Can I Operate My Tax Service Business Year-Round?
Many people associate tax preparation with a seasonal business that only thrives during tax season, from January to April. However, if you’re thinking about starting a tax service business, the good news is that you can operate it year-roundwith the right strategies in place. While the busiest period will always be around tax filing deadlines, there are several services you can offer throughout the year to maintain steady revenue.
Here’s how you can keep your tax service business running all year long:
1. Tax Planning Services
Tax planning is a valuable service that can be offered year-round, especially for individuals and businesses who want to minimize their tax liabilities. Clients often need help preparing for major life events, such as:
- Buying a home
- Starting or selling a business
- Saving for retirement
- Managing investments
By providing tax planning advice, you can help clients make informed decisions throughout the year to reduce their tax burdens when filing season arrives. Offering quarterly or annual tax check-ins is a great way to engage with clients outside of tax season.
2. Bookkeeping and Accounting Services
Many small business owners and freelancers need ongoing bookkeeping and accounting support to keep their financials in order. Offering these services in addition to tax preparation helps create a steady income stream all year.
Services like:
- Monthly or quarterly bookkeeping
- Profit and loss statements
- Payroll management
- Financial forecasting
This not only adds value to your business, but it also strengthens client relationships. When tax season arrives, you’ll already be familiar with their financial data, making tax filing easier for both you and your clients.
3. Tax Resolution and IRS Representation
Tax problems don’t just occur during tax season. Clients who face issues with the IRS may need year-round assistance. If you’re an Enrolled Agent (EA), Certified Public Accountant (CPA), or attorney, you can offer tax resolution services such as:
- Audit representation
- Back taxes negotiation
- Installment agreements
- Innocent spouse relief
Even if you’re not an EA or CPA, you can partner with one to provide these services. IRS issues can crop up at any time, so this can be a profitable way to keep your business active during slower months.
4. Extension Filing and Amended Returns
Many individuals and businesses file for tax extensions, pushing their deadlines to later in the year. Offering extension filing services allows you to keep working on tax returns after the April deadline, often extending into the fall.
Additionally, some clients may need to file amended tax returns if they realize they’ve made a mistake on a previous year’s filing or receive additional information after submitting their return. These services are needed throughout the year and offer opportunities for additional revenue.
5. Small Business Services
Small business owners need more than just tax filing help once a year. By providing a range of small business services, you can build long-term relationships with business clients who will return to you for advice, bookkeeping, and tax support. Consider offering services such as:
- Quarterly estimated tax filings: Many small business owners need to pay quarterly estimated taxes, and they may need help calculating and filing these payments.
- Sales tax compliance: Help clients comply with state and local sales tax regulations.
- Business entity selection and setup: Assist new entrepreneurs with choosing the right business structure (LLC, S-Corp, etc.) for tax efficiency.
6. Financial Coaching and Consulting
If you’re knowledgeable in personal finance or investments, you can expand your tax business to include financial coaching or consulting services. Many clients seek ongoing financial guidance, especially regarding:
- Retirement planning
- Investment strategies
- Budgeting and savings advice
Offering these services gives you an opportunity to stay connected with clients throughout the year while helping them improve their overall financial health.
7. Marketing and Tax Education
Another way to stay relevant year-round is by offering tax education to your clients. Host workshops, webinars, or create online content that educates individuals and small businesses on topics like:
- Tax law changes
- Maximizing deductions
- Record-keeping tips
By positioning yourself as an expert in the field, you build trust with potential clients and keep your name top of mind throughout the year. You can also use marketing strategies to offer early-bird specials, mid-year tax planning, and promote any additional services you provide.
8. Stay on Top of Continuing Education
Tax laws change frequently, and continuing education is important for maintaining your certifications and staying up-to-date with IRS regulations. The Annual Filing Season Program (AFSP), for example, is a voluntary IRS program that offers continuing education and helps you stand out in a competitive market.
By dedicating time throughout the year to learning about tax law changes and new software updates, you’ll improve your service offerings and stay ahead of the competition. These new skills can also be marketed to your clients, showing them that you’re well-versed in the latest tax strategies.
Conclusion
Yes, you can absolutely operate your tax service business year-round! By diversifying your service offerings—such as tax planning, bookkeeping, IRS representation, and financial coaching—you can generate consistent revenue even outside of tax season. Offering these services not only helps grow your business but also builds long-term relationships with clients who trust you for their tax and financial needs throughout the year.