tax preparation business plan

Tax Preparation Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Financial Service Industry » Accounting, Bookkeeping and Tax Preparation

Are you about starting a tax preparation business ? If YES, here’s a complete sample tax preparation service business plan template & feasibility report you can use for FREE to raise money .

In case you didn’t know, there are loads of households, small businesses, mom and pop businesses, amongst a few without the faintest idea of any tax preparation skills. These businesses struggle with their tax concerns a lot. Research shows that one of the reasons why many small businesses remain small and sometimes close shop is not because they don’t have clients or capital to run the business but because they fail to keep their books and manage their tax properly.

If you are an accountant or a tax consultant, then you can leverage on this read to start your own tax preparation services Business.

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You can be sure that your services would always be in demand by those small businesses that can’t afford to hire a full time accountant or tax consultant. They know that it would save them cost and one good thing about it is that you can handle up to 20 clients per time depending on how organized and hardworking you are.

A Sample Tax Preparation Service Business Plan Template

1. industry overview.

The financial services industry is indeed a very broad industry and one of the active lines of businesses in the industry is tax preparation services business.

Tax preparation services is all about helping individuals and small businesses provide income tax compilation services, income tax return preparation services, and other tax return preparation services; it is part of the process of financial accounting in business.

In recent times, the Tax Preparation Services industry went through a slight downturn during the recession due to a decline in national employment and of course a decrease in disposable income. However, the industry rebounded immediately after the recession phase as the national unemployment rate fell, and revenue increased as more Americans were required to file tax returns.

At about same period, the tax preparation services industry landscape begun to change, with consumer preferences increasingly trending toward establishments that offer online filing services options.

Despite the fact that the recent improving economic conditions are expected to support the growth of revenue generated in the industry, some tax preparations’ performance will be stunted, as online tax preparation service providers pose a big threat traditional brick-and-mortar firms.

The Tax Preparation Services industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, France, Italy, Holland, Switzerland, Japan, China, Germany, and Canada et al.

Statistics has it that in the united states of America alone, there are about 118,890 registered and licensed Tax Preparation Services firm responsible for employing about 292,718 and the industry rakes in a whooping sum of $10 billion annually.

The industry is projected to enjoy 4.5 percent annual growth. The establishments with the lion share available in this industry in the United States are H & H Block Inc., Intuit and Jackson Hewitt.

According to a report published by IBISWORLD, it was observed that households in all socioeconomic groups across the United States use the services of tax preparers. As a result, industry establishments and revenue are distributed in line with regional population.

Many people use the tax preparation firm nearest to them, out of convenience. Which is why when an area is underserved, more firms move into that area to stake a claim in the market.

In the same way, tax preparation firms tend to move locations when the competition is too high and profit margins begin to suffer.

Approximately 85.1 percent of operators in this industry are non-employers that do not have the capacity or market power to provide services beyond their own neighborhood. While some of these firms are part of a national network, they primarily serve local consumers.

One thing is certain about starting a tax preparation services business, if you are able to conduct your market research and feasibility studies , you are more likely not going to struggle to secure clients because there are always individuals, households, mom and pop shops, start – ups and even corporate organization who would want to hire your services.

Lastly, with tax preparation services business, you can afford to partner with other smaller firms that are into financial related services.

You can partner with accounting and bookkeeping consulting firm, you can partner with auditing firms and you can partner with human resources consulting firms et al. The bottom line is that, if you have a robust network and you are well positioned, you can indeed maximize your tax preparation services business.

2. Executive Summary

Henry Murdock Tax Consulting, LLP is a registered and licensed financial consulting firm with strong bias in tax preparation services and will be based in Saint Paul – Minnesota.

The firm will handle all aspects of tax preparation related services; services such as income tax compilation services, income tax return preparation services, basic tax preparation services, standard tax preparation services, full-service tax preparation services, tax-related financial products and other related tax return preparation services.

We are aware that to run an all – round and standard tax preparation services firm can be demanding which is why we are well trained, certified and equipped to perform excellently well. Henry Murdock Tax Consulting, LLP is a client – focused and result driven tax preparation services firm that provides broad- based services at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer standard and professional tax preparation services to all to our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they hire our services.

At Henry Murdock Tax Consulting, LLP, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the financial consulting services industry with bias in accounting, bookkeeping and payroll administration.

