You are in the right place if you are looking for the basic but simple steps to kickstart your very own tax consultancy business. Suffice it to say, whether you are a startup, advanced, or even a professional tax consultant, this guide is yours in general. Worry not in the time of challenge — tackling them is like gold and overcoming them without fear is bravery.
Keep in mind, the path of entrepreneurship is on the rise and there are more than 582 million entrepreneurs in the world. While many people start and take this road to entrepreneurship with great enthusiasm, there is only a handful of them who can sustain the business. Taking a business to the maturity or growth stage is not easy.
Entrepreneurs need to face a multitude of challenges associated with the task of running a business. Dealing with finances and funding is one of the most critical tasks that entrepreneurs often face. These challenges bring a great opportunity for professionals who are in tax consultancy or the accounting field.
By providing the best Tax consultation services, you can help them make wiser business decisions and take your profession to another level. Here is a handy guide that will answer all your concerns and help you determine how to start a tax consultancy business effectively in a few simple steps.
So, read on to learn more about this specialized tax profession.
What A Tax Consultancy Business Usually Entails
Technically, a tax consultancy business is a financially accredited agency that provides tax advice and support to individuals, businesses, and organizations on various tax issues. Their work typically involves preparing and submitting tax returns, researching tax laws, advising on tax planning, and representing clients in disputes with the tax authorities.
In most cases, tax consultants navigate complex tax regulations to minimize tax liability and address client objectives. One thing is for sure, a credible and qualified tax consultant advises and guides clients on tax-related matters.
They work with individuals and organizations to ensure they comply with tax laws and help minimize potential tax liability.
Typically, most professional tax consultants have a deep understanding of tax law and accounting principles. In fact, this role might be a good fit for detail-oriented, analytical individuals who enjoy working with numbers. Equally important, it’s not until recently (due to digitization) that many businesses now engage with virtual tax consultants to assist them.
Organizations that employ tax consultants include accounting firms, law firms, banks, and real estate organizations. These specialists can also maintain self-employment. That said, let’s now have a look at the best way to get started effectively.
How To Start A Tax Consultancy Business Effectively In Simple Steps
It’s, important to realize, that a majority of business owners who start their venture usually don’t have extensive knowledge, to begin with. Particularly, on how well they should position their business or what tax-saving strategies can be implemented that also have a viable business purpose outside of tax savings. That’s the need for tax consultants.
But, of course, many things can be looked up on the internet, however, much like getting a medical diagnosis, you eventually need to speak to a qualified person in regard to the best tax consultancy business. And, make sure the solutions you think will work won’t actually hurt you. Good tax strategies can actually lose you money if not well used.
The same case applies to going for the wrong tax consultancy business to handle your tax needs. That aside, as a startup tax consultancy business, it’s very important that you know and understands both who your potential clients are plus what their specific and unique needs/demands are. Also, have a sound idea of how the business works to merge the gaps.
You’d be surprised how many businesses neglect to file their taxes. It’s a headache, but it’s good to get them back on track and finding solutions to their tax problems. A lot of them do not know what to expect, and as a tax consultancy business, you can walk them through a process to get them back on the good side of the law — whilst, considering these tips:
1. Do Enough Research And Create A Plan
Before jumping into the tax consulting industry, you must read a bit about the industry. Try to find out the educational qualifications and certificates that will be required to become a tax consultant in your location. Every nation may have different certifications required for tax professionals — make sure you go through the details
And then, plan how you wish to proceed. You must even consult other experts in the industry to understand what a career in the tax consultancy business would look like. Whilst, bearing in mind, that every industry comes with a set of challenges and cons. Therefore, as such, it would be wise if you attend workshops or speak to the industry leaders.
Not forgetting, that this may also greatly help you to discover the main challenges and opportunities in the marketplace and the industry that you are targeting. Be that as it may, make sure you invest time in researching before planning a career in the industry. And also, meet all the requirements and proceed to start your tax consultancy business.
2. Make Sure You Have Some Business Know-How
Basically, tax consultants and planners need to have enough understanding of tax strategies — be able to communicate that clearly to their potential clients. And, for sure, there is also a lot of value in tax planning. If you can confidently demonstrate that value, you will excel as a tax consultant and, if it is your hope, as a partner or owner of your own firm.
After doing the basic research, you should also take time to understand the situation of competitors or the specific industry you want to be in. For instance, if you want to become a tax consultant for the hotels and travel industry, you must take time to learn the laws. The choices are completely up to you and you can choose between a specific niche or multiple areas.
All we intend to say is that you should be well-versed in the laws and regulations of the industry. Build on your tax knowledge to be ready for the complicated returns and situations that may arise later.
