Starting a Bookkeeping and Tax Preparation Business

Nobody likes to do taxes, and it can be ato become a multimillion-dollar business on this
particularly complicated task for those who own"seasonal" work alone.
their own business. Although most of yourFor your business clients you should set your
prospective clients will maintain their own weeklyrates so that you make at least $20 an hour.
bookkeeping, you can offer this additional serviceSince quarterly tax returns will come due for
to those who want it.different clients at different times (because they
To sell your service you should make a minimumare not all on the same fiscal schedule), you can
investment in a Yellow Pages listing under "Taxplan your time accordingly. To keep your rates
Return Preparation" (or "Bookkeeping Service"), ascompetitive, check the competition. Call a few of
well as placing small classified ads in your localthe bookkeeping or tax preparation services listed
newspaper. Personal visits to community retailersin the Yellow Pages and ask them their rates as if
are helpful, especially if you have the time toyou were a potential client.
strike up a conversation, mention what businessYour goal in this business is to establish a growing
you are in and leave a business card for thelist of clients. But even as a solo practitioner,
retailer's reference.handling only the number of clients you can
A natural outgrowth of this business is, of course,service by yourself, your income can easily top
individual tax return preparation. Most owners of$50,000 a year. If you wish to grow larger, you
businesses tend to use their business taxcould end up supervising an office full of trained
preparer for their personal returns. Althoughstaff members. Your initial investment to start
personal tax preparation is a seasonal business, itthis business need be nothing more than the cost
can be extremely lucrative. H&R Block has grownof a supply of business cards and letterheads.