Henry Murdock Tax Consulting, LLP will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become the leading brand in tax preparation services line of business in the whole of Saint Paul – Minnesota, and also to be amongst the top 20 tax preparation services businesses in the United States of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Saint Paul – Minnesota is the right place to launch our tax preparation services business before sourcing for clients from other cities in The United States of America.

Henry Murdock Tax Consulting, LLP is founded by Henry Murdock and Lucy Kent, his business partner for many years. The organization will be managed by both of them since they have adequate working experience to manage such business. Henry Murdock has well over 5 years of experience working at various capacities within the financial cum tax consulting services industry in the United States of America.

Mr. Henry Murdock graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MSc.) and he is a chartered account with background on taxation. Lucy Kent has ample experience in the area of tax consulting and financial auditing.

3. Our Products and Services

Henry Murdock Tax Consulting, LLP is going to offer varieties of services within the scope of the tax preparation services industry in the United States of America. Our intention of starting our tax preparation services firm is to work with individuals, household, smaller organizations (start – ups and mom and pop shops) and also well – established corporate organizations who would want to outsource their tax preparation concerns.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offering are listed below;

Income tax compilation services
Income tax return preparation services
Basic tax preparation services
Standard tax preparation services
Full-service tax preparation services
Tax-related financial products
Other tax return preparation services
Other financial consulting and advisory related services

4. Our Mission and Vision Statement

Our vision is to build a tax preparation services brand that will become the number one choice for individuals, household, smaller businesses and corporate clients in the whole of Saint Paul – Minnesota.
Our vision reflects our values: integrity, service, excellence and teamwork.
Our mission is to provide professional, reliable and trusted tax preparation services that assist individuals, household, start – ups, corporate organization and non-profit organizations in organizing their tax returns related concern.
We will position the business to become the leading brand in the tax preparation services line of business in the whole of Minnesota, and also to be amongst the top 20 tax preparation services firms in the United States of America within the first 10 years of operations.

Our Business Structure

Ordinarily we would have settled for two or three staff members, but as part of our plan to build a standard tax preparation services firm in Saint Paul – Minnesota, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of tax preparation services business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Saint Paul – Minnesota as long as they are willing and ready to work with us to achieve our business goals and objectives. Below is the business structure that we will build Henry Murdock Tax Consulting, LLP;

Chief Executive Officer
Tax Preparation Administrator

Admin and HR Manager

Marketing and Sales Executive

Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization

Tax Preparation Consultants

Handle income tax compilation services
Handles income tax return preparation services
Responsible for handling basic tax preparation services
Handles standard tax preparation services
Responsible for handling full-service tax preparation services
In charge of all tax-related financial products
Handles other tax return preparation services
Responsible for other financial consulting and advisory related services
Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Designs job descriptions with KPI to drive performance management for clients
Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carrying out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
Oversees the smooth running of the daily office activities.
Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
Writes winning proposal documents, negotiate fees and rates in line with company policy
Responsible for handling business research, marker surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company
Responsible for preparing financial reports, budgets, and financial statements for the organization
create reports from the information concerning the financial transactions recorded by the bookkeeper
Prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company

Client Service Executive / Front Desk Officer

Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
Manages administrative duties assigned by the manager in an effective and timely manner
Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
Receives parcels / documents for the company
Distribute mails in the organization
Handles any other duties as assigned my the line manager

6. SWOT Analysis

Henry Murdock Tax Consulting, LLP engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured tax preparation services firm that can favorably compete in the highly competitive financial consulting cum tax preparation services industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Henry Murdock Tax Consulting, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Henry Murdock Tax Consulting, LLP;

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent tax preparation jobs. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new tax preparation services firm, it might take some time for our organization to break into the market and gain acceptance especially from top corporate clients in the already saturated tax preparation cum financial consulting services industry; that is perhaps our major weakness. So also we may not have the required cash to give our business the kind of publicity we would have loved to.

Opportunities:

The opportunities in the tax preparation cum financial consulting services industry is massive considering the number of individuals, households, mom and pop businesses, start – ups and of course corporate organizations who can’t afford to do without the services of tax preparation service providers. As a standard and well – positioned tax preparation service provider, we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a tax preparation service firm operating in the United States are unfavorable government policies , the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

Market Trends

The financial consulting services industry of which tax preparation services is a subset of is indeed a very large industry and of course it is one industry that works for individuals and businesses across different industries. If you are conversant with the trend in the financial consulting services industry,.

