Seven Transferable Skills for a Career in Tax Preparation
If you’re considering a career switch, looking for a way to be your own boss and start your own business, or investigating ways to add revenue to an existing business, tax preparation could offer a lot of opportunities for professional growth and development. And if you’re concerned you might not have the skill set to work as a tax preparer, reconsider. Tax preparation requires a lot of talents and capabilities outside of knowledge or interest in tax law.
Here are seven transferable skills that could make you an ideal candidate for running a tax preparation business.
1. Clear communication
If you work in a field like customer service, human resources, education, or even media, then you know how crucial communication is. If excellent communication is the hallmark of your skillset, a career in tax preparation might be a solid fit. Especially, if you can translate complex topics and ideas into words a layman can grasp. Tax preparers frequently have to explain the nuances of the tax code or break down the key points of new tax legislation to their clients. This is crucial to obtain necessary financial data for accurately preparing clients’ tax returns.
Plus, you’ll need the ability to win your clients’ trust. This is easy if you are a reliable and easy-to-access source of information on the latest tax laws. Consider researching critical tax deadlines, and strategies for reducing tax burdens.
2. Attention to detail
Whether you’re a bookkeeper who relishes double and triple checking your numbers, or a meticulous proofreader or editor, you might find your attention to detail useful in a career as a tax preparer. If checklists excite you, then you may enjoy the challenge of completing detailed returns with precision and ensuring their accuracy.
If your attention to detail extends to keeping files scrupulously organized, be they paper or electronic, then the document management of a tax prep business will appeal to you. And now, cloud-based tax prep software options make staying organized easier than ever.
3. Time management
Time management is a crucial skill in the field of tax preparation. After all, work runs around the clock from December through May. Project managers, operation managers, lawyers, writers, and editors all operate routinely under tight deadlines. Thus, if you like the adrenaline rush and challenge of performing complex tasks against the clock, tax preparation fits the bill.
Effective organization and time management are essential during tax season in particular. Here you’ll need to be able to manage a multitude of client files and prioritize tasking. Furthermore, you must adhere to strict deadlines, and ensure your clients’ returns are filed accurately and on time.
4. Knowledge of financial and tax law
Tax industry knowledge is definitely a plus if you’re looking to pursue a career in tax preparation. Thus, it can be a great business add-on or second career for a bookkeeper, accountant, financial adviser, or tax attorney. However, it’s not a necessity, nor is extensive education in math. More important is being able to understand basic bookkeeping and accounting and having an interest in expanding your tax knowledge.
You can enroll in several low-cost continuing education and certification programs to increase your expertise and grow your business. For example, many tax professionals choose to become an IRS Enrolled Agent. This certification grants you the ability to represent clients before the IRS and instantly boosts your credibility. In fact, it’s the highest credential the IRS awards tax preparers.
5. Willingness to learn constantly
A career in tax preparation requires constant continuing education. Tax laws change all the time, so it’s critical you stay up to date on your industry. If you already have experience in an industry where learning new skills, regulations, and laws is part of the job, tax preparation could be a good fit. Careers in law, finance, education, research, economics, and appraising all require the curiosity and willingness to stay on top of new information and trends that’s also critical to success as a tax preparer.
6. Customer service
If you already enjoy connecting with people and have experience providing excellent customer service, those skills will transfer well to working as a tax professional. Tax preparation is an interpersonal business, which means clients are far more likely to retain you as a tax preparer year after year if they feel you are personable, able to communicate clearly, and capable of problem-solving. Even if you’re looking to run a remote office, those customer service skills will still shine through in video calls, phone calls, email communications, and your general level of responsiveness and support to clients.
If you’ve worked as a loan officer, insurance agent, financial adviser, or in some other role that requires regular interaction with customers and the ability to meet their needs efficiently, then tax preparation could be an easy transition career for you.
7. Problem-solving
If you’re a project manager, a software developer, a data analyst, or a designer, problem-solving is a major part of your skill set. So, too, in the world of tax preparation. Tax preparers must routinely resolve complex tax issues for their clients. They often analyze financial documents, interpret tax laws, and develop strategies to help clients reduce their tax liabilities. This kind of critical thinking is crucial to success in a career as a tax professional. Here you will regularly encounter complicated tax legislation to provide solid counsel to clients.
If you’re ready to make a career change or set up shop in a new business as a tax preparer, there are a lot of opportunities for gaining the skills necessary to get started. You can gain expertise to handle basic returns relatively quickly. Take advantage of the IRS’ Annual Filing Season Program to start gaining the necessary education in tax prep. If you’re interested in how to become a tax preparer, learn more about setting up your own tax prep business with a variety of other online resources.
