Blog.Business development and beyond
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Home office and a better way to create videos for businesses.2018 -
Check out my new home office. I've never been the type to work from home but found it to be actually very helpful and efficient. With the widescreen monitor, it allows to easily edit videos and explore new ideas for other clients. I'm also explore new content to provide for Alpha B Group. I'm currently editing a new segment for Alpha B Group's social media advertisement. Finding time to make videos is very difficult. When working with Alpha B Group, I recall having to allocate a full day just for filming. It's difficult, not just timing, but we also had to book the conference room, setup lighting, and use other employees for help. All these cause delays and prevents uploading youtube videos more frequently. We added a new concept for Alpha B Group's video. Take advantage of time spent in traffic! The new concept allows to utilize the time in traffic to be more effective and also the lighting is perfect because the sun is facing the driver. Setup of the cameras are done with 2 GoPros on suction cups. Instead of using GoPros microphone, there is a lavalier mic hooked up. Here the actual items used: GoPro Hero 5 Black GoPro Hero 5 Session Sony Zoom H1 Handy Recorder Sony ecm-cs3 lavalier microphone |
Starting a Tax Business
July 26, 2017 via LinkedIn Publication
Why is the tax business a good one to get into?
The tax business is ripe for improvement and ready to be taken over by motivated individuals who can embrace change and technology. This industry has been around for many years where the first Income Tax Form in the United States first appeared in the early 1900s. As laws for taxes got more complicated over the years, so has the need for help. The problem is that this industry is slow at adapting to change and technology. Still in today's firms, methods that were used 10 years ago continue to be used. With technology and even more ways to create a better client experience, it's ready for improvement. The great thing is that it's also easy to get into the business.
The way I got started in the tax business was by accident. I had no prior experience in taxes and I never took an accounting class. I graduated with a Political Science degree but the opportunity to be part of a tax firm presented itself. I decided to take the opportunity and worked my way to learning the ropes - not only in taxes but business ownership. I saw a great upswing in what we can do to make the field better and took advantage of what other firms didn't see. There were so many resources available that allowed me to really grow the business. There were books on customer service, time management, and scaling. I read those first. I knew that I can always learn about taxes a little later but I definitely had to learn about business. Business owner first and accountant second.
When I first started, I saw that each client's situation was different. I noticed that I was getting a lot of the same type of clients and that's when I knew I had a niche. From there, I focused on that niche and catered my business development toward that client base.
Capital to start a tax office is low compared to other businesses. What I found was that a lot of tax preparers actually started their business later on in their life after their career. A lot were retired engineers or some were in auditing and switch to taxes (there is a difference in auditing vs. taxes). The best way to start is with a home office. The business doesn't need a big commercial place to start so utilizing a home office is a great way to cut down on cost. Really, the main things you need are:
If you have those 5, you can start a tax office. I know part-time tax preparers who use off-the-shelf tax software. It works perfect for a lot of basic tax returns. Once you reach a certain client level, changing to a new software that handles more complex returns would be easy.
Another great reason to get into the tax field is because it is a great way to have a side business and possibly transition to something full-time. Tax is a seasonal job. The busiest time would be from February to April (tax deadline) and a little bump of additional activity around September to October (extension deadline). Because of this, it allows for a lot of people to work their regular full time position but also work on taxes at night or on weekends easily. During the summer months when it's not busy, it's the best time to do business development, marketing, and networking. Because it is easy to get started into as a side business, it allows people to "test the waters" and possibly provide more services than just tax preparation. It can lead to accounting for businesses, business advising, or financial advising.
Getting the proper license is easy as well. A lot of people think they would need to take accounting classes, have a degree in accounting, or even have to be a CPA. It's all not necessary - though it would help. I didn't have any of those and I still was able to grow in the tax field. To get a proper license there are a couple basic ways 1) state license 2) Enrolled Agent.
I started off getting a state license to practice tax. Not all states mandate this but living in California, a license is required. Here are the states that have some kind of mandatory licenses:
All the other states do not have a mandatory license so anyone can be a tax practitioner in those states.
