns, and often earning tax rebates for individuals and, perhaps, small businesses.

Learn how to start your own Tax Preparation Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a tax preparation business by following these 10 steps:

• Plan your Tax Preparation Business
• Form your Tax Preparation Business into a Legal Entity
• Register your Tax Preparation Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Tax Preparation Business
• Get the Necessary Permits & Licenses for your Tax Preparation Business
• Get Tax Preparation Business Insurance
• Define your Tax Preparation Business Brand
• Create your Tax Preparation Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your tax preparation business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Tax Preparation Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your tax preparation business?

Business name generator, what are the costs involved in opening a tax preparation business.

You can start your tax prep business relatively modestly, but there are some unavoidable costs to consider:

Office rent—zero to $1,500 or more. This is a business that you can run from your home, but you must consider if that would be a smart move. First check to make sure your neighborhood is zoned for seeing clients (hopefully a lot of them over the course of a few months) from your residence. Also keep in mind that a storefront office in a part of town with good traffic can act as a billboard and encourage walk-in trade. This might be especially important when you start out. As for the cost of office space, that can vary dramatically from region to region and even from one part of town to another. Look for space that has been empty for awhile and a landlord who might be motivated to get some cash flow to the building for a short lease period of perhaps only three or four months rather than watch the space sit idle.

Business cards, logo and signage—$1,000 or less. If you’re operating out of your home, signage might not even be allowed. But anytime you are able to hang a sign, it will serve as a free billboard and encourage impulse walk-ins. Your logo and business cards can be designed inexpensively if you find a talented graphic design student trying to build a portfolio.

Office equipment and automation—$2,000, est. or more. Even if you’re working out of your home, you want your business to look as professional as possible. That means you should have an office desk and a comforable chair for yourself and as many as two for clients. You’ll also need at least one laptop and printer, or a computer for every employee.

Tax preparation software—$400-$500. There are various vendors depending on your needs.

Legal, licensure and insurance—2,000 est. You must first pass a 60-hour tax prep training course that can cost in the $500-$600 range, depending on where it’s taken. There are additional costs from the IRS and for liability insurance. Furthermore, a few states require additional regulatory adherence.  Visit here for an explanation of some of the training costs and requirements .

Employee costs—Vary. Some of the leading competitors pay individual tax preparers as little as $10 an hour. Others pay a commission of perhaps 20 percent of the fees generated. You’ll also be responsible for tax withholdings and your FICA and Medicare contribution for each hire.

What are the ongoing expenses for a tax preparation business?

If you have a temporary storefront, rent and utilities will be among your largest fixed costs. Temporary employees will also cost you either an hourly rate or a percentage of the business they handle. Other costs might include advertising if you’re looking for a sudden uptick in business.

Who is the target market?

Who will your typical clients be? You might mostly see lower-income earners filing to receive their earned income tax credit. Or more complicated cases from the self-employed or smaller businesses. Or the middle class, who aim to take advantage of various tax credits. Making this decision will help you determine where you might open a storefront, how and where you might market your business and what specific skills you must master.

How does a tax preparation business make money?

You’ll charge a fee for your services, based on the complexity and time involvement of the filing.

According to a National Society of Accountants survey  released in 2017, the average fee charged by tax preparers for an individual itemized 1040 return with a Schedule A form and state tax return was $273. For small business clients, the average charge was $457.

How much profit can a tax preparation business make?

Error-free speed is of the essence. With a statistic mentioned earlier of the average itemized individual return generating $273 in fees, one of these per hour is possible. However, especially as you start your business and before you attract a significant client base, you’ll face unprofitable downtime.

How can you make your business more profitable?

Some accountants or CPAs offer tax prep as one of a range of accounting services. This business is also compatible with financial services, real estate brokerages, insurance and other fields where the business owner is comfortable discussing financial issues with clients. Also keep in mind that if your client base significantly consists of private contractors and small business owners, they might have additional tax issues throughout the year.

And finally, consider conducting tax prep training classes as a complementary service. You could conduct such a class through  The Income Tax School .

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your tax preparation business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a tax preparation business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A tax preparation business can be run out of an office. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a tax preparation business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your tax preparation business will be in compliance and able to obtain a CO.

Services Contract

Tax preparation businesses should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example of one such services agreement.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Tax Preparation Business needs and how much it will cost you by reading our guide Business Insurance for Tax Preparation Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a tax preparation business

As mentioned, your storefront might be your most effective marketing tool if opened within sight of your market audience. Also use social media, including LinkedIn and a Facebook group, to spread the word and communicate with your clients. Your marketing efforts might also go as low-tech and “old school” as handing out fliers to passersby and asking to post fliers or business cards in area businesses.

How to keep customers coming back

Excellent customer service—and satisfactory tax returns—will earn you repeat business through the years. These loyal clients are also likely to recommend you to friends, family or business associates.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

If you are a well-organized, people-oriented person who’s taken professional courses to learn the tax preparation business and are at ease with automation and digital software, you could thrive at this largely seasonal business. You should be able to handle long and probably stressful hours in a contained season of intense activity from January through mid-April. After that, you’ll have plenty of time to recover!

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a tax preparation business?

Think of your business as falling into two periods—tax season and pre-season—with very different areas of responsibility for each. During tax season, you’ll primarily see clients and prepare and file their taxes. Your goal is to do almost nothing but handle your clients since the tax-filing season is bound by the deadline dictates of the Internal Revenue Service and other taxing agencies.

Off-season, your responsibilities are more diverse. Your pre-season day will probably include some or all of the following activities.

• Interviewing and hiring temporary tax-prep employees, if you have a customer base that justifies seasonal help
• Seeking temporary storefront offices if you plan on working from such a public space rather than from your home
• Ordering and mastering your tax preparation software since software glitches or usage confusion during filing season can result in customer fee losses in the hundreds or thousands of dollars
• Conducting marketing and social media strategies to atttract customers

What are some skills and experiences that will help you build a successful tax preparation business?

In the beginning, your sales and marketing skills will be critical. That’s because you have a narrow window of opportunity for attracting business and plenty of name-brand competition (H&R Block, Jackson Hewitt, TurboTax, etc.). You must also have the patience to prepare for your business success by taking the 60-hour tax course you’ll need for certification and applying for efiling licensure from the IRS.

Once you’re in business, you’ll have to be able to work fast, efficiently and accurately to see as many clients and submit as many tax filings as you can over your limited calendar time. You must also be able to make your clients feel at ease regarding such topics as income, debt, taxes and penalties.

What is the growth potential for a tax preparation business?

The U.S. tax code contains 73,000 pages. Eighty-two million individuals file annually and the complexity of the process discourages most people from preparing their own taxes. While politicians from both parties promise simplification of the tax code, the reality is that the process only grows more complex. That means you can always feel confident of a customer base eager for your help.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a tax preparation business?

Start slow. In fact, before going on your own you might consider working for a season for one of the large competitors. This is a good way to sharpen your skills at using the software, confronting a variety of taxation challenges and working productively. You might also keep your day job and take on a few clients on nights or weekends at first. If you meet their needs they’re likely to be back for years to come—and be powerful word-of-mouth recruitment tools.

How and when to build a team

You look forward to the day when you’re so busy you need additional help. Remember, you don’t want to turn any client away because you don’t have time for them or you could lose them to a competitor forever. Before that happens, start to post for help on job boards. But be sure you state the requirement that applicants must have passed the 60-hour training course (or additional training if they’re to take on business tax clients).

Useful Links

Industry opportunities.

• National Association of Tax Professionals
• Jackson Hewitt (franchise opportunity)

Real World Examples

• Ann Arbor CPA

Further Reading

• What you need to start this business
• Tips for starting this business

Have a Question? Leave a Comment!

Taxes | Buyer's Guide

5 Best Online Tax Preparation Services for Small Businesses

Published February 16, 2023

Published Feb 16, 2023

REVIEWED BY: Tim Yoder, Ph.D., CPA

WRITTEN BY: Danielle Bauter

• 1 Quick Comparison
• 2 Xendoo: Best Overall
• 3 Bench: Best for Partnerships & Corporations
• 4 Bookkeeper.com: Best for Complex Small Business Tax Returns
• 5 Pilot: Best for Startups Seeking a Scalable Tax Solution
• 6 Block Advisors: Best for Choosing Between Virtual or In-person Professional
• 7 Methodology
• 9 Bottom Line

Small business tax returns are complicated, and it’s usually worth it to hire a professional to prepare your partnership, corporation, or individual business return. However, you don’t have to spend a fortune on a local certified public accountant (CPA). This guide provides a list of online tax professionals who will prepare your small business tax returns.

Here are our picks for best online business tax preparation services:

• Xendoo : Best overall small business tax preparation service without committing to a bookkeeping plan
• Bench : Best for tax preparation for partnerships and corporations bundled with year-round bookkeeping services
• Bookkeeper.com : Best for preparing complex small business tax returns
• Pilot : Best for startups seeking a scalable tax solution
• Block Advisors : Best for small businesses to choose between a virtual or in-person tax professional

If you’d prefer to prepare your own small business tax return, you can read our guide to the best small business tax software .

