Discussion:Work at Home as a Tax Preparer

I'm new to the TaxAlmanac discussion forum. I've been preparing tax returns for approximately 3 years for family and friends, but I'm ready to expand my horizons. I'm in the process of having a website developed for my tax preparation services. My issue is that I'll be working from my home and I don't like the idea of strangers coming to my home. I thought about going to pick up their tax returns, but just as I'm hesistant about strangers coming to my home, I'm sure that they'll be reluctant to have a tax preparer that they don't know, coming to their home as well.

Do any of you have any suggestions on how I can increase my clientele? I thought about them emailing, mailing, or faxing their info to me, but what is the best way for me to receive payments for services?

I am out in Las Vegas and I work out of my home as a tax preparer and enrolled agent. Back in 1993 when I started I was living off the beaten path and was actually going to client's homes and setting up and doing returns in their home out of not having a place to meet. When I moved out to Vegas I set up an office in my home and slowly but surely the clients started to come by that weren't out of state of course. My situation is a little different as I mostly do out of state returns, having carved a niche for myself as a tax professional specializing in the entertainment industry from being a player myself, so I am a little more sought out in a specific industry moreso than someone just thumbing through the yellow pages and coming to me with a return that is pretty general. Every single client that comes by my home office is very reputable and friendly, so I don't worry much about getting paid or having strangers in my home that might try to scam me. Out of almost 300 clients I have generally 10-15 that are late pays and 3 that don't get around to paying me at all, but I'm pretty happy with my 275 that are no problem at all. When you have a home office, you definitely need a specific place to go to with your clients that you can shut the rest of the house off including spouse and screaming kids, and have a place that is very neat and comfortable, no spreading out on the kitchen table to try and do returns. My office is 11*13 and when my tax business doubles (it has from 2006-2007) a few more times, we'll be moving to a bigger house where my ideal home office space will be 20*15. Anyway, things to do early is to get your named listed in online yellow pages and get a website going if you don't have one already, and, also know your limitations and be stand-up enough to be able to send a client somewhere else if you get in over your head. That being said, you should do all you can to start learning and adding new services up each year. One year I added a website, then an organizer, then efile, the next I made logos, the next became an enrolled agent, the next I designed my presentation of returns with specialized folders, and etc. You should never be comfortable with where you are, as I'm sure that even Riley takes steps to improve each year and he is one of the best and brightest on this site. A lot of this is rambling but I hope that you got a little bit out of what I've put here. Know that a home office can definitely work without having a storefront and where people used to shy away from business owners working out of their home, now it's not that big a deal. Let me know if you have specific questions by emailing me at musiciantax@yahoo.com, and know that you can also post questions on here and literally have thousands of people see your question, out of which 50 or so will write and give you great advice, sort of like an online tax family! Talk to you soon, get started now getting ready for tax season so you'll have your listings and website in place, good luck!

Donnie Castleman Home-office-based Tax Professional Las Vegas

In 2002 we moved our office 200 miles...and retained 98% of our clients, partly because they were used to simply mailing us their info. The service mattered, not the address they mailed their stuff to.

At the time of our move, we also decided to lease office space. I can say I do like it better, as it provides more separate between home & work. That's especially important for those of us who live and work together.

What software are you using now?

Repeat clients either call me first or e-mail me to setup the appointments.

IshaqInagpurwala 17:56, 19 November 2007 (CST)

I found the follwing helpful:

1.)Don't hesitate to ask for referrals, however, i believe there is an art on how to go about getting referrals, if you you just come out of left field and say "uh, uh,do you know anyone who needs a tax accountant?" i'm not sure that's going to get you the best response. A good rule of thumb is to do a good job on your current clients, keep them happy and they will spread the word.

2.) send out personalized letters to potential clients. maybe something that starts with " our mutual friend John Doe gave me your contact info and he mentioned you may be in need of a quality tax professional you can trust......"

3.) keep in contact with former co workers/employers and let them know you are on your own and if they have any clients that are too small for their firm, that you would be grateful if they refer the client to you.

4.) any time you get a referral be sure to send the referring person a thank you note/card and let them know you appreciate it.

5.) try to be a social bug. don't talk about yourself, ask as many questions about other people as you can, and they will feel good you are asking them about their life (as most people today cant stop talking about themself and never ask how you are doing). you may be surprised by the end of the night they say "oh, by the way, what do you do. and that's when you let them know you are a tax professional and you have your own practice. Now it doesnt come off as much as a sales pitch.

6.) get involved in activities. i.e. coach a sports team, get involved at your kids school, and meet other people who may need your services.

7.) i think the home office is fine as long as you designate a specific area to the tax practice and it looks professional.

8.) physically drop a short and sweet letter in mailboxes in your neighborhood and spread the word. worst case scenario is you get in some exercise walking. doesn't cost you a penny, except for paper.

That being said, i'm still far from being a pro at picking up new clients and i'm still trying to learn as much as i can in order to go about increasing my clients and fees. i guess it's all a learning process.

good luck!

Will

John Huddleston http://huddlestontax.com

one more food for thought.

try not to spend too much money on unneccessary expenses your first year or two, as tempting as it might seem. such as maybe foregoing that nice flat screen monitor until next year or instead of spending $300 on business cards maybe just spend $100 at staples, etc. or instead of giving your clients a nice fancy folder just get the basic ones.

i cant think of any really good examples, but what i'm trying to say is don't go too nuts spending on something that might not be absolutley necessary yet and/or might not be a proven method (for example, my first year i spent money on flyers, and on ads in penny savers, etc. and these types of marketing just don't seem to work at least for me anyway.

i would say it be good idea to even run some of your ideas/brainstorms on this board and you can get feedback as well as maybe help others at the same time.

what i'm tryig to say is.......you may want to keep your costs down until you get enough clients.