The second method is to get an Enrolled Agent license. This is a license that is issued by the IRS. There is a 3 part exam that a person must pass that applies to individual taxes, business taxes, and ethics. There are so many sites that help you study for this and I would highly recommend taking some kind of study course.
My first recommendation is to get the necessary state tax preparation license. This is only for the first initial couple years. My ultimate recommendation is getting the Enrolled Agent license. This is the license that allows you to do so much more for your clients - such as represent clients in a tax audit. It allows you to practice in any state so if you move to another state, you're allowed to still practice and start where you left off. Having this flexibility is great for those who like to move around. A big bonus is that if a clients move out of state, you can still assist them.
When I go around to other tax firms, I see a lot of the same things. It's usually one owner with very few employees. There's a head person that runs the firm and meets with clients. If they do have employees, they are usually doing back-end work like filing and simple computer entries. Most of these firms still use out-dated processes and technology. They still use old tape-calculators, use old software and operating systems, and still use the same practice from years ago. The reason is because accountants do not like change. They prefer to do the same thing over and over again like clockwork. Because of this, this industry is in need of change and it's so easy to differentiate yourself from other firms.
One of the biggest problems I see with other tax firms is their use of emails. With everyone busy with work, family, and social life, email is the best method to communicate with people effectively. A lot of tax practitioners still do not embrace effective communication over email. They may have an email address but would prefer to set an in-person meeting. This is so inefficient because now both client and tax preparer has to find an agreeable time for a scheduled meeting. Email is what makes being in this business so much easier. I can write everything I need my clients to know over email and we correspond directly over email at a convenient time for each of us. If it's really complicated where email might not be the best avenue to communicate, then we can either set a time to meet or even use Skype, Google Hangout, or Gotomeeting to screen share what I want them to see. This brings me to the next thing - using online tools.
I use Google Hangout, Dropbox, and many other online tools that allows me to effectively do my job for my clients. If clients want to send me tax forms, there are many different ways to send it to me safely without the hassle of faxing, mailing, or dropping it off. One great software I use to get client's documents is Heliodoc. It allows me to make a list of documents/questions I need, clients upload it to the same site, and the software tracks what is still missing with reminder emails.
The use of apps has also changed the way we can help clients. With everything at our fingertips anywhere we are, doing things for clients is so much easier. I have various apps on my phone for my clients, such as expense tracking, mileage tracking, various calculators, and a pdf creator. Having these on my phone with the combination of answering emails right away, has helped me efficiently respond to clients with their needs right away.
The next step is figuring out to get new clients to find you. An avenue that is very under utilize is online presence. So many firms have either a horrible or no websites, no social media, and no reviews from actual clients. This is the biggest room for improvement because in today's world of business, if you're not online you pretty much don't exist.
Having a website is important and having a work email from that same website is equally important. The website needs to have a clear indicator of the following:
For the work email, I think this shows a high level of professionalism when you have one from the same company website. If I see any professional (financial advisor, plumber) who uses a yahoo or, even worse, AOL email, I cringe. With so many services that can provide low cost websites, there's no reason not to have one. Companies such as Wix, Squarespace, and Weebly allows a person to create and update their own website easily.
Social media is so important at creating an online presence because it allows for updates about your industry and business. It's a great way for clients to know about new things happening in your field but also a great way for potential new clients to get to know more about your firm other than a basic website.
Review pages such as Yelp has shown to help business grow at an alarming rate. We knew that with the combination of our vision to providing great service and Yelp, it has created a wonderful platform for others to share their experience. Online review websites are the new method of word-of-mouth advertising. Before word-of-mouth was one person to another person. It was sincere and direct. Now with online review sites, it's one person telling their experience to a bunch of other people they don't know online. One review can potentially be read by hundreds of people and that review is worth so much in future earnings. One review written today will still be read tomorrow, next year, and 3 years from now. In that amount of time, hundreds or thousands of people have read it.