Comparison of Best Online Business Tax Preparation Services

Xendoo: best overall small business tax preparation service without committing to a bookkeeping plan.

The business tax preparation and filings of Xendoo are available with all plans for an additional fee of $1,200 per year. Whether you’re a sole proprietor, corporation, or partnership, Xendoo will prepare and file your tax return for the same low price.

It has tax experts who are well-versed with the requirements for each and will help you navigate your next tax season accurately. They will also file your personal taxes if needed. Xendoo is especially ideal for franchises with compliance needs because of its reporting tools and support for multiple currencies.

• Integrates with Xero and QuickBooks
• 30-day money-back guarantee
• Integrates with Gusto for payroll and most major ecommerce platforms
• Mobile app gives you access to your dashboards
• No invoicing and bill pay
• Custom chart of accounts is only available with most expensive plan
• No free trial
• Accrual-based accounting is unavailable with Essential plan
• Sales tax preparation: Xendoo’s sales tax experts will prepare and file your taxes accurately and on time so that you stay compliant.
• Franchise support: Xendoo can address the needs of franchises with accurate reporting based on a customized chart of accounts and support for multiple currencies and group benefits, such as group training sessions and webinars.
• Payroll integration: Xendoo integrates with Gusto , which helps you manage your employee information, benefits, and deductions. You can process payroll, file payroll taxes and forms, and process W-2s for employees.
• Multiple companies: If you have more than one business, you can add multiple companies easily within one account, and Xendoo will manage the books for all of them.

Xendoo Overview

• Plans & Pricing
• Deciding Factors

Xendoo offers year-round tax support and filing at a custom quote if you don’t get a bookkeeping plan. But if you do, it’s available as an add-on for $1,200 per year.

The three bookkeeping plans are based on the monthly expenses of your business and the number of bank and credit card accounts that are connected:

• Essential: $395 per month for up to $50,000 in monthly expenses and up to four bank and credit card accounts
• Growth: $695 per month for up to $75,000 in monthly expenses and up to six bank and credit card accounts
• Scale: $995 for up to $125,000 in monthly expenses and up to 12 bank and credit card accounts
• Custom: Custom quote for businesses with more than $125,000 in monthly expenses
• Catch-up bookkeeping: Starts at $295 per month
• Fractional CFO services: Starts at $1,500 per month

Xendoo’s services are charged at the beginning of your subscription term. If you sign up annually, you’ll receive a 10% discount. A 30-day notice is required for cancellation.

• Xero users: Xendoo is a Xero Platinum Partner, and it has created its own proprietary software that works with Xero so that its team can give you access to real-time data. You’ll also be given access to a free Xero account when you sign up for Xendoo’s services.
• Franchise businesses: Xendoo offers expert bookkeeping and tax services for franchise businesses, and it has experience working with both new and existing franchises. It has a custom yet scalable process to integrate with yours, which includes roll-up dashboards that provide insight into revenue trends, top expenses, and most profitable franchisees. It also allows you to add multiple currency support if needed.
• Ecommerce businesses: Xendoo provides multichannel ecommerce and seller marketplace accounting and will handle your bookkeeping whether you sell on Shopify, Etsy, Amazon, BigCommerce, WooCommerce, or any combination of these platforms. Xendoo also integrates with the most popular inventory tracking apps.

Visit Xendoo

Bench: Best for Partnerships & Corporations Bundled With Year-round Bookkeeping Services

Bench provides bookkeeping support at a lower cost than many similar platforms while also offering tax assistance and payroll integration. It even has catch-up bookkeeping services if you have fallen behind on your bookkeeping.

The annual business tax return (Form 1120, 1120S, or 1065) is included in Bench’s Premium plan. The Premium plan for self-employed businesses includes the entire personal return along with Schedule C. Partnerships and corporations are included with the Premium plan, and you can add on personal filing for one partner or shareholder for $69 per month.

• Unlimited support included in the monthly price
• Access to a team of in-house tax pros
• Affordable bookkeeping plan includes a business income tax return
• Catch-up bookkeeping available
• Cannot purchase tax services without a bookkeeping plan
• No Android app for communicating with your tax pro
• Cannot add more than one individual return for the discounted price of $69 per month
• Bookkeeping system operates on proprietary software that makes it difficult to change bookkeeping providers
• Tax assistance: With Bench’s Premium plan, your federal and state business tax returns, as well as individual returns for sole proprietors, are included.
• Payroll integration: Bench integrates with Gusto to help you manage your payroll. It will handle your payroll tax filing, manage employee information and benefits, and generate W-2s.
• Financial statements: You’ll receive financial statements, including a profit and loss, balance sheet, income statement, and top expenses, on a monthly basis.
• Dedicated bookkeeper: Your dedicated bookkeeper will handle all aspects of your account and serve as your main point of contact.

Bench Overview

You must purchase the Premium plan if you want tax preparation services, but there is a less expensive Essentials plan if you’re looking for just bookkeeping. S-corps, C-corps, and partnerships in the Premium plan can add one individual return for a partner or shareholder for $69 per month.

• Essential: $299 per month for monthly bookkeeping ($249 per month if paid annually)
• Premium: $499 per month for monthly bookkeeping, annual tax filing, and tax advisory services ($399 per month if paid annually)
• Businesses that don’t want to purchase or learn accounting software: With Bench, you’ll be connected to a team of professional bookkeepers who will maintain your books, eliminating the need to purchase your own accounting software
• Businesses needing unlimited bookkeeping support: Bench provides you with direct, unlimited communication with its in-house research team, making it easier for you to seek bookkeeping support and guidance.

Visit Bench

Bookkeeper.com: Best for Preparing Complex Small Business Tax Returns

Bookkeeper.com will help you file your returns while also helping to minimize your tax liability with careful planning. We selected it for this guide because of its ability to prepare complex small business tax returns. In addition to individual and business tax returns, it will also prepare your gift and estate tax returns, partnership and corporate tax returns, and out-of-state returns.

Its tax experts will even teach you tax-saving strategies and maximize after-tax income by deferring income and managing investments. They will also educate you on the basics of taxation and how taxes are calculated.

• Tax experts are available to teach you tax-saving strategies and the basics of taxation
• Assistance with all types of tax returns, including partnership and corporate tax returns
• Specializes in QuickBooks Online
• Unlimited online support available with most plans
• No free trial available
• High monthly service fee
• Lack of transparent pricing with add-on services like tax preparation
• No mobile app available
• Tax planning: Bookkeeper.com’s tax experts will help you maximize after-tax income by deferring income and managing investments, as well as teaching you tax-saving strategies
• Free advice: Your monthly plan includes general business consulting, software training, tax planning, and strategic planning
• Tax and consulting services: Bookkeeper.com’s tax services include: individual and business tax returns, gift and estate tax returns, partnership and corporate tax returns, estate and succession planning, out-of-state returns, and business startups
• Dedicated bookkeeper and account manager: Your dedicated bookkeeper is a certified QuickBooks ProAdvisor, and you’ll also be assigned an account manager who’ll assist with onboarding activities and serve as your point of contact

Bookkeeper.com Overview

To receive tax assistance, you must purchase a bookkeeping plan. However, pricing for income tax preparation and filing is unavailable on Bookkkeeper.com’s website—you must contact the provider for a quote.

Bookkeeper.com’s bookkeeping service has four subscription levels, which are determined by the number of transactions per month and the frequency of service. If your business needs additional services—such as tax filing, payroll management, or budget preparation—Bookkeeper.com will create a customized quote based on the size and needs of your business.

• Small Business (monthly): $399 per month for up to 100 transactions per month
• Small Business Plus (semi-monthly): $599 per month for up to 200 transactions per month plus 20 bill payments
• Small Business Advanced (weekly): $799 per month for up to 300 transactions per month plus 40 bill payments
• Custom (weekly): Custom pricing for more than 300 transactions per month
• QuickBooks Online users: Bookkeeper.com offers more services to QuickBooks Online users than the QuickBooks Live bookkeeping service, including payroll, business advice, bill pay, and tax preparation.
• Businesses looking to outsource bookkeeping: Bookkeeper.com fills the traditional role of a certified public accountant (CPA) by extending services beyond number crunching and data entry to offer general business advice.
• Businesses seeking access to payroll services: Bookkeeper.com offers a comprehensive payroll solution that releases you from the burden of monthly payroll processing. These services include payroll accounting, federal and state tax compliance, quarterly and year-end tax forms, payroll reporting, and W-2 and 1099 processing.

Visit Bookkeeper.com

Pilot: Best for Startups Seeking a Scalable Tax Solution

Pilot is the best solution for startups because it offers two levels of service: Essentials, which is ideal for businesses just getting started; and Standard, which is for United States businesses that are growing quickly with net income or foreign subsidiaries. For companies that incurred research and development (R&D) expenses in the US, Pilot can handle the full claim process and provide the necessary documentation to back up your claim with the IRS.