You will agree that loads of mom and pops, businesses, and start – up ventures that do not have the capacity to hire chatter accountants to handle their tax returns concern would naturally hire the services of tax preparation services providers who would usually charge them service charge.

Relatively, it is cheaper and less stressful to hire the services of tax preparation service providers as against employing a qualified accountant or tax consultant. In recent times, the Tax Preparation Services industry went through a slight downturn during the recession due to a decline in national employment and of course a decrease in disposable income.

However, the industry rebounded immediately after the recession phase as the national unemployment rate fell, and revenue increased as more Americans were required to file tax returns. At about same period, the tax preparation services industry landscape begun to change, with consumer preferences increasingly trending toward establishments that offer online filing services options.

Another notable trend in the tax preparation cum financial consulting services industry is that in the last five years, the industry has performed impressively as a large reduction in unemployment boosted the revenue generated in the industry.

So also, the tax preparation cum financial consulting services industry has benefited from the advancement of online and computer tax preparation services, with new cloud-based offerings providing a new revenue stream for operators, and attracting new customers. Going forward, increasing product penetration and of course an expanding customer base is expected to drive growth in the industry.

8. Our Target Market

The demographic and psychographics composition of those who need the services of tax preparation service providers cuts across individuals and households, small businesses and large corporations.

Henry Murdock Tax Consulting, LLP will initially serve individuals and households, small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading tax preparation service firms in the United States.

As a standard and licensed tax preparation service firm, Henry Murdock Tax Consulting, LLP offers a wide range of tax preparation services cum financial consulting services hence we are well trained and equipped to services a wide range of clientele base.

Our target market cuts across businesses of different sizes and industries. We are coming into the industry with a business concept that will enable us work with the small businesses and bigger corporations in and around Saint Paul – Minnesota and other cities in the United States of America. Below is a list of the businesses and organizations that we have specifically design our products and services for;

Individuals (corporate executives and business people)
Mom and Pop Businesses
Corporate Organizations
Political Parties / Politicians
Hotels and Restaurants
Schools (High Schools, Colleges and Universities)
Sport Organizations
Entrepreneurs and Start – Ups

Our Competitive Advantage

The level of competitions in the tax preparation cum financial consulting services industry depends largely on the location of the business and of course the niche of your financial consulting services. If you can successfully create a unique brand identity for your tax preparation services firm or carve out a unique market, you are likely going to experience less competition.

For instance if you are one of the few tax preparation services firms in your locations that also offer bookkeeping and financial auditing services and also online tax preparation services, you are likely going to have a competitive advantage over your competitors.

Although the competition in the tax preparation services line of business is not just within same service providers but also other financial consulting related service providers in the tax preparation cum financial consulting services industry.

We are quite aware that to be highly competitive in the tax preparation services cum financial consulting services industry means that we should be able to deliver consistent quality service, our clients should be able to experience remarkable difference cum improvement and we should be able to meet the expectations of clients.

Henry Murdock Tax Consulting, LLP might be a new entrant into the tax preparation services cum financial consulting services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified tax consultants in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups tax preparation service providers) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Henry Murdock Tax Consulting, LLP is established with the aim of maximizing profits in the tax preparation services cum financial consulting services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients.

Henry Murdock Tax Consulting, LLP will generate income by offering the following tax preparation cum tax consulting services for individuals, households, start – ups, NGOs and for corporate organizations;

Provide income tax compilation services
Provide income tax return preparation services
Provide basic tax preparation services
Provide standard tax preparation services
Provide full-service tax preparation services
Provide tax-related financial products
Provide other tax return preparation services

10. Sales Forecast

One thing is certain, there would always be individuals, households, mom and pop shops, start – ups, NGOs and corporate organizations who would need the services of professional tax preparation services providers.

We are well positioned to take on the available market in Saint Paul – Minnesota and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Saint Paul to other cities in Minnesota and other states in the United States.

We have been able to critically examine the tax preparation services cum financial consulting market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Saint Paul – Minnesota.

Below is the sales projection for Henry Murdock Tax Consulting, LLP, it is based on the location of our business and the wide range of tax preparation services that we will be offering;

First Fiscal Year-: $150,000
Second Fiscal Year-: $350,000
Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competition amongst tax preparation service providers and other related financial consulting service providers in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent job delivery speaks for us in the market place; we want to build a standard tax preparation service business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our tax preparation services firm to become one of the top 20 tax preparation services firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Saint Paul – Minnesota but also in other cities in the United States of America.

