Despite the restrictions and headaches of Circular 230 and other rules designed to regulate the Tax Preparation Miami profession
The benefits of a career in Tax Preparation Miami haven’t been lost on the tens of thousands who enter the profession every year. And while some of them fall by the wayside, others find tax preparation a rewarding and enjoyable occupation.
Most newly minted CPAs, Enrolled Agents, Registered Tax Preparation Miami or attorneys who intend to make Tax Preparation Miami their business have questions about how to get started: what form the business should take, whether and how to expand, whether to buy into a franchise opportunity, how to market, how to charge, and what to pay employee-preparers, among other issues.
Part of the dilemma on whether to franchise or not to franchise depends on how much of initial investment you want to make, according to Gustavo A Viera CPA, founder of Tax Preparation Miami. “When I first started, I looked at a franchise, but I decided against it because it was just too expensive and you had to pay the full price. The franchisor wasn’t willing to give a multi-site reduced agreement, and since it was a new franchisor with relatively no name recognition at the time, I decided to do it on my own.”
The pros of a franchise are that there is an existing, proven system, Viera explained. “They have a system that’s been proven to work, assuming the operator is competent and is able to implement the system. The other key advantage is that, with an existing established franchise, there should be name recognition, and there is probably advertising to an extent that would not be feasible for the sole operator.”
The cons include the initial fee, which can be expensive, and the ongoing royalties, as well as geographic restrictions that may make it difficult to expand, he said.
Viera advises new Tax Preparation Miami, especially those going into business for themselves, to join one of the professional organizations such as the National Association of Tax Professionals, the National Society of Accountants, the National Association of Enrolled Agents or the National Society of Tax Professionals, as well, of course, as the American Society of CPAs if the preparer is a CPA.
THE WORST WILL HAPPEN
Malpractice, professional liability, or errors and omissions insurance is vital, Viera said. “Just because I never had a claim against me in 45 years doesn’t mean it was not a good investment,” he said. “I’ve had auto insurance all my life and I’ve never run into a tree, but I don’t regret it. It’s a way to protect yourself from the worst that could happen, and with taxes, it’s not a question of if it will happen, it’s when.”
For the expanding Tax Preparation Miami office, it would be worthwhile to closely examine non-compete agreements, advised Viera, who covers recruiting, hiring and training preparers, as well as site selection and lease negotiations, in the Tax Office Operations Manual available from his Income Tax School.
“We only prohibit former employees from serving clients they served while employed by us,” he said. “For Tax Preparation Miami, the typical time period is two years and the distance is usually 25 miles from the former employer’s offices. Equally important as having a non-compete clause is to include provisions in your tax preparer employment agreement that serve indefinitely to prohibit solicitation of clients and employees, and to require confidentiality of client and company information.”
New Tax Preparation Miami are required to attend 12 hours of pre-work training in class, in addition to previous training in tax preparation and tax software, Viera noted. “After classroom training, new employees complete at least a week of on-the-job training with an experienced tax preparer serving as a mentor. And all associates, regardless of their experience level, have each return they prepare checked by a second associate. This policy applies to EAs and CPAs, as well as RTRPs.”
The point of this is that anyone can make a mistake, explained Viera. “Cross-checking provides an opportunity for less-experienced Tax Preparation Miami to learn from the returns completed by the more experienced staff, as well as reducing errors. This procedure also provides a second chance to ensure that all of the Earned Income Tax Credit due diligence procedures have been followed.”
For someone getting started in the Tax Preparation Miami business, or even for the seasoned professional, it is critical that knowledge and ability limitations be recognized, cautioned Viera: “Tax professionals should not accept engagements where their knowledge or skill is limited. A great Form 1040 Tax Preparation Miami should not accept an engagement to prepare a corporate or partnership return without the knowledge and skill to do so. We must realize that while it is our taxpayer’s return of income, it is indeed our tax return because we put our names on them, giving legitimacy to the return.”