Historically this time of year for the Tax Preparer profession has been known as the “down time” or in the very least, the “quiet time” of the year. This time of year, for most paid tax preparers, is also known as the lean months where cash flow into your business can be minimal at best. Have you ever wondered, “Does it have to be this way?”

The simple answer is no. If you are proactive in how you do business and how you interact with your tax season clientele, you can grow your business during the January through April months, and bring in as well a steady flow of income throughout the rest of the year. By being the utlimate Professional Tax Preparer, you can provide a valuable service to those customers in this “quiet time” that will bring in the cash. The following are some ways you can do this.

Estimated Year Round Tax Payments

Depending on the type and structure of a company (LP, LLC, S-Corp etc.) each would have a requirement of when they send in tax information, or have taxes due throughout the year. As a Professional Tax Preparer and with you filing their yearly taxes, you can know which company you are servicing needs to pay which taxes when. With your recommendations to adjust these payments now, it will help your clients avoid over or underpayment penalties at years end. For those part-time self employed, these recommendations could be very timely so they don’t end up owing money.

Saving For Company’s Retirement Program

For those companies that you service that have one sort or another of a retirement program for themselves and/or their employees it is a very good idea to take a look at them mid-year. Many changes have happened in the last few years regarding IRA’s, 401(k)’s, pensions, and profit sharing programs, that it is important to review them to see if they are still performing as they were originally intended. This is also a good time to remind your clientele that as their business grows and changes they can be looking into setting up new programs for their company, and you can assist them to gauge the “what’s” and “wherefore’s” of rolling out their programs.

Take Advantage of Deduction Groupings

Be aware and keep your client company vigilant on keeping records on their expenditures. For the small business community this may take a monthly, maybe even a weekly reminder. So the company can stay eligible for the right deductions when their yearly tax filing comes along, there may be one or two types of deductions that have a threshold to reach to be eligible, or a cap to remain eligible for the deduction. Either way, by taking care of these tax-saving details, they will be more willing to contract for more and more of your services year round.

Changes In The Company Itself

Perhaps your customer has taken their business through a drastic change of some sort since April. Deaths and switching of company partners, ownership rights, even changing company structures (from a sole proprietor to a C-Corp for example) are all things that will change the taxes and their requirements of payment to the IRS and the state in which they reside. By being there, as their tax advisor, you will be able to help them navigate through these changes and mitigate their liabilities and possibly decrease their tax obligations with tax-saving suggestions.

Help Your Small Business Client Plan For Tax Savings

Here is another area that you can prove your worth to your clientele. Develop and help them along in their own customized plan to save on taxes. Several changes have happened in recent years that allow flexibility in expense deductions, carrybacks, carryforwards, employee benefit plans etc. Some small business may even be eligible for tax credits to help them recover the costs of starting up a company retirement plan. Timing of purchases, and assets can make a big difference on a company’s tax filings and some of these need to be timed just right within the year.

Remaining proactive with your Tax Business, whether part-time or full-time, you can remain that much more profitable 12 months in the year instead of just 4. When you treat those who you do business with, the way you want to be treated, with timely advice and cost saving suggestions, you are not only providing a value-added service that grows their company but you are also able to show them you care about their company’s financial health.

For over 25 years, Universal Accounting Center has helped people like you start their own tax practices. We recognize that 85% of the accounting opportunities are with small business so our curriculum is designed to help you learn small business accounting. Think back to our recommendation to increase your income by performing new services for new clients. When you learn small business accoutning you suddenly make yourself available to new clients whil increasing the number of services you can perform.

Give yourself a raise and become a Professional Bookkeeper today.