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Pronto Tax Class Blog

How Much Money Can I Make Doing Taxes?

By Tim Frye

Everyone seems to be asking the same question recently. In fact, you probably just googled it and got this as a result. How much can I make doing taxes? Well, the answer is not as cut and clear as you may think. There are a multitude of factors that go into the determining equation of your total income from tax season. Are you beginning your venture under an apprenticeship or a company with a long standing history and capacious clientele? Or are you going it your own, buying your own tax program and building a client base from scratch? If so, how vast is your sphere of influence? Let’s delve into the factors involved in producing income doing other people’s taxes…

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Where can I do taxes and make a lot of money?

One of the most presciently obvious points when looking at ways to make money doing taxes is who am I working for? If you really want to make some big time scratch during your first few years in the game, it would be wise to THOROUGHLY research your company options and make the right selection. Maybe you can look for offices that historically have a reputation of proficiency, efficiency, and have a regular (and substantial) number of clients coming back. And maybe that company has a tax preparer leaving the office for one reason or another. Picture a bear in the prime spot of the river that has grown past his prime and is now slipping and not catching those salmon like he used to. One day he gives it up. Well if you are opportunistic and lucky enough, maybe you come around just at the right time to take his spot and snag as many salmon as your mouth can fit. A bit of a coarse analogy, but you get the idea. Your first choice, before going it on your own, should be to eye an office with a voluminous and steady amount of clients, and go from there.

What is the commission for doing taxes?

The second important factor in trying to make good money doing taxes is your commission rates. Some places can pay as high as 50% a tax return, and some can pay as low as 10%. Well, that may seem like an obvious choice until you evaluate the actual amount of traffic coming through the office. What if you only do three returns a day at a rate of 50% of the preparation fee at one office, and 25 returns a day at a 10% rate? This is why it is crucial to analyze the commission rates from all angles. Obviously you want to work at a place that offers the highest commissions, but if their metaphorical cupboard is bare then what’s the point.

How much can I make doing taxes on my own?

And then there’s the way of the old Wild West. Saddle up, take your freshly minted PTIN number, get the cheapest and most sufficient tax program and a computer and do it yourself. As many have come to know, the art of self-employment can present itself as a Picasso, or it can turn into abstract art representing your bloodied ego splattered on the office walls. The pro is you are going to pay yourself the highest commission rate possible,the con being you will also incur the operating costs that an employee would not encounter. Another aspect to review is to the size of your sphere of influence. How popular, and more importantly, how trustworthy and reliable are you in the eyes of your sphere of influence? If you are known by many, and regarded as being impeccable with your word, possessing savvy and business acumen, then the road is already partly lackered for you to succeed. However, if you are looked upon as a flake that has trouble with perseverance and self-promotion, you may want to slow your roll and think about working for someone who can do the grunt work for you,  who will in turn take their cut for their troubles.

Either way you go, the past is littered with failed tax preparers, but is also studded with those diamonds in the rough that stuck with it and get paid handsomely from January to April for their intestinal fortitude. Go to passirstest.com if you are looking for ways to stay on point year round.

 

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