Two things are certain in this world: Death is the first, and taxes is the second. As such, the need for tax consultation and preparation isn’t going to vanish any time soon. Those employed in this field experience sublime job stability.
Additionally, many tax consultants and preparation specialists perform their services remotely. Individuals who work from home can quickly become certified. If you’ve been searching for the ideal at-home job, then you may want to work with taxes!
You can even start your own tax preparation business with the help of services like TaxBiz. If you’ve been struggling to make ends meet, there’s no reason to wait to learn more!
What is Tax Consultation and Preparation?
Before you can begin earning money as a tax consultant or tax preparer, you’ll need to understand what these positions entail. Fortunately, both career options are relatively straightforward and easy to understand.
Tax consultants can prepare a client’s taxes, but they can also offer advice (consultation) concerning those taxes. Individuals who work as tax consultants often work with clients that have assets, including property.
Tax preparers collect a client’s financial information and then prepares their taxes for them. Consequently, most tax preparers only work during the tax season, unlike consultants who may work all year round.
Both positions require at least a basic understanding of taxes and accounting. However, only one of these options requires a college education.
Common Position Requirements
Becoming a tax preparer is a little bit simpler than becoming a tax consultant. However, both positions require at least a basic amount of education and training. Still, you don’t necessarily need a high school diploma for tax preparation.
Tax preparers must take and pass a 60-hour CTEC-approved course, purchase a tax preparer bond, apply for a Preparer Tax Identification Number (PTIN), and pay a nominal registration fee. After that, the sky’s the limit!
On the other hand, tax consultants must have a bachelor’s degree in addition to a series of credentials proving their understanding of taxes, accounting, and finance. Consequently, tax consultants may earn slightly more than tax preparers.
However, the earnings for these two positions are typically quite similar. In some cases, tax preparers may even out-earn tax consultants!
The average tax consultant earns about $38,000 per year. Tax preparers earn a similar amount, about $40,000 annually. Precise earnings vary from state to state, with those in high-income areas earning slightly more.
For example, a tax preparer in Hawaii might earn slightly more than one in Idaho. Hawaii has the highest cost of living out of all the US states and territories, while Idaho has a below-average cost of living. These factors influence total pay.
There are quite a few additional benefits to becoming a tax consultant and preparation specialist. For example, when you know the ins and outs of filing other people’s taxes, you’ll be able to prepare your own more quickly and affordably.
Still, getting a better deal on your own taxes is just the tip of the metaphorical iceberg. Generally, at-home tax consultants and tax preparation specialists can look forward to:
- A stable career (taxes aren’t going away any time soon)
- Competitive pay
- Remote work
- Career-boosting experience
Working from home also allows you to save a ton of money on transportation expenses, as well as work-appropriate attire. When you’re not preparing for the hour-long commute and investing in smart work suits or skirts, you’re saving.
If you’ve got a growing family, you might also enjoy the peace of mind that comes from working at home. You can keep an eye on the little ones and do small daily cleaning rituals to keep your tiny kingdom in tip-top shape, all while earning money.
So, how do you become a tax consultant? It may be easier than you think. If you’ve got at least sixty hours of free time, then you can become a tax preparation specialist.
How to Become a Tax Preparer
Becoming a tax preparer is a straightforward process. Still, individuals hoping to achieve this goal will need to study, perform well, and commit to their new career path.
Tax preparers may not need a bachelor’s degree, but they will need a comprehensive understanding of basic finance, mathematics, and tax preparation techniques. Most, if not all, potential tax preparers will acquire this knowledge while taking a course.
Taking and passing this initial informational course is the first step in becoming an at-home tax preparation specialist. After you’ve completed this step, you can choose one of two routes.
The first route involves seeking immediate employment. You can search for a reputable tax firm or agency seeking credentialed tax preparers, or you can submit your resume to a variety of remote, online agencies. Remote work may be preferable.
The independent route requires more money up-front but could allow you to attract a limitless customer pool, earning you way more money. Working for an agency may restrict your client load, but it could be a less costly and more reliable alternative.
Instead, you could start your own tax preparation business. This is entirely doable, especially with the assistance of a bookkeeping service like TaxBiz.
Work Online Performing Consultation Services
Anyone can perform tax preparation services from home and earn decent money doing so. You’ll need to invest the time and energy in taking a 60-hour, CTEC-approved tax preparation course.
Still, you could start your own tax preparation business with the help of services like TaxBiz. The sooner you start, the sooner you can begin learning and earning more.
Are you interested in earning money from the comfort and safety of your home but not interested in performing tax consultation services? No worries! Check out some of our work-from-home guides for more inspiration and information.