• Dedicated bookkeeper
• Unlimited connected bank and credit card accounts
• Industry-specific financial reports
• Chief financial officer (CFO) services available
• No cash-basis accounting
• Businesses must use QuickBooks Online
• Plans are more expensive than other options and must be prepaid annually
• Payroll services unavailable
• Tax management: Pilot Tax is available as a separate package and federal-, state-, and city-level income tax prep and 1099 filing
• Dedicated tax preparer: You’ll be assigned your own dedicated tax preparer who will answer all of your questions and provide you with access to live status updates of all of your filings.
• Accrual-based accounting: Accrual-based accounting is available with all plans.
• Monthly financial reports: Basic financial reports are sent on a monthly basis. The Core plan offers more customized reports as well.

Pilot Overview

Pilot offers two different plans for tax services:

• Essentials: $2,450 per year, which includes federal corporate income tax and 1099 filing
• Standard: Custom pricing, starting at $4,950 per year

It also provides tax consulting at an hourly rate that varies depending on which tax plan you subscribe to:

• Essentials: Starting at $350 per hour
• Standard: Starting at $300 per hour

It has two bookkeeping plans (not required for tax services) that scale with your monthly expenses and your business needs:

• Core: Starts at $499 per month for less than $30,000 in monthly expenses; includes features like dedicated finance expert, financial statements, and support
• Plus: Custom pricing; best for large businesses with complex needs
• Pilot CFO: Starts at $1,350 per month, billed annually for monthly engagement and $8,100 per year for annual budgeting and forecasting
• A/R and A/P: Starts at $125 per hour for support with paying bills and creating and sending invoices
• Controller services: Starts at $200 per hour for assistance with cost of goods sold (COGS) categorization, revenue recognition best practices, and other services as needed
• Rapidly-growing businesses, such as high-growth tech startups: As your business grows and potentially takes on funding, it can take advantage of the accrual-basis and advanced bookkeeping features that Pilot offers.
• Multiple entities: Pilot offers support for multiple entities with its Plus plan, which has custom pricing.
• Businesses looking for tax and/or CFO services: Pilot Tax and Pilot CFO allow you to access CFO consulting services and file business corporate taxes as well as 1099-MISC forms.

Visit Pilot

Block Advisors: Best for Small Businesses to Choose Between a Virtual or In-person Tax Professional

Once you sign up with Block Advisors , you’ll be given the option to meet with your tax pro either in person or via phone, video conference, or live chat. Your tax advisor will complete the necessary forms and allow you to review the return before filing. They’re also available year-round for any questions that may come up.

• Free unlimited live expert help
• Ability to meet with a tax pro in person or virtually
• Transaction syncing available
• No mobile app for communicating with your tax pro
• Block Advisors only partners with Xero accounting software
• Small business expertise: Your Block Advisor is equipped to handle anything from your Schedule C return to reviewing your financial statements.
• Accessible support: Support is available via phone, video, and live chat. You can also file with a tax pro in person at a location near you.
• 100% Accuracy Guarantee: You can rest assured that your books will be accurate as Block Advisors guarantees that if it makes an error on your return, you’ll be reimbursed for any resulting penalties and interest.
• Payroll services: In addition to providing payroll services, Block Advisors can assist with generating payroll, creating and filing quarterly and year-end payroll tax forms, and providing support.

Block Advisors Overview

Block Advisors offers full-service tax preparation for all types of small business returns:

• Self-employed: Starts at $220
• Partnership: Starts at $260
• S-corps and C-corps: Starts at $260

A bookkeeping plan isn’t required to receive tax services but is available starting at $150 per month.

• Businesses that want the ability to meet with a tax professional either virtually or in-person: Known for its flexibility, Block Advisors will accommodate your meeting preference, whether that’s in person or via phone, video, or live chat.
• Businesses that prefer Xero accounting software: Block Advisors partnered with Xero to provide full access to Xero for free if you sign up for a Block Advisor bookkeeping plan. Xero made our list of the best small business accounting software .
• Businesses looking to also outsource their bookkeeping and payroll: With a full menu of financial services, Block Advisors lets you customize a package that works for your business. Bookkeeping services include the option of do-it-yourself (DIY) with on-demand support or full-service with a dedicated account manager.

Visit Block Advisors

How We Evaluated Online Full-service Tax Preparation Services

We evaluated the best online full-service tax preparation services based on the following criteria:

• Cost: Because each plan depends on many factors, we looked at the value provided in terms of the time and potential money you’re saving by using the service.
• Available tax solutions: We looked at the types of returns that are available, as well as whether tax consulting is available.
• Support: You should be able to access a dedicated bookkeeper for any questions or advice and one-on-one assistance. We evaluated whether unlimited support was available, as well as the ways that you could communicate with your tax advisor.
• Additional services offered: The best accounting service should offer a wide range of solutions, including catch-up bookkeeping, payroll, invoicing, and bill pay.
• Mobile app: Many of these tax preparation services have their own mobile app that can assist businesses on the go with staying connected 24/7.

Frequently Asked Questions (FAQs)

How much does block advisors charge to file your taxes.

Block Advisors lets you choose between DIY and full-service options for tax filing. The Tax Filing DIY plan starts at $195 plus $44.99 per state filed and the Tax Filing Full-Service plan starts at $220. Although it’s not required, you can also opt for bookkeeping services, which range from $50 to $150 per month.

Does Bench offer a mobile app?

Bench offers a mobile app for iOS users, but there’s currently no app for Android users.

Does Pilot assist with the claim process for R&D expenses?

Yes, Pilot will help you with the full claim process and it will provide the necessary documentation to back up your claim with the IRS.

Bottom Line

The best online business tax preparation services depend on the exact needs of your business. If you’re seeking a tax solution but don’t want to commit to a bookkeeping service, Xendoo might be the best option for you. If you want a bookkeeping service that bundles its tax prep for partnerships and corporations, you should consider Bench . If your startup is seeking a scalable tax solution, Pilot could be a good fit for you.

About the Author

Find Danielle On LinkedIn

Danielle Bauter

Danielle Bauter is a writer for the Accounting division of Fit Small Business. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor's degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for various consumer publications.

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Business Plan Template for Tax Preparers

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

As a tax preparer, staying organized and focused is crucial for success in a highly regulated industry. With ClickUp's Business Plan Template for Tax Preparers, you can streamline your operations and take your tax preparation business to new heights.

This template is designed to help tax preparers:

• Define clear business goals and strategies to stay on track
• Create comprehensive financial projections for better financial management
• Identify target clients and develop effective marketing strategies
• Ensure compliance with tax laws and regulations

With ClickUp's Business Plan Template for Tax Preparers, you can have a solid foundation for your tax preparation business and confidently navigate the ever-changing tax landscape. Don't wait, get started today and watch your business thrive!

Business Plan Template for Tax Preparers Benefits

Preparing tax returns can be complex, but having a solid business plan template specifically designed for tax preparers can streamline your operations and set you up for success. Here are some benefits of using a business plan template:

• Clearly define your business goals and objectives
• Develop effective strategies to attract new clients and retain existing ones
• Create financial projections to ensure profitability and manage expenses
• Stay compliant with tax laws and regulations
• Streamline your operations and improve efficiency
• Secure funding or investment for your tax preparation business
• Easily communicate your business model and value proposition to stakeholders.

Main Elements of Tax Preparers Business Plan Template

Are you a tax preparer looking to streamline your business planning process? ClickUp’s Business Plan Template for Tax Preparers has got you covered!

Here are the key elements of this template:

• Custom Statuses: Keep track of the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Use fields like Reference, Approved, and Section to add important information to your business plan and easily organize your data.
• Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide to navigate through your business plan with ease and visualize your progress.
• Collaboration and Documentation: Utilize ClickUp's Docs feature to collaborate with your team, store important documents, and create a comprehensive tax preparation business plan.
• Task Management: Assign tasks, set due dates, and track progress to ensure that your business plan is completed on time.
• Integration: Seamlessly integrate ClickUp with other tools you use for tax preparation such as email, AI, and other integrations to enhance your workflow.

With ClickUp’s Business Plan Template for Tax Preparers, you can efficiently create and manage your business plan, saving time and ensuring compliance with tax laws and regulations.

How To Use Business Plan Template for Tax Preparers

If you're a tax preparer looking to create a comprehensive business plan, follow these steps to make the most of the Business Plan Template in ClickUp:

1. Define your services and target market

Start by clearly defining the services you offer as a tax preparer. Are you specializing in personal tax returns, small business taxes, or both? Next, identify your target market. Who are your ideal clients? Are they individuals, small businesses, or specific industries? Understanding your services and target market will help you tailor your business plan accordingly.

Use the Docs feature in ClickUp to outline your services and target market.