Henry Murdock Tax Consulting, LLP is set to make use of the following marketing and sales strategies to attract clients;

Introduce our business by sending introductory letters alongside our brochure to corporate organizations, schools, households and key stake holders in Saint Paul and other cities in Minnesota.
Advertise our tax preparation services business in relevant financial and business related magazines, newspapers, TV stations, and radio station.
List our tax preparation services business on yellow pages ads (local directories)
Attend relevant international and local finance and business expos, seminars, and business fairs et al
Create different packages for different category of clients (start – ups and established corporate organizations) in order to work with their budgets and still deliver quality services to them
Leverage on the internet to promote our tax preparation services business
Engage direct marketing approach
Encourage word of mouth marketing from loyal and satisfied clients.

11. Publicity and Advertising Strategy

We are aware of the importance of adequately publicizing a start – up business like ours hence we have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the tax preparation services cum financial consulting services industry by storm which is why we have made provisions for effective publicity and advertisement of our travels and tours agencies. Below are the platforms we intend to leverage on to promote and advertise Henry Murdock Tax Consulting, LLP;

Place adverts on both print (community based newspapers and magazines) and electronic media platforms
Sponsor relevant community based events / programs
Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
Install our Bill Boards on strategic locations all around Saint Paul – Minnesota.
Engage in road show from time to time in target neighborhood in and around Saint Paul – Minnesota
Distribute our fliers and handbills in target areas in and around Saint Paul – Minnesota
Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Hourly billing for tax preparation services cum financial consulting services is a long – time tradition in the industry. However, for some types of tax preparation services cum financial consultancy services, flat fees make more sense because they allow clients to better predict consultancy costs.

As a result of this, Henry Murdock Tax Consulting, LLP will charge our clients a flat fee for many basic services such as tax preparation services and business advisory services and tax consulting et al.

At Henry Murdock Tax Consulting, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to individuals, households, start – ups, nonprofits, cooperatives, and small social enterprises.

We are aware that there are some clients that would need regular access to tax consultancy and advisory services and assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

Payment Options

At Henry Murdock Tax Consulting, LLP our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

Payment by via bank transfer
Payment via online bank transfer
Payment via check
Payment via bank draft
Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our service charge.

13. Startup Expenditure (Budget)

Starting a tax preparation services firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment.

Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount to purchase the required tax and accounting software applications, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.

This is the financial projection and costing for starting Henry Murdock Tax Consulting, LLP;

The Total Fee for incorporating the Business in the United States of America – $750.
The budget for basic insurance policy covers, permits and business license – $2,500
The total amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
The cost for purchase of the required software applications (CRM software, Tax, Accounting and Bookkeeping software and Payroll software et al) – $10,500
The Cost of Launching your official Website – $600
The budget for paying at least three employees for 3 months plus utility bills – $10,000
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Miscellaneous: $1,000

Going by the report from the market research and feasibility studies conducted, we will need over one hundred and fifty thousand ( 150,000 ) U.S. dollars to successfully set – up a medium scale but standard tax preparation services firm in the United States of America.

Generating Funding / Startup Capital for Henry Murdock Tax Consulting, LLP

Henry Murdock Tax Consulting, LLP is a business that will be owned and managed by Henry Murdock and his business partner for many years Lucy Kent. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

Generate part of the start – up capital from personal savings
Source for soft loans from family members and friends
Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Henry Murdock Tax Consulting, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our tax preparation services cum tax consulting services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Henry Murdock Tax Consulting, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

Business Name Availability Check : Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts various banks in the United States: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of All form of Insurance for the Business: Completed
Conducting Feasibility Studies: Completed
Securing a standard office facility (renovation inclusive): Completed
Generating part of the start – up capital from the founder: Completed
Applications for Loan from our Bankers: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Company’s Logo: Completed
Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In Progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with vendors and key players in the industry: In Progress

Sample Business Plans

Tax Preparation Business Plan

Tax preparation is a recession-proof business. No matter what happens to the economy, this business never goes off-trend. So starting a tax preparation business is an excellent choice.

Starting a business from scratch and standing up against big industry giants may feel overwhelming, but a detailed business plan can help you succeed.

Need help writing a business plan for your tax preparation business? You’re at the right place. Our tax preparation business plan template will help you get started.

Free Business Plan Template

Download our Free Tax Preparation Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

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How to Write a Tax Preparation Business Plan?