Use of LinkedIn, blogs, and YouTube. I'm all about sharing and creating useful content for people. I'm constantly looking to provide valuable information that will genuinely help people - even if they are not my client. I make these personable by explaining things in my own words in a way where I feel it's easier to understand. So many firms that I know just recite IRS code, verbatim. Who wants to read that? I don't even want to read that so why would my clients want to? Another thing that a lot of firms do is repost websites/blog that explains things. It's a great resource but it's not personable. A successful and lasting business provides great service and is also very personable. By writing your own blogs or creating your own video really shows the professionalism and care you have on the topic.
These are just the surface of getting into the tax field but it allows for a great start. Once things are up and running, the real fun happens with marketing, hiring, and growing.
The tax business is ripe for improvement and ready to be taken over by motivated individuals who can embrace change and technology. This industry has been around for many years where the first Income Tax Form in the United States first appeared in the early 1900s. As laws for taxes got more complicated over the years, so has the need for help. The problem is that this industry is slow at adapting to change and technology. Still in today's firms, methods that were used 10 years ago continue to be used. With technology and even more ways to create a better client experience, it's ready for improvement. The great thing is that it's also easy to get into the business.
The way I got started in the tax business was by accident. I had no prior experience in taxes and I never took an accounting class. I graduated with a Political Science degree but the opportunity to be part of a tax firm presented itself. I decided to take the opportunity and worked my way to learning the ropes - not only in taxes but business ownership. I saw a great upswing in what we can do to make the field better and took advantage of what other firms didn't see. There were so many resources available that allowed me to really grow the business. There were books on customer service, time management, and scaling. I read those first. I knew that I can always learn about taxes a little later but I definitely had to learn about business. Business owner first and accountant second.
When I first started, I saw that each client's situation was different. I noticed that I was getting a lot of the same type of clients and that's when I knew I had a niche. From there, I focused on that niche and catered my business development toward that client base.
Capital to start a tax office is low compared to other businesses. What I found was that a lot of tax preparers actually started their business later on in their life after their career. A lot were retired engineers or some were in auditing and switch to taxes (there is a difference in auditing vs. taxes). The best way to start is with a home office. The business doesn't need a big commercial place to start so utilizing a home office is a great way to cut down on cost. Really, the main things you need are:
- computer
- tax software
- printer
- internet
- proper license to practice
If you have those 5, you can start a tax office. I know part-time tax preparers who use off-the-shelf tax software. It works perfect for a lot of basic tax returns. Once you reach a certain client level, changing to a new software that handles more complex returns would be easy.
Another great reason to get into the tax field is because it is a great way to have a side business and possibly transition to something full-time. Tax is a seasonal job. The busiest time would be from February to April (tax deadline) and a little bump of additional activity around September to October (extension deadline). Because of this, it allows for a lot of people to work their regular full time position but also work on taxes at night or on weekends easily. During the summer months when it's not busy, it's the best time to do business development, marketing, and networking. Because it is easy to get started into as a side business, it allows people to "test the waters" and possibly provide more services than just tax preparation. It can lead to accounting for businesses, business advising, or financial advising.
Getting the proper license is easy as well. A lot of people think they would need to take accounting classes, have a degree in accounting, or even have to be a CPA. It's all not necessary - though it would help. I didn't have any of those and I still was able to grow in the tax field. To get a proper license there are a couple basic ways 1) state license 2) Enrolled Agent.
I started off getting a state license to practice tax. Not all states mandate this but living in California, a license is required. Here are the states that have some kind of mandatory licenses:
All the other states do not have a mandatory license so anyone can be a tax practitioner in those states.
The second method is to get an Enrolled Agent license. This is a license that is issued by the IRS. There is a 3 part exam that a person must pass that applies to individual taxes, business taxes, and ethics. There are so many sites that help you study for this and I would highly recommend taking some kind of study course.
My first recommendation is to get the necessary state tax preparation license. This is only for the first initial couple years. My ultimate recommendation is getting the Enrolled Agent license. This is the license that allows you to do so much more for your clients - such as represent clients in a tax audit. It allows you to practice in any state so if you move to another state, you're allowed to still practice and start where you left off. Having this flexibility is great for those who like to move around. A big bonus is that if a clients move out of state, you can still assist them.