2. Conduct a competitive analysis

Research and analyze your competition to gain insights into their strengths, weaknesses, and strategies. This will help you identify gaps in the market and differentiate yourself from competitors. Look for areas where you can offer unique services or provide better value to your clients.

Utilize the Table view in ClickUp to create a competitive analysis matrix and track information about your competitors.

3. Set financial goals and projections

Determine your financial goals and projections for your tax preparation business. This includes setting revenue targets, estimating expenses, and projecting profits. Consider factors such as marketing and advertising costs, office rent, software subscriptions, and employee salaries. Having clear financial goals and projections will help you track your progress and make informed business decisions.

Use the Goals feature in ClickUp to set and track your financial goals and milestones.

4. Develop a marketing strategy

Create a comprehensive marketing strategy to promote your tax preparation services and attract clients. Identify the most effective channels to reach your target market, such as social media, online advertising, networking events, or partnerships. Develop a consistent brand message and establish your online presence through a professional website and social media profiles.

Utilize the Calendar view in ClickUp to plan and schedule your marketing activities, including content creation, social media posts, and networking events.

By following these steps and utilizing the Business Plan Template in ClickUp, you'll be well-equipped to create a strategic and effective business plan for your tax preparation business.

Get Started with ClickUp’s Business Plan Template for Tax Preparers

Tax preparers can use the ClickUp Business Plan Template to streamline their business planning process and stay organized throughout the year.

To get started, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to outline different sections of your business plan, such as marketing strategies, financial projections, and client acquisition plans
• The Status View will help you track the progress of each section, whether it's Complete, In Progress, Needs Revision, or To Do
• The Timeline View will allow you to set deadlines and milestones for each section of your business plan
• The Business Plan View provides a comprehensive overview of your entire plan, allowing you to easily navigate between sections and make updates
• The Getting Started Guide View will provide you with step-by-step instructions on how to use the template and create an effective business plan
• Customize the template by adding custom fields like Reference, Approved, and Section to track additional information and ensure accuracy
• Update statuses and custom fields as you make progress and receive approvals to keep stakeholders informed and ensure accountability
• Monitor and analyze your business plan using the different views to ensure maximum productivity and success.
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Writing Tax Business Plan

Tax Business Plan season can be stressful for anyone as it afflicts individuals and businesses alike, so running a venture as a tax professional can serve as a saving grace for people from all walks of life. Despite the persisting need for tax services, spearheading a tax practice still requires a clearly defined vision, so you know where to direct your business.

Without a roadmap to use as a guide, you’ll be driving your venture blindly without any outlines to refer to for your operations throughout your growth. That’s why writing a detailed business plan is important since it allows you to make financial projections and market analyses. However, the content doesn’t have to be as comprehensive as you would expect from companies planning to get a business loan or investors.

Writing a Tax Business Plan For Your Practice: What to Include?

Since you only need to include details regarding your tax practice’s goals, strategies, and relevant market researches, the information below should be more than enough to enhance your business plan:

1. Products and Services

As a tax professional, it’s important to lay out what you can offer to your clients. After all, diversifying your services can widen your market reach since many businesses prefer to outsource tax preparers, including bookkeeping services, as part of a package deal. With that in mind, some of the additional services you can include are the following:

• Tax preparation for individuals, sole proprietors, freelancers, or businesses;
• Bookkeeping and basic accounting services for small businesses;

You also have the option of managing bank-related products for your clients, so they have more options to explore when receiving their refunds.

2. Market Analysis

Knowing that most working individuals and organizations need tax preparation services won’t do you any favors in the long run, especially since you still need to collect deeper insights into your clients’ unique needs and pain points.That’s why your tax business plan—whether it’s for your eyes only or not—requires an extensive market analysis so you can identify your market and understand their problems, needs, and what services they typically gravitate towards when seeking accounting services.

Other than analyzing what constantly afflicts your target audience, it also helps to stay on top of any governmental regulations and territorial restrictions you may run into in the future.

3. Execution Plan

Once you understand your services and know the ins and outs of your target market, you can plan for your execution strategy by honing the following:

• Marketing tactics
• Customer acquisition tactics
• Necessary equipment

4. Financial Plan

Penning down your financial goals can be tricky, especially since you first have to consider the cost of running your business. Some key pointers that can help narrow your numbers include the following:

• Cost of starting a tax business and its maintenance;
• Fees of your tax preparation services;
• Client base to meet your profitability expectations;
• Yearly projected profits;

The Bottom Line: The Importance of Having a Business Plan

Running a tax business can be overwhelming since you’ll be juggling multiple responsibilities, so taking the lead on a whim will only make the journey ahead even more difficult. By preparing a basic yet well-crafted tax business plan, you have a more solid guide that can help drive your venture forward in the right direction.

How Can We Help?

Dealing with taxes can be challenging for anyone, even as an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you.

Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

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Tax Preparation Business Plan Template & Guidebook

Starting a tax preparation business requires extensive planning and research to ensure success. The #1 Tax Preparation Business Plan Template & Guidebook provides a comprehensive resource for any aspiring business owner looking to make their vision a reality. This guidebook offers actionable advice and tips for developing an effective business plan, as well as templates and resources to help you understand and organize the various components. With this comprehensive guide, you can develop a clear strategy for launching the tax preparation business of your dreams.

Get worry-free services and support to launch your business starting at $0 plus state fees.

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• 25 Catchy Tax Preparation Business Names:

How to Write a Tax Preparation Business Plan in 7 Steps:

1. describe the purpose of your tax preparation business..

The first step to writing your business plan is to describe the purpose of your tax preparation business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a tax preparation business:

Our mission at XYZ Tax Preparation is to provide the highest quality, individualized tax services to our clients in an efficient, ethical, and cost-effective manner. We strive to create meaningful relationships with our clients and ensure that their individual tax needs are met by providing unparalleled customer service. We are committed to being a top provider of tax services in our community and providing accurate and reliable information to ensure compliance with IRS regulations.

2. Products & Services Offered by Your Tax Preparation Business.

The next step is to outline your products and services for your tax preparation business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your tax preparation business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your tax preparation business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your tax preparation business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a tax preparation business?

To run a Tax Preparation business, one will need the following equipment, supplies, and permits:

• Computer with a reliable internet connection
• Tax software
• Printer/scanner/copier
• Business license
• Filing cabinets or storage system for paperwork
• E-file provider authorization from the IRS

5. Management & Organization of Your Tax Preparation Business.

The second part of your tax preparation business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your tax preparation business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Tax Preparation Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a tax preparation business varies based on many different variables, but below are a few different types of startup costs for a tax preparation business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your tax preparation business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your tax preparation business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your tax preparation business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Tax Preparation Business Plans:

Why do you need a business plan for a tax preparation business.

A business plan for a tax preparation business is an important document that outlines the goals and objectives of the business, describes how it will be organized and operated, evaluates potential risks and rewards, and provides estimates of expected costs, income and other financial information. It is an essential tool for getting financial backing from investors or lenders, as well as being a key factor in determining success. A comprehensive business plan also helps in understanding the current market conditions and setting realistic goals.

Who should you ask for help with your tax preparation business plan?

You should consult with an accountant or tax preparation professional to get help with your tax preparation business plan. This professional can provide you with valuable insight into the necessary steps to set up a successful business, such as document filing requirements, operational costs, and potential revenue. Additionally, depending on the scope of your business plan, you may also need to speak with a lawyer to ensure that you are compliant with all local, state and federal regulations.

Can you write a tax preparation business plan yourself?

Yes, it is possible to write a tax preparation business plan yourself. Writing a business plan can help you gain insights on how to start and run a successful tax preparation business. A comprehensive business plan should include details about the target market, services provided, competitive landscape, marketing strategy, financial projections, management team and more. Researching the industry and consulting with other professionals such as lawyers or accountants can help you develop an effective and comprehensive plan for your tax preparation business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Tax Preparation Business Plan Template [Updated 2024]

Tax Preparation Business Plan Template

If you want to start a Tax Preparation business or expand your current Tax business, you need a business plan.

The following Tax Preparation business plan template gives you the key elements to include in a winning Tax Service business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a successful tax preparation service business plan. Once you create your plan, download it to PDF to show banks and investors.

Tax Preparation Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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7 planning considerations for this fiscal year

If you’re the person who’s always helping family and friends prepare their taxes, it might be time to start your own business. After all, tax preparation is in demand every year, and you’ve found that you have a facility for finding solutions and helping people navigate the tax-code maze. Plus, the IRS’ stricter requirements for credentialing and continuing education create opportunities, as the casual tax preparers drop out and leave the field to entrepreneurs with dedication and drive. 

The first step is nailing down your business plan. This step-by-step guide shows you how easy and rewarding it is to get credentialed, write your plan and launch your business on the road to success. 

7 keys to creating a business plan for tax prep service 

Maybe you’d rather dive into your enterprise without a business plan, but research says that businesses with a plan grow more quickly and are likelier to succeed than those without one. Fortunately, your business plan doesn’t have to be long and complicated. Even a lean one-pager can launch your business with a direction and destination in mind. In fact, research also shows that simpler plans are updated more often and are easier to review.  