3. Meet All Tax Consultancy Business Legal Requirements
After shortlisting the idea and researching it, you need to look for the legal requirements that need to be fulfilled. Get the requisite licenses for your business and register with the IRS. Once you register your business and obtain all the licenses, you will be permitted to run the business legally. Not getting the required licenses can lead to repercussions later.
Besides this, you must also apply for the trademark of your company. Creating a trademark will protect your company from all kinds of plagiarism and copyright issues. It will also help in building trust in your customers and clients. You may get in touch with a business attorney to understand the tax business requirements and meet all the legalities to run it.
Keep in mind that every country will have specific requirements for registering the business. You must ensure that you are providing all the necessary details to prevent the risk of getting your profiles rejected. For instance, businesses will need a local sponsor to set up a tax consultancy business in Dubai — the local sponsor will hold 51% of the shares.
While, on the other side, you will be holding 49% of the remaining shares. The free zones have certain other laws for operating the business. Therefore, you must look for all the laws and regulations before beginning the process. Get in touch with an expert or a lawyer and provide the best VAT services to maintain credibility.
4. Fulfill All Basic Tax Consultancy Business Standards
After completing the above steps, it is time to start looking for effective ways to set up your business. Whereby, in this case, you will need to look for the right real estate, and check with the vendors for business supplies. Above all, you will need the right team members to run your business successfully and provide the best services to your clients.
To stay rooted to the ground, and beat even your competitors, make sure that you do thorough research first — conduct a well-arranged study case on what kind of business and services you aspire to give. Eventually, in the long run, this is something that will, ultimately, help you determine the likes of legalities and formalities that need to be fulfilled.
Make a budget and stick to that when setting up your business. Start by hiring the right people and building your team.
You may even consider hiring on a freelance or part-time basis to get started and keep everything within your budget. Besides this, you must even focus on building your website and using the right technologies to ease your work.
5. Market The Business To Get Your Word To Target Clients
Ultimately, your main business aim is to obtain more clients — begin by running ads or marketing your business. Look for different ways to create awareness of your business idea. The more awareness you create, the more visibility your business gets. It’ll help in targeting the clients which will help in generating revenue for your business.
If you have drawbacks like marketing budget constraints, in the beginning, you can even start by running an online business. With a team of remote workers, you can set up your business initially and change your plan depending on how it goes. You may leverage online advertising to increase your client base and improve the chances of getting discovered.
These are some of the basic steps you will have to follow to start a tax consultancy business effectively. Keep checking the tax laws and regulations to build your understanding of the process. You must also keep amending or changing the marketing strategies depending on the needs of the clients in your industry. Keep evaluating your performance and bring the changes to further improve your services as a tax consultant. Otherwise, just get in touch with us to get more help.
Is It Worth A Shot; Should You Give It A Try?
Of course, yes. As of Sep 2022, Glassdoor reports that tax consultants earn an average salary of $66,695 per year, with additional income of $4,771 per year coming from cash bonuses, commissions, and other special payments. The Bureau of Labor Statistics (BLS) projects tax accountant jobs and employment to grow by 6% as of 2021-2031.
In particular, as fast as the average for all occupations. And, as of 2021, the agency reports a median accountant salary to be way above $77,250. This means that specialization in a particular area of tax law or accounting can lead to higher earnings. Tax consultants who work in metropolitan areas may earn more than those who work in other locations.
But, eventually, industry experience can also lead to higher earnings. Not to mention, tax consultants with master’s degrees in taxation or accounting may earn more than other tax professionals. Always remember, that most clients will always reach out to see how they could do their various business undertakings, especially, better tax-wise.
Markedly, take classes that discuss tax cases both court and out-of-court cases. It’s not just about what is illegal, but what solutions you can recognize that would work great for a client. The universities like to focus on large corporations, but most of the tax strategies out there are applicable and very valuable to the backbone of the economy (startup business).
About The Author:
Sherin is a Digital Marketing Executive at MSATC, an award-winning advisory firm. A talented team of vibrant and dynamic minds working towards one goal — mentoring and forwarding ambitious entrepreneurs across the globe. I’m a computer science engineering graduate, but also a digital marketing buff with SEO Best Practices and content chops.
Not to mention, at MSATC, we also have a team of certified public accountants, chartered retirement planning counselors, and certified tax coaches. Some received their degrees in accounting from the best Universities — have also worked as auditors for some of the best organizations and taken managerial accounting roles in many small businesses.
In a nutshell, we are MSians — your perfect elite and award-winning advisory firm — a leading team of vibrant and dynamic minds. Perse, working towards one goal of mentoring and forwarding ambitious and driven entrepreneurs across the globe toward the peaks of success. Whilst, enhancing your ambition and defining your success (more about us) at large.