I am interested in possibly starting my own tax business with bookkeeping. My hope is to be remote and work up to around 100-150 returns per year. My goal would be to make about 100,000 k a year. What would my overhead costs be approximately? Is it realistic to make 6 figures doing 100-150 returns a year? Of course this would depend greatly on how much I can charge per return.
Costs of a remote tax and bookkeeping business with 100-150 clients?
byu/Working_On_Tax_Stuff intax
Posted by Working_On_Tax_Stuff
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Doubtful 150 returns would be an avg of $667 per return. Only cost you have is software, your time and training. Make sure you have credentials EA or CPA.
It’s actually super affordable if you are bare bones, although that hurts you later when you grow (like it did me).
Software – $250-$500 a month (Tax Prep software and CRM like TaxDome are crucial for streamlining your work)
IT – $100-$500 a month (lower end of solo practice without employees/contractors)
Computer, monitors, equipment – initial 2-4K investment
Optional spending
Website – up to $100/mo ongoing or one-time fee of $1,000 – $5,000 depending on what you want/need.
Advertising – $100-$200/mo
Professional organizations – $50-$100/mo