Effective business plans discipline you to set regular goals, track your progress and adapt as you learn more about your customers.  

Follow these seven keys to writing a business plan, and your tax practice will take wing.

Proper training and continuing education 

People trust their tax preparers with the solemn responsibility of helping them navigate the tax-code maze. That’s where proper training and continuing education enter the picture. Consider these two credentials that project professionalism and expertise: 

• Enrolled Agent (EA): The enrolled agent is the IRS’ highest credential for tax preparers. The EA confers unlimited practice rights, giving you the power to represent your client before the IRS, everywhere in the U.S. As an EA, you become an indispensable adviser with higher earning power as clients seek out your help year-round. The credentialing process includes an IRS exam, so if you decide to become an EA , Surgent Income Tax School can set you up for success. After you’ve taken a few tax courses and think it’s time to rise to the next level, consider registering for the Surgent EA Review course . It’s the fast track to becoming an enrolled agent, from an industry leader in EA Exam preparation.  
• Certified Public Accountant (CPA): The Certified Public Accountant process is rigorous, but attainment proves your mastery of tax matters for a wide range of clients. 

Continuing education is a mainstay in credentialing and professionalism because the tax code is complex and ever-changing. Surgent Income Tax School offers a variety of highly relevant CE courses to help you stay compliant on tax law changes and up-to-date with trends in tax preparation. 

Marketing strategies for your tax prep business 

Building a social media presence establishes your brand, differentiates your services, builds engagement and loyalty, and attracts new clients.  

But remember that social media demands a constant stream of content. Map out a weekly or monthly social media schedule, and consider these ideas for keeping it fresh: 

• Blogs: Establish yourself as a tax-preparation expert by offering advice, answering frequently asked questions or sharing your take on current events. 
• Infographics: Visuals get attention, and with a Canva account, you don’t need to be a graphic artist to explain taxation issues in pictorial form. 
• Memes: Show your sense of humor by sharing relevant memes or making your own.   
• Videos: Videos drive engagement. Keep them under 60 seconds, and add text in case the viewer turns off the sound. 
• Q&As: Show your expertise and offer value to potential clients. 
• Promotional material: Go easy on self-promotion, but occasionally share client testimonials, descriptions of your services and any deals or specials you might be offering. 
• Polls: Everyone likes to share their opinions. Create quick polls with questions related to preparing taxes. 

Provide excellent customer service 

In a competitive field, how do you stand out from the crowd? Customer service is the key to differentiation. These techniques build loyalty and attract new clients: 

• Be a good listener: Find out what’s important to your clients. 
• Be a clear communicator : Make it clear from the outset what you will deliver and what you expect from your client.  
• Give more than expected: Value-add means offering a little extra, even if it’s preparing your client’s teenage child’s 1040EZ for free. Or share a special treat, such as gourmet coffee or cookies on the table.  
• Treat your employees and clients well : Thank your employees, share fun excursions or office perks (chair massages are always welcome) and provide the training and equipment they need to do their jobs. When they’re happy in their work, they will be pleasant and helpful with your clients. While you’re at it, thank your clients, too. Make sure they have everything they need to make tax time easier. 
• Ask for feedback: In person or by survey, find out what clients think of your services and manners. Be open to constructive criticism, and show that you’re listening by crafting solutions.  
• Provide year-round attention : Keep in touch, and top of mind, with monthly email updates. Share tax tips, office news and even personal notes on your life and family. Let your clients get to know you, and they’ll be more comfortable sharing their personal information with you at tax time.  

Manage your time

Tax time is insanely busy, but it’s also the most critical time for paying attention to detail. Stay focused and productive with these tips: 

• Create multiple lists : Create that daily list of the things to finish each day but get more done by complementing it with separate lists devoted to projects, monthly and annual goals, and personal goals. Put your dream accomplishments on a bucket list, and think about how to move them toward your goals lists. 
• Prioritize your lists: When you tackle your easy tasks first, you don’t accomplish much of significance. Instead, try Brian Tracy’s classic “Eat That Frog” approach. Tackle the most productive item, even if it’s the ugliest frog on the list, and things will start to happen. 
• Make time to get work done: Create “do not disturb” time and stop checking emails constantly. Instead, schedule times for checking email at regular intervals. 
• Re-evaluate your lists: Review regularly and ask if delegating the simpler tasks frees your time for more lucrative pursuits.  

Make sure you get paid

When you think about launching your business, it’s possible that you didn’t think much about the crucial matter of getting paid. You might even dread the idea of chasing after clients with unpaid invoices. Developing a strategy upfront helps you avoid the aggravation and get paid more quickly, so try these tips: 

• Put due dates prominently on invoices. Terms like “net 14 days” get less attention than actual dates. 
• Include the invoice with the tax return. 
• Ask for payment up-front or a 50% deposit when you meet clients and collect documents. 
• Accept credit cards or use electronic payment exchanges. 
• Send overdue accounts a red invoice. Often, bills go unpaid because the recipient is distracted or didn’t get around to it. Red gets their attention.  
• Offer a payment plan. For clients with complex tax returns, a payment plan can help them stretch out their budgets. 

Diversify your tax prep services

Fill your business plan with a slate of diverse services and you muscle up your year-round earning power. Consider these possibilities: 

• Business tax preparation and consulting : As you pursue continuing education and earn your EA credential, you learn more about preparing business returns. Put that knowledge to good use by marketing your business capabilities. 
• Payroll tax filings: Let your small-business clients know that you can take payroll tax filings off their hands. 
• Tax representation: When your clients have business to conduct with the IRS, you can be at their side if you’re an enrolled agent. 
• Tax planning services: Think back to your tax-time clients who made choices that cost them on their tax returns. Offer consultation on planning that minimizes their tax liabilities next year.  
• Financial services: While preparing taxes, you report on your clients’ IRAs, 401(k)s and other investment vehicles. Expand your pool of year-round clients by helping them manage, protect and maximize their investments. 

Sample business plan for tax preparation service 

Now that we’ve covered the essentials of starting and growing a business , it’s time to corral them into a business plan. For a comprehensive plan, include these elements: 

• Executive summary: A good executive summary puts the key points of your plan in bullet points. Write it after the rest of the plan is complete, and you’ll have a quick reference you can check frequently for review and updates. 
• Products and services: Describe exactly what you will offer your clients. There is tax preparation for individuals, of course, but you can also offer bookkeeping, bank products that streamline how clients get their refunds, and tax prep for sole proprietors and freelancers. 
• Market analysis: Draw a picture of the business landscape, identifying target customers and their needs, fees that clients typically pay, the competition, the regulations and requirements you face as the cost of doing business. Scrutinizing the specialties of potential competitors can reveal voids that you can fill – perhaps offering tax preparation for gig workers out there delivering restaurant meals or shared rides. 
• Execution: This is where you detail your market plan, customer acquisition strategy, necessary equipment, location and timeline for important events and target dates. The timeline makes it more likely that you’ll reach your goals. 
• Financial plan: Numbers matter. Here’s where you detail start-up and operational costs, your fees, the number of clients you’ll need to make a profit and projected profits for the first year. 

Put your business plan for tax prep service into action 

Think about the things that go more smoothly with a plan in place. Vacations. Business trips. The daily rush of family life. A plan helps ensure your satisfaction and productivity, and that’s true for launching a business. Even if you’ve been preparing tax returns for several years, you’ll find that stepping back and gathering your goals into one document provides focus and direction.  

The highly relevant courses from Surgent Income Tax School equip you with the latest knowledge in tax preparation. Add a credential such as the enrolled agent, and you establish yourself as a capable, recognized professional. Take these steps to attract new clients and add value for existing clients, and your business will grow according to plan. Check out our website for a list of continuing education courses that can take your tax prep business to the next level. 

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Tax Preparation Business Plan Sample

JAN.29, 2019

Do you want to start tax preparation business plan?

Do you really want to start a business with a little or no tension of managing your employees with literally no startup investment and no restriction of working hours? Well, you might be wondering whether such sort of business exists.

If you really have some knowledge of accountancy or if you have done some tax-related course, then starting a tax prep business will surely meet all the requirements of your dream business. You can start this business only by preparing taxes yourself or by renting a small office, hiring some staff for you.

Whether you are starting on a small scale or a large scale to get high paying clients, the first step will always be to prepare an effective business plan. To help you in making a professional business plan covering all the details, we are providing here sample business plan of a tax preparation startup named, ‘ConsulTax.

Executive Summary

2.1 the business.

ConsulTax will be a registered and licensed tax preparation service , owned by George Brad. The office building will be located in Madison, Wisconsin, USA. Business will be based upon preparing taxes such as federal and state tax, income tax, self-employment or any other tax for households as well as business owners.

