Once you have your training under your belt, your next step is to organize your business. Before tax season begins (January 1), you will want to organize your office, and order all of the materials that you will need once you start getting customers. You will want to visit the IRS website and download common forms that you will need such as instructions for the 1040, 1040EZ, schedules, and supplemental forms, as well as the 1040, 1040EZ, Schedules, and supplemental forms.
In addition to downloading forms you will need to stock up on the following supplies:
Paper
Toner
Paper clips
Stapler
Staples
Sticky flags
Envelopes
Labels
Pocket folders
Tax Preparation Software
CD-R or CD-RW
The Benefits of Tax Preparation Software
You do not have to invest in tax preparation software, as you can complete tax returns on paper. However, tax preparation software does have many advantages over a paper return. First tax preparation software asks for the needed information and automatically fills out the appropriate schedules and supplemental forms. When you are completing a tax return on paper, you have to know what forms will be needed for what situations and you will have to enter and transfer figures manually creating more situations for errors to occur.
The second advantage that tax preparation software has over paper returns is that it can be saved on a disc for future reference. Paper returns can get faded and damaged, while electronic returns can print out fresh clear copies on demand.
The third advantage that tax preparation software has over a paper return is that you can use it to e-file your clients’ returns. In some cases you can e-file for free or at a reduced fee by using a specific tax preparation software package and by registering with the IRS as an e-file provider. (Check the IRS website for details.)
The final advantage that tax preparation software has over a paper return is that it looks more professional. People who consider you to do their taxes will look at how professional you seem. They will want to know about your training and they will want to see an example of your work. If you can only show them handwritten returns with correction marks on them you will not come off as a very professional person, and as a result they may not want to do business with you. Tax preparation software gives the customer a sense that you are technologically evolved and that you will be able to provide them with an accurate and professional looking return.