Writing a tax preparation business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business: Start your executive summary by briefly introducing your business to your readers.
This section may include the name of your tax preparation business, its location, when it was founded, the type of tax preparation business (E.g., franchise tax preparation services, enrolled agent firms, tax law firms.), etc.
Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
Tax preparation services: Highlight the tax preparation services you offer your clients. The USPs and differentiators you offer are always a plus.
For instance, your services may include tax preparation, accounting, tax resolution and representation, tax planning, and tax consulting.
Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description: Describe your business in this section by providing all the basic information:
Franchise tax preparation services
Independent tax preparation services
Online tax preparation services
Enrolled Agent (EA) firms
Tax law firms
Certified Public Accountant (CPA) firms
Describe the legal structure of your tax preparation company, whether it is a sole proprietorship, LLC, partnership, or others.
Explain where your business is located and why you selected the place.
Owners: List the founders or owners of your tax preparation business. Describe what shares they own and their responsibilities for efficiently managing the business.
Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
Business history: If you’re an established tax preparation service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
Additionally, If you have received any awards or recognition for excellent work, describe them.
Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
For example, if you are an independent tax preparation service provider, you might target busy individuals, self-employed professionals, retirees, new immigrants, and people with low and moderate incomes.
Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your tax preparation services from them. Point out how you have a competitive edge in the market.
Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
For instance, the COVID-19 pandemic has accelerated the trend toward remote and hybrid work in the tax preparation industry, so you may need to explain how you plan to handle your remote team.
Regulatory environment: List regulations and licensing requirements that may affect your tax preparation company, such as business registration, Preparer Tax Identification Number (PTIN), state-specific requirements, tax preparer bond, insurance requirements, etc.

Here are a few tips for writing the market analysis section of your tax consultant business plan:

Conduct market research, industry reports, and surveys to gather data.
Provide specific and detailed information whenever possible.
Illustrate your points with charts and graphs.
Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Preparation of federal, state, and local tax returns
Review of tax documents
Electronic filing
Tax planning
Audit assistance
Tax resolution services
Describe each service: Provide a detailed description of each service you provide, including the process involved, the time required, etc.
Tax resolution processes, for instance, include consultation, investigation, strategy development, negotiation, resolution, and ongoing compliance.
Quality measures: This section should explain how you maintain quality standards and consistently provide accurate, reliable, and timely services.
This may include,
Regular training and education for staff
Thorough review and quality control processes to ensure accuracy
Compliance with all relevant laws and regulations governing tax preparation services, etc.
Additional services: Mention if your tax preparation company offers any additional services. You may include services like IRS audit support, back taxes, delinquent filing assistance, and tax planning and consulting.

In short, this section of your tax preparation plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, your expertise in the market, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
For example, personal attention, year-round services, niche specialization, and commitment to excellence could be some of the great USPs for a professional tax preparation company.
Pricing strategy: Describe your pricing strategy—how you plan to price your tax preparation services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers to your tax preparation service.
Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, networking, Google ads, brochures, email marketing, content marketing, and print marketing.
Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with local notary businesses, offering referral discounts, etc.
Customer retention: Describe your customer retention strategies and how you plan to execute them. Your customer retention strategies may include introducing loyalty programs, proactive communication, personalized customer services, and offering referral discounts.

Overall, this section of your tax preparation business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your tax preparation business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training: Mention your business’s staffing requirements, including the number of bookkeepers, tax preparers, and other employees needed. Include their qualifications, the training required, and the duties they will perform. Operational process: Outline the processes and procedures you will use to run your tax preparation business. Your operational processes may include client communication, tax preparation, financial management, staff management, and regulatory compliance.
ESoftware & Technology: Include the list of software and technology required for tax preparation, such as tax preparation software, client management software, financial management software, document management software, and regulatory compliance software.
Explain how these software and technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your tax preparation business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO: Mention the founders and CEO of your tax preparation company, and describe their roles and responsibilities in successfully running the business.
Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
It should include key executives, senior management, and other department managers (e.g., Tax manager, Accounting manager.) involved in the business operations, including their education, professional background, and any relevant experience in the taxation industry.
Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your tax preparation services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
Balance sheet: Create a projected balance sheet documenting your tax preparation business’s assets, liabilities, and equity.
Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
This exercise will help you understand how much revenue you need to generate to sustain or be profitable. Financing needs: Calculate costs associated with starting a tax preparation business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

Add a table of contents for the appendix section to help readers easily find specific information or sections.
In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
Provide data derived from market research, including stats about the taxation industry, user demographics, and industry trends.
Include any legal documents such as permits, licenses, and contracts.
Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your tax preparation company business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample tax preparation business plan will provide an idea for writing a successful tax preparation plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our tax preparation business plan pdf .