2.2 Management

Before you start a tax preparation business , you must decide on which scale are you going to extend your startup. If you are starting on a large scale, you will need a strong management system with a detailed management plan else you can go through with a simple one.

As of George, although he is starting on a small scale, yet he has prepared a complete management plan for his business for the sake of completeness.

2.3 Customers

When you are doing so many efforts to start a tax business successfully, then why ignore the important fact of exploring about your customers. You must remember you will be working with multiple customers of different temperaments at the same time, so try to understand the demands they can have with a tax preparer.

Our customers will mostly be the owners of small businesses, head of small institutes, property owners, earning members of a household etc.

2.4 Business Target

Our target is to balance the initial cost of the startup with earned profits within a year of the launch. We aim at earning a net profit margin of $10k per month by the end of the first year.

Company Summary

3.1 company owner.

ConsulTax will be owned by George Brad, a business graduate from the University of Illinois. To be a professional tax preparer, George has taken the training from Accreditation Council for Accountancy and Taxation (ACAT), has got himself registered with Internal Revenue Service (IRS) after clearing their course, and finally obtained his Preparer Tax Identification Number to enter the field with a proper professional background.

3.2 Why the Business is being started

Millions of people have to pay a tax every year as the per policy of their country which is being changed by higher office holders continuously. Large companies and notable landlords usually afford a full-time accountant whereas, small business holders and mediocre seek the services of tax preparers to do all the confusing stuff for them. Considering this demand, freedom with respect to time and his marketing skills, George is starting a tax preparation business in his city.

3.3 How the Business will be started

ConsulTax will be a small tax preparation business, operating from a small office. George has decided to hire just two tax professionals, and other staff to help him starting a tax business .

The startup summary is as follows:

The detailed startup requirements are given below:

Services for customers

Before thinking about how to start a tax preparation business , you must decide what you will offer your customers. This preplanning and knowledge about what you have to do and what level of client’s satisfaction you will have to meet will make you more observant about your business and targets.

While creating your tax preparation business plan , you must include the detail about how you will be able to provide the optimal and efficient services to meet all the client’s satisfaction and needs. If you want to have an idea which services are provided by others in the market, you can take help from this sample business plan for the tax preparation startup, ConsulTax.

The services offered by ConsulTax are:

• Income Tax Preparation
• Income Tax Return Preparation
• Standard Tax Preparation
• Capital Gains Tax Preparation
• Other financial consulting and advisory services

The services will be increased after we have established ourselves as a successful business. We want to become the number one choice for our fellow citizens, that’s why we are preparing for our services before time to ensure and guarantee the quality of our services.

Marketing Analysis of Tax Preparation Business

After you have decided the services you will provide to your customers, the next step is to make marketing plan for tax preparation business . Marketing analysis is extremely important because it gives you an idea of your position in the market.

The marketing plan includes exploring what is going on in the market, who will be your customers and competitors. While preparing your tax services business plan , tax preparation marketing should be considered seriously, especially if you are working alone.

You will need a strong marketing plan to market your services and get introduced to as many people as possible. Otherwise, you can sort out other advertisement techniques by reading tax preparation advertising samples available on the web. Another way of getting more and more ideas about business plan preparation service is to observe what others with the same or nearly same business are doing to market them.

We are also providing the sample business plan for tax preparation service of ConsulTax for your help.

Immigration Business Plan

5.1 market trends.

There are several small businesses running in the United States which cannot afford a full-time tax consultant or accountant but need the assistance of a professional tax preparer almost every time they need to pay their taxes. Millions of people have to pay a tax every year as the per policy of their country which is being changed by higher office holders continuously. A person who is indulged in the day to day tasks always needs assistance with doing that tedious task, so the demand of this business is really high.

According to a report by U.S. Bureau of Labor Statistics, there were more than 90 thousand jobs for the tax preparers in the country in 2014. The value has increased by a significant amount in 2018. According to IBISWorld, there are about 118,890 registered and licensed Tax Preparation firms running in the United States of America alone. More than 292 thousand have got their employment through this business, generating a revenue of $10 billion annually. Moreover, the business is forecasted to increase by the rate of 4.5% annually. These stats show that you will not be at loss, provided that you plan your business successfully.

5.2 Marketing Segmentation

It is very important to analyze the market segmentation of the future customers of your services before developing your business plan. Our experts have identified the following type of target audience which can become our future consumers:

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Corporate Sector: The biggest consumer of our services will be the corporate sector in Madison, who needs a lot of documentation and following of policies while preparing for their different types of taxes. During the initial stages of our business, we will mainly focus on the small companies to get us introduced to big dealers with much experience.

5.2.2 Earning Members: Our second target group comprises of the workers servicing in Madison, we will do the work of tax preparations for them to save them from the trouble of doing things by themselves about which they know nothing.

5.2.3 Property Owners: Our third target group consists of small and large property owners in Madison. We will advertise our services to get work offers from property owners for tax preparation.

The detailed market analysis of our potential customers is given in the following table:

Business Target

Our target is to balance the startup cost of our business with the earned profits within a year of the launch and; to earn the profit margin of $10k per month by the end of the first year.

5.4 Product Pricing

At the very initial stage of your business, product pricing must be decided by analyzing both the market demands and the position of your competitors. After great research and interpretation, George has decided to keep the prices of his services initially low as to get introduced to a wider scale of customers and building long-lasting relations with them.

Great service

Great service. Good turnaround time and quality work. Thanks!

Sales strategy must be developed and properly written in your tax preparer business plan as it is the stepwise guide for you to enhance and extend your business to approach your business target. It consists of an effective advertisement plan and a competitive approach which you can better understand from this sample tax preparation business plan .

6.1 Competitive Analysis

There are a lot of tax preparation businesses running all around here. However, we are passionate that with our unparalleled and exceptionally good service, we will soon be able to make our place in the market. To get introduced to our customers and to interact with more and more people we have decided to keep our prices low at the initial stages of the startup.

6.2 Sales Strategy

To introduce ourselves to the target market, we have come up with the following ideas of advertisement,

• We will distribute our brochures to our neighboring facilities and expected customers
• We will put our ads in newspapers and magazines
• We will start our campaign through social media sites
• We will be giving a 20 % discount on the second offering by the same client

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

Here comes the most influencing and effective step from one of the steps to starting a tax business and that is your required staff.

George has developed the following personnel plan for his company.

7.1 Company Staff

George himself will handle the management tasks and will initially hire the following people:

• 1 Accountant to maintain records
• 2 Tax Preparers to help him in tax related services
• 1 Assistant to assist in day to day work
• 1 Front Desk Officer to receive calls, and attend customers
• 2 Drivers for quick transport when needed while preparing taxes

7.2 Average Salary of Employees

Financial plan.

If you are going to start tax preparer business , you might be wondering that what do i need to start a tax preparation business ? It is luckily the business with the lowest startup costs and can be run successfully by a small team. But it doesn’t matter whether you are starting your business on a large scale, hiring too many people, investing too much on the advertisement, or on a small scale, you will need to prepare a financial plan. A financial plan maps the company’s expenses with the earnings and answers the questions like how the startup costs will be balanced, how the company will be able to meet its financial targets.

If you too are wondering how to start a tax service business , just be systematic and organized to cover all the steps successful people usually take. First prepare your business plan, like the one of ConsulTax that we have shown you here. Focus on your advertising strategy for business plan as well as a detailed financial plan to help you through the startup phase.

Now, we are providing the financial plan of ConsulTax which was made by George himself, we are showing just a rough estimation but still, you can have a lot from it.

8.1 Important Assumptions

 8.2 brake-even analysis.

 8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

  8.6 business ratios.

  Download tax preparation business plan sample in pdf

OGS capital professional writers specialized also in themes such as business plan for bookkeeping services , finance business plan , business plan for holding , insurance agency business plan , business plan for payday loan , credit repair business plan and many other business plan.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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R3 Homes LLC

Bend, Oregon

“It’s important to have experts who are in your corner and actually want the best for you. We love working with our Block Advisors accountant. She knows exactly what’s going on.”

Beyond Boundaries

Rochester, New York

“One of the anxiety pieces of starting this business was our taxes. Then we found our Block Advisors tax pro. Whether it’s setting up an online meeting or a quick phone call, they’re always available to answer all of our questions.”

• Up to 30% savings claim based on average savings based on national average fees for Federal Form 1040 plus Schedule C and one state filing in latest available 2020 survey conducted by the National Society of Accountants. All tax situations are different. Pricing will vary based on individual circumstances.
• Up to 50% savings claim based on average savings based on national average fees for Federal Form 1065, 1120, and 1120S in latest available 2020 survey conducted by the National Society of Accountants. All tax situations are different. Pricing will vary based on individual circumstances.

Unlimited help is here if you need it

Tax help included in Deluxe, Premium, and Self-Employed do-it-yourself products.

Put the power of AI to work and get real-time assistance at any step of your tax prep.

