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Tax Preparation

Definition & Overview
There are few things in life that people dread more than tax season: Government forms with strange alpha-numeric codes, deductions, dependants, social security withholdings-even in the best of cases, it's a jumbled mess to the uninitiated. Which is exactly why the field of tax preparation is so attractive. Indeed, "Every year there are millions of people who hire professional tax prepares to get their taxes ready and file their tax returns. It is a huge industry with a lot of opportunities for people with the right training" ( www.careeroverview.com ).

For additional information on online certificates please visit eLearners.com for details.

Benefits
The benefit of that training is that you will find yourself working in a field that is, for the most part, unaffected by the economy, perennially in demand, and attractive in the nature and rewards of the work. When considered in its entirety, from the training to the level of job satisfaction that many practitioners experience, tax preparation is an excellent field, and certainly worth your consideration.

And it is even more relevant today: In the coming years, most experts believe, the federal government will begin to require tax preparers to be certified. This will certainly have a positive impact on the field, as the level of professionalism and achievement-which are already quite high-will only go up. Therefore, now is the perfect time to begin your training, and to start working towards a certification in tax preparation. If you do it now, you are more likely to beat the rush when the new laws finally come into effect.

There are certification programs everywhere, and they are both affiliated with bricks-and-mortar schools as well as online companies and organizations. And as with so much else in these days of cyber-everything, the route you choose is determined more by your needs than anything else. In other words, whether you get your certification through a school or through the Internet (companies like www.PeoplesTax.com are leading the way in the field), your future as a tax preparation professional is sure to be bright.

Niche Areas
Tax preparation is far from a homogenous field, and the areas in which you may ultimately specialize run a surprisingly wide gamut. They include but are not limited to the following:

  • Individual income tax preparation
  • Business (Corporate, Partnership, and Sole Proprietor) income tax preparation
  • Estate, Gift, and Trust tax preparation

Types Of Associate, Undergraduate & Graduate Programs Available
A degree in accounting or finance will certainly prepare you for a career in tax preparation, but all that time and money is not really necessary to begin your career in the field. For unlike some other aspects of the worlds of money and accounting, a tax-preparing professional can earn the credentials necessary by enrolling in a certification or licensing program in tax preparation. The advantage of this is that you will spend less time in school and therefore be able to start earning money earlier, and that your training will be in the specific aspect of the field that is most relevant to you. For many people, a certification or licensing program is the best way to go.

Typical Admissions Requirements
Getting into a tax preparation program may not be as difficult as you think. In fact, it doesn't even require a background in mathematics. Simple arithmetic skills are required, of course, but what is really needed is people skills. In tax preparation, it's all about servicing and pleasing the client and that takes an outgoing personality.

Careers In This Field
Though it may initially seem as if there is only one direction in which to go with a license in tax preparation, there are a number of aspects of the field that you may pursue. And depending upon your goals and abilities, they may include tax preparation itself, management of an office, and some computer work relevant to the field. Really, within this one field there are any number of aspects that you may choose to specialize in.

Salary Ranges In This Field
"Most full time tax preparers have incomes in the $15,000 to $50,000 a year range. They can charge as much as $100 an hour for consultations, plus additional fees for each type of tax return they file. Seasonal workers are paid by the hour. Experienced and self-employed preparers can make as much as $25 to $50 an hour, but less experienced employees working for tax preparation services make a lot less…Many tax preparers are paid a commission based on collected fees and the sales of other services and financial products" ( www3.ccps.virginia.edu ).

However, because of the wide range of salaries and companies that employ tax preparers, it is worth looking into as many options within the field as you can. You may be pleasantly surprised by how much money you can earn.

Future Outlook
"The Bureau of Labor Statistics predicts that jobs will grow about as fast as average for tax preparers both nationally and in Virginia through 2014. Plans to streamline the tax system are put forward almost every year, but taxes always seem to become more complicated instead. People and businesses will continue to need help. It is possible, however, that even though we will need more tax preparers, we won't need all of them here in America. Basic tax preparation work can be outsourced overseas, and some tax preparation companies have begun to do this" ( www3.ccps.virginia.edu ).

However, because of the nature of the field-taxes are due every year, no matter what other external situations may arise-this is a field that will likely remain in demand regardless of what happens with outsourcing.

Resources

  1. www.redleafinstitute.org/index.cfm?page=taxpreps&category=articlestaxpreps&subcat=selectingtaxprep (Articles on Tax Preparation)
  2. www.natptax.com (National Association of Tax Professionals)
  3. www.nstp.org (The National Society of Tax Professionals)