How To Conduct Consumer Analysis

Writing a Business Plan Table of Contents

10 Components of Business Plan

How to do Competitive Analysis

Frequently Asked Questions

Why do you need a tax preparation business plan.

A business plan is an essential tool for anyone looking to start or run a successful tax preparation business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your tax preparation company.

How to get funding for your tax preparation business?

There are several ways to get funding for your tax preparation business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Bank loan – You may apply for a loan in government or private banks.
Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your tax preparation business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your tax preparation business plan and outline your vision as you have in your mind.

What is the easiest way to write your tax preparation business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any tax preparation business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Tax Business Plan Template: Everything You Need to Know

Its a strategy for all aspects of your business. It is a necessity for those looking to start a tax preparation or tax consulting business. 3 min read updated on September 19, 2022

A tax business plan template is a strategy for all aspects of your business. It is a necessity for those looking to start a tax preparation or tax consulting business. A tax preparation business assists individuals and small businesses to prepare and file their taxes correctly and accurately. There are several advantages to choosing a tax preparation business:

There is little initial investment compared to most other businesses. A tax preparation business can even be started with $500 or less.
Tax preparation is a flexible business that can be done on a part-time basis and allows for the flexibility to work around family and other obligations. This is a great business venture for stay-at-home parents.
Tax preparation and consultation services are in demand by small businesses that don't have a full-time accountant. These businesses are able to pay for your expertise only when they need it the most.
As a tax consultant, earnings can be $100-$200 per month, depending on your expertise.

The first step in determining if a tax business is the right choice for you is to complete research to determine the feasibility. Research is a way to learn important things about the business that will be helpful in your success. This will help you determine if this is the right business for you, and what type of business you should create.

This information gathering will assist you in preparing a tax business plan template. A tax preparation business service plan can include several different parts consisting of a business overview, strategy, marketing, accounting, services, and all aspects of the business. Before you start your business, make sure you consider how to form a solid business plan.

Sample Tax Preparation Service Business Plan

Business overview/products and services/mission statement.

The company is a financial consulting firm specializing in tax preparation of all types- income tax compilation and returns, tax preparation, financial services, and standard, basic and full-service income tax preparation.
The employees will be professionals in the financial consulting services industry whose ethics and values align with those of the company.
The company and employees will be held accountable to meet their clients' needs and will create a working environment focused on sustainable living and community involvement.
The brand goal is to become the top tax preparation service in the city and among the top tax preparation businesses in the United States within 20 years.
The tax consulting firm will offer many services within the scope of tax preparation services, tax consulting, and tax-related financial products. The primary clients will be individuals, start of corporations, and established corporations looking to outsource tax preparation.

SWOT Analysis/ Market Analysis/Accounting Plan

Strength- Our strength lies in our employees who are professional, well-trained, and do what it takes to ensure that our clients get a great value.
Weakness- As a new company, it will take time to gain respect and acceptance in the community. We also do not yet have the cash flow for expensive marketing efforts.
Opportunities- There are many opportunities for a tax preparation services company in the community. Individuals and companies both large and small need to use tax preparation services to ensure they are reporting accurately and to save them money.
Threats- Other similar financial services firms in the area will cause a threat, as well as the existence of certain government policies regarding taxes. Neither of these threats can be reduced or eliminated.
Financial services and tax preparation is a large industry with the potential to serve many individuals and businesses in need of these services.
Many small businesses and mom and pop shops don't have the financial capacity to hire a full-time accountant but find it cost effective and less stressful to use tax preparation services and financial consulting services to ensure that everything is handled correctly.
The target market is anyone who needs tax preparation services and is not restricted to any particular demographic groups. This also includes businesses of any size.
Competitive advantage- the competitive advantage depends on the location of the business and if it is possible to create a unique angle in which to market your business in that locale, such as offering related services

It is possible to start a successful tax preparation business in just a few days with appropriate research and resources. Training is important, and a degree in an accounting or financial field will put you at an advantage. Make sure to complete state requirements, such as registering your new business.

For more information on tax business plan templates or legal requirements, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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