When I go around to other tax firms, I see a lot of the same things. It's usually one owner with very few employees. There's a head person that runs the firm and meets with clients. If they do have employees, they are usually doing back-end work like filing and simple computer entries. Most of these firms still use out-dated processes and technology. They still use old tape-calculators, use old software and operating systems, and still use the same practice from years ago. The reason is because accountants do not like change. They prefer to do the same thing over and over again like clockwork. Because of this, this industry is in need of change and it's so easy to differentiate yourself from other firms.
One of the biggest problems I see with other tax firms is their use of emails. With everyone busy with work, family, and social life, email is the best method to communicate with people effectively. A lot of tax practitioners still do not embrace effective communication over email. They may have an email address but would prefer to set an in-person meeting. This is so inefficient because now both client and tax preparer has to find an agreeable time for a scheduled meeting. Email is what makes being in this business so much easier. I can write everything I need my clients to know over email and we correspond directly over email at a convenient time for each of us. If it's really complicated where email might not be the best avenue to communicate, then we can either set a time to meet or even use Skype, Google Hangout, or Gotomeeting to screen share what I want them to see. This brings me to the next thing - using online tools.
I use Google Hangout, Dropbox, and many other online tools that allows me to effectively do my job for my clients. If clients want to send me tax forms, there are many different ways to send it to me safely without the hassle of faxing, mailing, or dropping it off. One great software I use to get client's documents is Heliodoc. It allows me to make a list of documents/questions I need, clients upload it to the same site, and the software tracks what is still missing with reminder emails.
The use of apps has also changed the way we can help clients. With everything at our fingertips anywhere we are, doing things for clients is so much easier. I have various apps on my phone for my clients, such as expense tracking, mileage tracking, various calculators, and a pdf creator. Having these on my phone with the combination of answering emails right away, has helped me efficiently respond to clients with their needs right away.
The next step is figuring out to get new clients to find you. An avenue that is very under utilize is online presence. So many firms have either a horrible or no websites, no social media, and no reviews from actual clients. This is the biggest room for improvement because in today's world of business, if you're not online you pretty much don't exist.
Having a website is important and having a work email from that same website is equally important. The website needs to have a clear indicator of the following:
- service provided
- about me
- call to action
- easy to find contact information
For the work email, I think this shows a high level of professionalism when you have one from the same company website. If I see any professional (financial advisor, plumber) who uses a yahoo or, even worse, AOL email, I cringe. With so many services that can provide low cost websites, there's no reason not to have one. Companies such as Wix, Squarespace, and Weebly allows a person to create and update their own website easily.
Social media is so important at creating an online presence because it allows for updates about your industry and business. It's a great way for clients to know about new things happening in your field but also a great way for potential new clients to get to know more about your firm other than a basic website.
Review pages such as Yelp has shown to help business grow at an alarming rate. We knew that with the combination of our vision to providing great service and Yelp, it has created a wonderful platform for others to share their experience. Online review websites are the new method of word-of-mouth advertising. Before word-of-mouth was one person to another person. It was sincere and direct. Now with online review sites, it's one person telling their experience to a bunch of other people they don't know online. One review can potentially be read by hundreds of people and that review is worth so much in future earnings. One review written today will still be read tomorrow, next year, and 3 years from now. In that amount of time, hundreds or thousands of people have read it.
Use of LinkedIn, blogs, and YouTube. I'm all about sharing and creating useful content for people. I'm constantly looking to provide valuable information that will genuinely help people - even if they are not my client. I make these personable by explaining things in my own words in a way where I feel it's easier to understand. So many firms that I know just recite IRS code, verbatim. Who wants to read that? I don't even want to read that so why would my clients want to? Another thing that a lot of firms do is repost websites/blog that explains things. It's a great resource but it's not personable. A successful and lasting business provides great service and is also very personable. By writing your own blogs or creating your own video really shows the professionalism and care you have on the topic.
These are just the surface of getting into the tax field but it allows for a great start. Once things are up and running, the real fun happens with marketing, hiring, and growing.