Career in Tax Preparation?
I'm ready to jump from engineering (boring) into a full time career in tax preparation. I just love taxes to the core of my very being (don't bother telling me how weird I am, I know already). There are many options and I want to hear from career tax people which they feel is the best and why? I want pros and cons. I'm also interested in potential annual salaries. 1) Full time job with a large firm like H&R Block, but not as a manager or any other job where you don't do many actual returns. 2) Tax firm franchise owner...should I purchase an existing office or start a new one. 3) Hang out a shingle and start my own office or partner with someone else who has done this, learn from them, then buy them out. I have enough cash to weather a few years of low income, but I am not interested in an extended dry spell. Also, do I need a CPA degree or just an EA? What do you do in the summer months to stay busy? Thank you all for your time.
Public Comments
- HR&Block recently got fined or convicted for fraud. Stay away from those criminals. I say #3. Start your own business. Sounds like you are passionate and have a lot to offer. The only reason you should consider working for someone else is to understand all the pieces and parts of the business you will need to implement for yourself.
- You need to learn from a good firm with a good work ethic. EAs can make good money with the right experience. It really depends on whether you want to do taxes or wish to offer a more broad-based service. If you want the latter, you need to pursue your CPA.
- A tax preparer is a very limiting occupation. Return preparation houses work at the lower end of the spectrum and really don't deal with major tax issues that arise at the higher end of the income spectrum. Individual returns are basically a commodity that anyone can do. You may be bored with what you are doing but I guarrantee that you will be more than bored with what you are proposing. If you are really interested get a law degree and an accounting degree. Become a CPA and learn what is really exciting about tax planning rater than preparation.
- You won't make enough to survive w/ an H&R Block type (even as a manager). As a franchise owner you would probably get caught up in managing rather than preparing. To make enough year round, you could also offer accounting type services. If you can pick up some businesses to provide services for, you can do their recordkeeping, payroll, payroll taxes, sales taxes, etc. Then in addition, you work your tail off during tax season. It's more difficult to get the CPA (you need education and experience requirements). The EA is easier to obtain, & if you go into business for yourself it would suffice if the CPA is out of reach. The CPA is more generically accepted, however. The questions/answers from the last few EA exams area available online....check them out & see if it's for you: http://www.irs.gov/taxpros/agents/article/0,,id=137267,00.html
- I see you are already preparing taxes part time, and you are really serious about this. So go and get yourself certified or become an Enrolled Agent. You will, at a very minimum, need an Associates Degree in Accounting before you can sit for most exams (although maybe not for the EA exam). This may not take too long to accomplish if you already have a degree in engineering. Also, check out the N.S.A.'s website for the A.C.A.T. test requirements, which may be the quickest way to become an Accredited Tax Preparer. As Congress is going to mandate licensing for tax preparers, you will need to acquire credentials. But if you're that crazy about income taxes, maybe you should go for a career in accounting. Public accounting can be a very rewarding (year round!) career...as long as you don't take on more work than you can handle. Whatever you decide, good luck!