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After you complete your state tax return with the H&R Block state program, you will pay $19.95 per state (except NY) to e-file.*

State program pricing

*E-file is optional. Alternatively, you can print your return and mail it to the IRS.

**Includes unlimited business returns.

All prices are subject to change without notice.

State e-file not available in NH. E-file fees do not apply to NY state returns. State e-file available for $19.95. DE, HI and VT do not support part-year/nonresident individual forms. Most state software available in January; software release dates vary by state. State e-file for business returns only available in CA, CT, MI, NY, VA, WI.

• Spruce Rewards are powered by Dosh. Cash back offers and amounts may vary by user, merchant location and offer period. Check the Spruce app for offer availability. Cash back earned by qualifying purchases will be deposited in your Spruce Savings Account. See Spruce Rewards powered by Dosh Terms for details .
• Early access depends on when payment is submitted. Funds are generally made available when payment instruction is received, which may be earlier than scheduled payment date. 
• The Annual Percentage Yield (APY) is accurate as of 04/05/24. This rate is variable and can change without notice. Fees may reduce earnings. To start earning interest on your Spruce Savings Account, simply opt in through the Spruce app or at sprucemoney.com.
• Offer from H&R Block. Requires 1) opening of new Spruce Accounts between 1/1/23 and 6/30/23; and 2) $200 in qualifying direct deposits within 45 days of opening. Qualifying direct deposits are ACH credits, including direct deposits (but not tax refunds). Deposits that do not qualify are mobile check deposits, internal transfers, transfers within Spruce from external accounts, or cash transfers. $50 will be deposited within 14 business days after completing all requirements. Spruce Accounts may not be closed or restricted at payout. You are responsible for tax treatment of funds. Limit one per customer. May be modified or discontinued at any time.
• $30 in subsequent years for clients who maintain their accounts year-round. If, at the time you establish your Emerald Advance℠, you are a covered borrower as that term is defined in the Military Lending Act and its implementing regulations, including 32 CFR § 232.3 (a “Covered Borrower”), and so long as you remain a Covered Borrower, your annual fee will be waived.
• 35.9% APR applies during promotional period and for unsecured lines of credit. For full savings-secured lines of credit the APR is 9%. For more details, see the Terms & Conditions.
• You’ll receive up to a $20 reward for each new client you refer that purchases a 12-month bookkeeping service, for a maximum of $300. A new client is someone who did not utilize H&R Block or Block Advisors’ bookkeeping services within the past year. The reward will be delivered for each new client after they purchase a 12-month bookkeeping service with H&R Block or Block Advisors. Rewards will be provided on virtual cards and are only available to individuals who provide a valid email address.
• Valid for new clients at participating offices only. Applies only to original 2023 income tax returns. A new client is an individual or entity who did not use H&R Block or Block Advisors to prepare a 2022 tax return. Rewards will be provided on virtual cards and are only available to individuals who provide a valid email address. May not be combined with any other promotion. Void if transferred and where prohibited. No cash value. Coupon must be presented prior to completion of the new client’s initial interview. H&R Block employees are excluded. Expires April 10, 2024. OBTP# B13696 © 2023 HRB Tax Group, Inc
• The merchants represented are not sponsors of the rewards or otherwise affiliated with this company. The logos and other identifying marks attached are trademarks of and owned by each represented company and/or its affiliates. Please visit each company's website for additional terms and conditions. Present the Terms and Conditions anytime you're presenting specific gift card use details. Use your card everywhere Mastercard is accepted around the world. Card is issued by The Bancorp Bank, Member FDIC, pursuant to license by Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Your use of the prepaid card is governed by the Cardholder Agreement, and some fees may apply. This is not a gift card. Please note that prepaid cards are subject to expiration, so pay close attention to the expiration date of the card.
• Does not change IRS refund processing speed. Claim is based on making federal refunds available when payment instruction is received, which may be earlier than scheduled payment date. Depends on timing of the IRS’s payment file. Available only for federal refunds. May be changed or discontinued at any time.
• H&R Block Free Online accepts more forms for free than the TurboTax Free Edition. Learn more about H&R Block Free Online available forms .
• If H&R Block makes an error in your bookkeeping that requires a reopening of your books for any month, we will correct the error for the month the error occurred at no additional charge. Limitations apply. See blockadvisors.com/guarantees for complete details.
• In order to file your state return, you first need to purchase and install the corresponding federal edition.
• Enrollment in, or completion of, the H&R Block Income Tax Course or Tax Knowledge Assessment is neither an offer nor a guarantee of employment. Additional qualifications may be required. Enrollment restrictions apply. There is no tuition fee for the H&R Block Income Tax Course; however, you may be required to purchase course materials, which may be non-refundable. State restrictions may apply. The Income Tax Course consists of 63 hours of instruction at the federal level, 70 hours of instruction in Maryland, 81 hours of instruction in California, and 81 hours of instruction in Oregon. Additional time commitments outside of class, including homework, will vary by student. Additional training or testing may be required in CA, OR, and other states. Valid at participating locations only. Void where prohibited. This course is not open to any persons who are currently employed by or seeking employment with any professional tax preparation company or organization other than H&R Block. During the Income Tax Course, should H&R Block learn of any student’s employment or intended employment with a competing professional tax preparation company, H&R Block reserves the right to immediately cancel the student’s enrollment. The student will be required to return all course materials. CTEC# 1040-QE-2773 ©2023 HRB Tax Group, Inc. Program rules: Limit of 5 paid referrals per Experienced Tax Pros and First Year Tax Pros and 4 paid referrals for Receptionists. All referrals must be submitted between 4/1/2023 – 3/31/2024 using hrblock.com/offers/tax-pro-referral . Tax Pro referrals must be submitted prior to a candidate’s enrollment in the Income Tax Course (ITC) or starting the Tax Knowledge Assessment (TKA) and the candidate must successfully pass the appropriate course/test with a minimum grade (70% for ITC and 80% for TKA). Receptionist referrals must be submitted prior to hire date. Referred candidates must become active by March 31, 2024 in order for the referral to be paid. Rewards will be paid April 2024.
• Potential savings based on estimated tax savings of sole proprietor (Schedule C) users with over $40,000 in profit in 2022 by taking an S Corp election and filing in 2023, net of salary payments and payroll taxes. Election must generally be made by the due date of the return for the year prior to the year the S Corp election is to take place. Savings requires payment of a reasonable salary. Other requirements apply, and additional fees like tax preparation and payroll services are not included. Individual tax savings will vary based on your circumstances. All tax situations are different. Taxes are only one consideration in determining whether to form a business. You may want to seek the advice of an attorney to evaluate all of the relevant considerations. Block Advisors Business Formation Products and Services provide automated online tools that you can use to help meet your business formation needs and are not tailored to your particular situation. See our FAQs for more information .
• Comparison based on regular price on FreeTaxUSA.com as of 1/2/24. FreeTaxUSA is a registered trademark of TaxHawk, Inc.
• Total number of new customers using assisted or DIY tax solutions regardless of other prior tax preparer or method.
• Valid at participating U.S. offices for $150 off for full-service bookkeeping for new clients only. Valid 12-month engagement letter required. After the application of the discount in this offer, you will be charged monthly at the amount in the engagement letter. Discount may not be combined with any other offer or promotion. Void if transferred and where prohibited. Coupon must be presented prior to start of bookkeeping services. A new client is an individual who has not used H&R Block or Block Advisors for bookkeeping services. No cash value. H&R Block employees are excluded. Expires Dec. 31, 2024. ©2024 HRB Tax Group, Inc.
• Valid at participating U.S. offices for new clients only who complete and submit a 2023 personal income tax return between April 4 to 10, 2024.  While supplies last. Coupon code 76862 must be presented prior to completion of initial tax office interview.  Qualifying clients will receive their Domino’s® coupon on or before April 15, 2024. A new client is an individual who did not use Block Advisors or H&R Block office services to prepare his or her 2022 return. Void if transferred and where prohibited. No cash value. Offer ends April 10, 2024. OBTP#B13696-BR. ©2024 HRB Tax Group, Inc.   Domino’s Gift Card delivered by email. See gift card for terms & conditions. Domino’s® and the modular logo are registered trademarks of Domino’s IP Holder LLC.
• Our small business tax professional certification is awarded by Block Advisors, a part of H&R Block, based upon successful completion of proprietary training. Our Block Advisors small business services are available at participating Block Advisors and H&R Block offices nationwide.
• You’ll receive a $50 discount for each new client you refer that completes a 2023 tax return with H&R Block Expat Tax Services. A new client is someone who did not use H&R Block Expat Tax Services within the past 2 years. The discount will be applied for each new client after they prepare and pay for their tax return with H&R Block Expat Tax Services. Discounts will be applied to your next tax return prepared by H&R Block Expat Tax Services.

Year-round Tax Planning Service

Get expert help with your business tax strategy all year..

Add our Year-round Tax Planning Services 1 Go to disclaimer for more details , and your tax pro will work with you to ensure you get the best possible outcome, calibrate your annual income tax plan, and verify your quarterly payment amounts. Get three yearly one-on-one sessions for a one-time price of $99 — valued at $150.

