How to Grow a Tax Preparation Business:  Kim Erick’s Update

Kim Erick spent 16 years in the same industry, working long hours day after day and living paycheck to paycheck. In fact, she and her husband (who also worked long hours) were always one emergency away from financial distress. They were never really able to save money. That is, until Kim took the chance to start her own bookkeeping business – and then learned how to grow a tax preparation business alongside it. Her income soon exceeded what she made working full-time. Better yet, she was at home, and only working part-time, which gave her much more freedom for the rest of her life.

Kim started Home Time Business Services in 2017 while still working her way through the courses that would become Bookkeeper Launch and TaxBiz. 

I  first interviewed Kim in 2019. At that time, she was learning how to grow a tax preparation business with two tax seasons under her belt. I wanted to know what taxpayers do and if tax preparers can really work from home. I also knew my readers wanted to know things like, “When do tax preparers work, and can I fit that around my family life?”

Reconnecting with Kim Erick

So I thought it would be a good idea to check in with Kim in 2021 to see if TaxBiz had helped her learn how to grow her tax preparation business to the next level.

While I was preparing to update this interview post, I looked into tax prep businesses. I discovered that the average annual salary is around $50,000. So, learning how to grow a tax business really can mean you earn enough to replace a full-time income, like Kim did.

But are tax preparers really in demand? I wanted to know that, too. So I looked into whether tax preparers will become obsolete, and what the tax preparer career outlook is. And I learned that tax prep is a growth industry, with more people leaving than joining the tax preparation field. This means that if you decide to follow Kim’s lead and learn how to grow a tax preparation business, there will be enough work for you, too. In fact, if you want to, you can even do tax work year-round.

Why Become A Tax Preparer?

Does Kim’s story before she learned how to grow a tax preparation business sound like it could be yours, too? Are you working long hours? Or are you at home with your family, wanting to improve your finances without disrupting family routines?  Do you want to change your life the way Kim has? Are you good with numbers? 

But Is Being a Tax Preparer a Good Job?

If you replied “yes” to even some of these, please read on. You’ll get answers  to common tax preparer questions, like “Is becoming a tax preparer hard?” Plus. Kim shares her first-hand knowledge of how to become a tax preparer and what it’s really like to grow a tax preparation business from the ground up.

And if being a tax preparer doesn’t seem like a good job for you, check out our other work-from-home career options!

And now, I’m going to turn this over to Kim, so she can share her insights on how to grow a tax preparation business – and change your life in the process!

Welcome back, Kim!

It’s been nearly two years since we last spoke.  Are you still growing your tax preparation business?   

Hi Robin,  Things are going incredibly well!  This past year was my 3rd tax season and I doubled, again.  I am bringing on help for this upcoming tax season. 

Has TaxBiz helped you learn how to grow your tax reparation business since we last spoke?  

While it started with a bookkeeping focus, I have shifted with a name change and rebranding to business services to more fully encompass the tax side of the business.  My confidence grows each season with learning more about the tax code through continuing education, reading what others have encountered and researching to find answers, and simply desiring to learn more to help others.  

Is your career as a bookkeeper and tax professional what you expected? 

It’s so much better than what I expected.  Actually, when I was talking to my husband about my “little business” he realized I’ve surpassed what I was making as an employee previously.  He’s considering coming to do what I do!  

How do you manage the bookkeeping side of your business during tax time?  

Since we last talked, I am now serving 30 recurring clients.  I’ve brought on several bookkeeping contractors to help with the bookkeeping side of the business.  Now, I provide guidance and quality control over their bookkeeping work, but that takes much less time than fully doing the bookkeeping myself.  

How do you stay up to date with the ever-changing tax regulations while growing your business?  

Tax Biz* is now a provider of CE (continuing education) and so we are able to take the IRS Annual Refresher course at no additional cost and meet all the requirements for the Annual Filing Season Program with the IRS.  This is the first step to providing a professional designation.  The next would be obtaining an Enrolled Agent (EA) designation which is a three- test series.  *TaxBiz is no longer open for enrollment.

Do you do tax work throughout the year or only during tax season? 

Some clients aren’t ready “during the tax season” so extensions can be filed.  Additionally, I have worked with several clients who simply hadn’t filed for several years.  This keeps me doing something tax year-round.  The goal is to get the majority of the work done in the traditional tax season.  2020 was a challenging year with the IRS shutting down and extending due dates.  This made everyone procrastinate!  

What are your current goals? How do you plan to grow your tax preparation business in the years ahead?

Great question!  My next goal is to have my bookkeepers do all the bookkeeping and bring on a quality control person.  

With the tax business, the next goal is to double again and then work on becoming more efficient with that group to have all returns completed within tax season!  It’s a lofty goal, but we always need to strive for something.  

What’s your best advice for finding clients and growing a tax preparation business?

I have a few sources of finding clients, my most used is referral sources.  I have joined a BNI Chapter (Business Networking International) locally, and while we moved to Zoom this year, it really has helped me to grow my tax client base.  

Additionally, I am working with a few bookkeepers who don’t want to do taxes and they refer their clients to me.  It’s truly a win-win on that front, the client’s books are well kept because they went through the same bookkeeping program (Bookkeeper Launch).  

Can someone with no experience really learn how to grow a tax preparation business? 

Yes, I’m living proof of that.  My experience was self-preparation of my own simple W2 only returns.  The key is great research skills and learning how to say “That’s a great question, let me make sure I’m giving you the right information for tax year 20XX as it has changed so much over the past few years. I want to give you the right information.” Clients really respect that you’ll take the time to make sure it’s right.   

Thank you, Kim!

Conclusion: How to Grow a Tax Preparation Business

As you can see from this 2021 interview, Kim was still benefiting from ongoing training four years after she began learning. And she kept on growing, as you can see in my 2023 interview with Kim.

So, would you like to change your life and become a tax professional, too? Are you looking for a career that offers full-time income for part-time work? How would that impact your personal and family realities?

As I shared above, there’s plenty of room in this growth industry! Plus, you can work right from home, or anywhere else you have a secure internet connection. As long as you get your clients’ tax work done by the deadlines, you can work anytime that makes sense for you.

Is Tax Preparation for You?

Do you want to learn how to grow a tax preparation business the way Kim Erick has?

The TaxBiz team recommends SmartWiz Academy. will have you covered with everything you need to know to get started.

Do you still have questions about how to grow a tax preparation business? Hit me up here and my team and I will do our best to get you answers. It’s our pleasure to help you find the right anywhere and anytime career for you.