As one of the unavoidable certainties of life, income tax preparers have enjoyed a certain level of job security over the past decades. But now, as taxpayers have more options for filing their returns, preparers must diversify to stay competitive.
Luckily, preparing a client’s tax return is also an effective form of lead generation, especially when paired with credit repair training. Here are five benefits for tax preparers who get credit repair training.
1. Become a One-Stop Shop
Because of FinTech industry innovations, consumers can count on convenience when it comes to their financial services needs — including tax preparation. Tax prep clients who have become more reliant on personal finance tools like Mint or Quicken have found it easier to import personal data from these sites directly onto their tax returns. This process can be completed with a single click, rather than rehashing and researching the information manually, which is a tedious task.
You can bet your clients have gotten used to this user experience. They appreciate professional services that handle multiple products for them, and without having to exert much effort.
So, by turning your tax preparation business into a one-stop shop, your customers will value the convenience. Whether you start your partnership because of credit repair or from a tax preparation relationship, you will already have their financial information on record. So, when it comes time to tack on the next product, you’ll be ready to help them transition seamlessly.
2. Keep up With an Ever-Evolving Industry
Currently, taxpayers have three choices when filing their taxes:
- Tax preparation services like H&R Block
- Specialized accountants who deal with complex business returns
- Computer programs like TurboTax or Quicken
Computer programs, specifically, have made the tax preparing space more competitive and less costly for consumers. For instance, as part of the IRS Free File program, TaxAct and TaxSlayer became available at no cost to consumers.
As a result, preparers who depend on return and filing fees as a revenue stream have seen a major reduction in their incomes.
To adjust, it’s crucial to offer unique services, like credit repair training, so a tax preparer salary can remain reliable despite the changing market.
3. Add Value for Your Clients
The ability to assist with a client’s overall financial situation turns you from “just a tax preparer” to a trusted advisor. With the proper training and certification, tax preparers can easily reposition themselves.
As a trusted advisor, clients will not only be able to leverage your experience for more goods and services, they are also more likely to refer your business to their network, who may need similar services.
Additionally, those who can successfully integrate their tax business with other aspects of financial planning gain a competitive edge, which can increase your pipeline and revenue stream.
4. Make Money During the ‘Off-Season’
Even if your firm has remained unscathed by the evolution of the industry, you still must face the seasonal shifts of work. The January through April hustle may not be enough to sustain your living expenses year-round.
To accommodate, you should be adding new services to your repertoire as much as you can. Chances are your clients are already asking you financial questions that go beyond taxes anyway.
Adding credit repair to your list of services will help deepen the relationship with your clients and generate more consistent revenue. Becoming a credit repair specialist helps you use your financial sense and business mindset to help clients improve their overall financial well-being.
5. Pad the Cost of Regulatory Changes
Since 2011, the IRS started requiring tax preparers — who aren’t certified public accountants, enrolled agents, or tax attorneys — to complete 15 hours of continuing education and pass a competency test each year.
The IRS argues the new rules are a way to weed out less competent tax preparers. However, the new financial obligation to complete the requirements has hit small firms and individual proprietors hard.
If one cannot afford the continuing education they are being forced out of business.
As a way to buffer the cost of the new regulations, and keep consistent revenue flowing, it’s critical to diversify with additional services like credit repair training.
The benefits of adding credit repair to your portfolio are abundant. Not only is credit repair is a financial goal for many of your clients, it’s also a natural fit for your business. Learn more about how you, and your clients, can benefit from credit repair training.