Best for: Freelancers, contractors, or self-employed

Already have this service? Schedule your next appointment .

Get year-round expert income tax planning and more.

We’ll help you stay on track by:

Getting individualized care from your Block Advisors small business certified tax pro.

Maximizing cash flow through a P&L review, expense tracking advice, and more.

Minimizing tax payments and getting the best possible outcome on your income taxes.

Avoiding surprises by paying the correct income tax amount each quarter.

Getting helpful income tax tips and ensuring all your questions are answered.

Here’s how to get Year-round Tax Planning.

Make an appointment to get your taxes done.

Schedule a time to meet in person, via phone, or chat and get matched with a local tax pro.

Meet with your tax pro to discuss our Year-round Tax Planning Service.

Your tax pro preps your returns for you to review and approve. Ask to add regular check-ins.

Schedule your check-ins.

Plan your check-ins around your schedule and stay on track with our help all year long.

Already have Year-round Tax Planning Service?

Stay on top of your taxes by scheduling check-ins with a tax pro. You can connect in person or virtually.

Year-round small business expertise

Small business certified

Our tax pros receive specialized training for business tax preparation.

Save up to 30% † Go to disclaimer for more details on services

You could save up to 30% when you work with us instead of a typical accountant.

100% accuracy guaranteed

Rest easy knowing your taxes, bookkeeping, and payroll will always be 100% accurate.

2 million+ businesses

We help more than 2 million businesses each year get every credit and deduction they deserve.

• Potential savings based on estimated tax savings of sole proprietor (Schedule C) users with over $40,000 in profit in 2022 by taking an S Corp election and filing in 2023, net of salary payments and payroll taxes. Election must generally be made by the due date of the return for the year prior to the year the S Corp election is to take place. Savings requires payment of a reasonable salary. Other requirements apply, and additional fees like tax preparation and payroll services are not included. Individual tax savings will vary based on your circumstances. All tax situations are different. Taxes are only one consideration in determining whether to form a business. You may want to seek the advice of an attorney to evaluate all of the relevant considerations. Block Advisors Business Formation Products and Services provide automated online tools that you can use to help meet your business formation needs and are not tailored to your particular situation. See our FAQs for more information .
• See Terms and Conditions for details. H&R Block does not provide legal representation. Business tax audit support does not include reimbursement of any taxes, penalties, or interest imposed by tax authorities.
• With our Tax Subscriptions, you may prepay the fee for tax preparation of your 2023 federal tax return(s) to be prepared in 2024. The Tax Subscription locks in that fee and includes additional products and/or services, such as Peace of Mind® (only available on federal 1040 returns) and/or Business Tax Audit Support related to the 2023 federal tax return(s) as well as estimated quarterly tax payment services. Tax Subscription pricing is independent of, and may be higher than, our standard pricing. Fees are non-refundable except within the first 30 days following your purchase. Cumulative monthly pay options are higher than corresponding pay in full options. Additional terms and conditions apply. Available at participating locations.
• MyCorporation® is solely responsible for the services it provides to you, and you are responsible for setting up a separate account with MyCorporation and completing the incorporation documents. Block Advisors, a part of H&R Block, does not assist in preparing or filing incorporation documents. The choice of entity for a small business is an important decision, and financial calculations are only some of many factors to consider. The information on this site is not intended to be legal advice or specific to any situation. We recommend that you seek the advice of an attorney about the implications of entity selection. Neither MyCorporation nor Block Advisors provides legal advice.
• We do not provide legal advice. The choice of entity for a small business is an important decision, and taxes and other financial considerations are only some of many factors to consider. The information on this site is not intended to be legal advice or specific to any situation. We recommend that you seek the advice of an attorney about the implications of entity selection.
• Up to 30% savings claim based on average savings based on national average fees for Federal Form 1040 plus Schedule C and one state filing in latest available 2020 survey conducted by the National Society of Accountants. All tax situations are different. Pricing will vary based on individual circumstances.
• Comparison based on national average of accountant hourly fees in 2020 for “QuickBooks or bookkeeping advisory services” ($109) compared to our full-service bookkeeping hourly rate ($50). Data based on a 2020 survey conducted by the National Society of Accountants. Prices may vary.
• If H&R Block makes an error in your bookkeeping that requires a reopening of your books for any month, we will correct the error for the month the error occurred at no additional charge. Limitations apply. See blockadvisors.com/guarantees for complete details.
• Up to 50% savings claim based on average savings based on national average fees for Federal Form 1065, 1120, and 1120S in latest available 2020 survey conducted by the National Society of Accountants. All tax situations are different. Pricing will vary based on individual circumstances.
• Our Year-Round Tax Planning services cover the following income tax strategy and planning services that you may select for each of three one-on-one sessions: Business check-up, financial review, estimated quarterly tax payment review, expense tracking and recordkeeping education and advice, income tax filing readiness review, and income tax tips and education relating to accounting methods, cost of goods sold, tax deductions, withholdings, sales tax, and Form 1099. Additional terms and conditions apply. We are not attorneys or a law firm and we do not provide legal advice or legal services, nor do we provide financial advice or investment recommendations, as part of our Year-Round Tax Planning services. You should consult an attorney and/or your own financial and investment advisors where appropriate.
• Block Advisors and H&R Block services and pricing are available virtually and at participating locations. Additional terms and conditions apply. Your Block Advisor or H&R Block accountant may not be a licensed accountant.
• See https://www.federalregister.gov/ for information on businesses impacted by CTA.
• We are not a law firm or attorneys and our advice, products, and services are not a substitute for those of an attorney or law firm. This site provides general information that should not be construed as legal advice. You may want to consult with an attorney to confirm your BOI reporting obligations.
• For assisted tax prep, if Block Advisors makes an error on your return, we will reimburse you for any resulting penalties and interest. For DIY tax prep, if Block Advisors online tax preparation software makes an error on your return, we will reimburse you for any resulting penalties and interest up to a maximum of $10,000. Limitations apply. See https://www.blockadvisors.com/guarantees/ for full details.
• Discount valid for an original 2023 personal income tax return for new clients only, and may not be combined with any other offer or promotion. A new client is an individual who did not use Block Advisors or H&R Block to prepare his or her personal income tax return within a year from the date of the 2023 personal income tax return preparation. “File with a tax pro” offer available at participating U.S. offices. Additional terms and conditions apply.
• You’ll receive up to a $20 reward for each new client you refer that purchases a 12-month bookkeeping service, for a maximum of $300. A new client is someone who did not utilize H&R Block or Block Advisors’ bookkeeping services within the past year. The reward will be delivered for each new client after they purchase a 12-month bookkeeping service with H&R Block or Block Advisors. Rewards will be provided on virtual cards and are only available to individuals who provide a valid email address.
• Valid at participating U.S. offices for $150 off for full-service bookkeeping for new clients only. Valid 12-month engagement letter required. After the application of the discount in this offer, you will be charged monthly at the amount in the engagement letter. Discount may not be combined with any other offer or promotion. Void if transferred and where prohibited. Coupon must be presented prior to start of bookkeeping services. A new client is an individual who has not used H&R Block or Block Advisors for bookkeeping services. No cash value. H&R Block employees are excluded. Expires Dec. 31, 2024. ©2024 HRB Tax Group, Inc.
• The decision to form a business entity is an important one that includes many considerations. You may want to seek the advice of an attorney to evaluate all of the relevant considerations. Block Advisors Business Formation Products and Services provide automated online tools that you can use to help meet your business formation needs but are not specifically tailored to you or any particular situation.
• Example savings based on average estimated tax savings of sole proprietor (Schedule C) with $37,000 in profit in 2022 compared to a similar S Corp election paying a reasonable salary of $14,600. Savings are net of salary payments and payroll taxes. Additional fees like tax preparation and payroll services are not included. Individual tax savings will vary based on your circumstances. All tax situations are different.
• Our small business tax professional certification is awarded by Block Advisors, a part of H&R Block, based upon successful completion of proprietary training. Our Block Advisors small business services are available at participating Block Advisors and H&R Block offices nationwide.
• Example savings based on average estimated tax savings of sole proprietor (Schedule C) with $50,000 in profit in 2022 compared to a similar S Corp election paying a reasonable salary of $25,000. Savings are net of salary payments and payroll taxes. Additional fees like tax preparation and payroll services are not included. Individual tax savings will vary based on your circumstances. All tax situations are different.
• Example savings based on average estimated tax savings of sole proprietor (Schedule C) with $80,000 in profit in 2022 compared to a similar S Corp election paying a reasonable salary of $30,000. Savings are net of salary payments and payroll taxes. Additional fees like tax preparation and payroll services are not included. Individual tax savings will vary based on your circumstances. All tax situations are different.

See this report for information on the 2024 Impact of Women-Owned Businesses

See our Official Rules for more information.