Building Your Tax Business from Scratch

Olu Aladebumoye

Co-Founder

If you’ve ever felt overwhelmed about starting your own tax business from scratch, trust me, you’re not alone. Many tax professionals started with little more than a dream and a determination to hit their goals. Just like one tax pro shared in a Facebook group: “I started my business in a public library! I hit my first 100K in my fourth year!” It’s stories like these that inspire countless aspiring tax professionals to take that leap of faith.

In this post, we’re going to explore how you can build your tax business from scratch, drawing inspiration from the pros who have already done it. We’ll share stories of tax professionals who started with minimal resources and still grew successful, thriving businesses. Whether you’re working from home, starting with only a few clients, or unsure of where to begin, this guide will offer you practical tips, strategies, and motivation to push forward.

1. Starting with What You Have

Many tax professionals think they need a fancy office or expensive software to get started. But here’s the reality: many pros, including the one who built a 100K business in a public library, prove that you can start with next to nothing. Instead of focusing on what you don’t have, concentrate on maximizing the resources you do have.

For instance, if you already have access to IRS resources and a PTIN (Preparer Tax Identification Number), you’re ahead of the game. One user in the Facebook group shared that they started with just a PTIN and their tax business grew from there. Starting with a basic setup—whether that’s working from home, a co-working space, or even a public library—can help reduce overhead while you focus on building your client base.

Here’s a scenario: imagine you’re just starting out, working from your dining room table, and handling your first few clients. You might feel the pressure to appear more “professional.” But clients care more about the value you bring and how you handle their tax situation, rather than whether or not you have a brick-and-mortar office. In fact, transparency and a strong client relationship can work wonders. As one tax pro from the group put it, “Focus on quality over quantity.”

2. Finding Your First Clients

One of the biggest hurdles is finding your first clients. You may worry, “Where do I even begin?” The good news is, your initial clients are often right under your nose—family, friends, or referrals from your personal network. Another common tactic is using social media.

A quick tip from one of the pros: “If you want to build a client base quickly, focus on relationships, not just sales.” Starting with smaller clients and personal connections allows you to build a reputation that leads to bigger and better opportunities down the line.

3. Leveraging Technology

When starting your tax business, it’s essential to choose software that makes your life easier without overwhelming your budget. Many tax professionals have shared their experiences with software like TaxSlayer and QuickBooks, both praised for being beginner-friendly.

Automating your processes, even when you’re just starting out, can save you countless hours during tax season. One common challenge is staying on top of client communication and document collection. Using a CRM (customer relationship management) system or simple tools like Google Forms can help keep everything organized. As your business grows, you can scale up to more advanced systems, but don’t feel pressured to invest heavily in technology from the get-go.

Real-life scenario: You’re juggling a handful of clients, each needing reminders about upcoming deadlines or missing documents. Instead of managing all of this manually, imagine setting up automated email reminders or using tax software that provides status updates. This not only keeps your clients happy but also positions you as a pro who is on top of things.

4. Overcoming Challenges and Staying Motivated

Every tax pro has encountered challenges, from difficult clients to technology mishaps. But the key is persistence. Just like one tax preparer who shared their journey, hitting their first six figures after four years, success takes time, patience, and constant learning.

Consider this: tax season is overwhelming for every tax professional, whether you’re new or seasoned. A common mistake new tax pros make is trying to handle every single task themselves, leading to burnout. As one

A tip from experienced tax pros: start by mastering a few return types and gradually expand your offerings. Specializing in a few key areas, like personal returns or small business filings, will allow you to build expertise faster and attract clients looking for that specific service.

5. Marketing Your Tax Business

Marketing may seem intimidating, especially when you’re just getting started, but it doesn’t have to be complicated. Social media platforms like Facebook and LinkedIn are filled with tax professionals sharing their knowledge and engaging with potential clients.

This highlights a key strategy: engaging with communities instead of simply advertising. Share blog posts, answer questions, and offer free resources to show your value. When people see you as an expert, they are more likely to turn to you when they need help.

Conclusion:

Building a tax business from scratch is not easy, but it’s definitely possible with the right mindset and approach. Take inspiration from those who have walked the path before you—pros who started with nothing more than a PTIN or a dream. Focus on providing quality service, building relationships, and using technology to streamline your work. And most importantly, stay motivated. Every tax pro started somewhere, and with perseverance, you too can achieve your goals.

So, are you ready to start building your tax business?