What Your First Year as a Tax Preparer Actually Looks Like

Thinking about starting a tax prep business but unsure what the first year actually looks like?

In this episode of The MuseSpring Minute, Jason Carr gives a month-by-month roadmap for launching a tax preparation business. Instead of treating tax season as something that starts in January, Jason explains how the work begins months earlier with training, setup, software, business formation, insurance, online presence, and client outreach.

The episode walks through:

August through October: setup, training, software, PTIN, EFIN, insurance, and online presence

November through December: marketing, networking, pre-season outreach, and client intake systems

January through April 15: tax season workflow, first-year client goals, and return preparation rhythm

April 16 through July: post-season review, referrals, and year-round service opportunities

Jason also explains why a realistic first-year goal may be 20 to 50 clients, how new preparers gain confidence through repetition, and why knowing when to refer complex matters to a tax attorney or CPA is part of operating professionally.

If you are considering tax preparation as a side business, career change, or long-term practice, this episode gives you a practical first-year roadmap.

Key Takeaways

• Uncertainty stops many people from starting: A lot of aspiring tax preparers hesitate because they cannot picture the day-to-day work or the first-year timeline.
• The first year has a clear structure: The launch process can be broken into four phases: setup and training, marketing and pre-season preparation, tax season, and post-season growth.
• August through October is the preparation window: This is when new preparers should focus on training, tax software, LLC formation, PTIN and EFIN applications, E&O insurance, and basic online presence.
• Training should happen before tax season: New preparers need time to learn the fundamentals, including W-2 income, filing statuses, deductions, credits, and common individual tax forms.
• Tax season starts before January: November and December are the right time to tell your network, post on social media, join local groups, and let people know you are accepting clients.
• Client intake should be built before the rush: Scheduling, document collection, workflow, client communication, review, signature, and e-filing processes should be planned before tax season begins.
• A realistic first-year goal is 20 to 50 clients: That range is manageable for many new preparers, whether they are working part-time alongside a job or building a first full-time season.
• Confidence comes through repetition: The first few returns may feel intimidating. By return number 10, most preparers start finding a rhythm. By return number 30, the process feels much more natural.
• Scope control protects the preparer and the client: New preparers will encounter situations involving unfiled returns, IRS notices, audits, or complicated business structures. Knowing when to refer those matters is part of building a professional practice.
• The work does not end on April 15: The months after tax season are the time to review what worked, ask for referrals, improve systems, and consider year-round services.
• Referrals drive year-two growth: A simple post-season referral request can help a first-year client base grow into a stronger second-year book of business.
• Year-round services create a real practice: Bookkeeping, payroll support, quarterly estimated tax reminders, and entity formation referrals can help preparers stay visible and valuable beyond filing season.

Suggested Episode Timestamps

00:00: Why uncertainty keeps people from starting a tax prep business

00:30: What the first year looks like month by month

00:55: August through October: setup and training

01:25: Choosing software, forming an LLC, applying for PTIN and EFIN

02:00: Building a basic online presence

02:25: Learning the fundamentals of individual tax preparation

03:00: November through December: marketing and pre-season prep

03:35: Reaching out to your personal and local network

04:05: Setting up client intake before January

04:45: January through April 15: tax season execution

05:15: Realistic first-year client goals

05:50: What the return preparation workflow looks like

06:35: How confidence builds with each return

07:05: Knowing when to refer complex tax matters

07:50: April 16 through July: debrief and build

08:20: Reviewing the season and identifying training needs

08:50: Asking clients for referrals

09:20: Adding year-round services after tax season

09:55: How the Tax Business Blueprint Program helps compress the launch timeline

10:30: Closing

Resources Mentioned

• MuseSpring: https://musespring.com
• Tax Business Blueprint Program: https://musespring.com
• The Law Office of Jason Carr, PLLC: https://carrtaxlaw.com 

Transcript

0:02

You trained for the career. Now build the business. This is the New Spring Minute, where aspiring tax professionals learn to launch and scale their own practice. Here's your host, Jason Carr. One of the biggest reasons people hesitate to start a tax prep business is uncertainty. They don't know what the day-to-day looks like. They can't picture the timeline. So let me paint the picture for you month by month for your first year. In August through September, you're completing your business setup and training if you haven't already done so. This is basically your preparation window. You're completing your training, selecting your software, forming your LLC, applying for your P10 and EFIN, getting your EO insurance, and building your basic online presence, including a simple website, a Google Business Profile, and a Facebook page. You're also telling your network that you're becoming a tax preparer. That announcement alone should generate your first few clients. If you're working through the Tax Business Blueprint program, this is when you're completing the core curriculum. You're learning the fundamentals of individual tax preparation, including W-2 income, itemized deductions, standard deductions, filing statuses, credits, and the common forms you'll encounter. In November through December, you're marketing and doing your preseason prep. Tax season doesn't start in January. It starts now. You're reaching out to friends, family, neighbors, and community contacts. You're posting on social media. You're joining local business groups. You're letting everyone know that you're accepting clients for the upcoming tax season and that you're offering a new client rate to build your book of business. You're also setting up your client intake process. How will clients schedule an appointment? How will they send you their documents? What does your workflow look like from a new client inquiry to return filed standpoint? Get this figured out before January, because once tax season starts, you won't have time to build systems on the fly. In January through April 15th, that's your tax season. This is the main event. In your first year, a realistic goal is 20 to 50 clients. That's manageable alongside a day job if you're doing this part-time, or a solid first season even if you're doing it full-time. Your days will look something like this. You receive documents from clients, review them for completeness, enter the data into your software, review the return for accuracy, present the return to the client for review and signature, and e-file. Each return takes one to three hours depending on complexity. The first few returns will be nerve-wracking. That's normal. By return number 10, you'll have a rhythm down. By return number 30, you'll wonder why you didn't start sooner. You'll also encounter situations that are beyond your scope. A client with unfiled returns from five years ago. Someone who received an IRS notice. A business owner with a complicated partnership structure. Knowing when to refer these situations to a licensed tax attorney or CPA is one of the most valuable skills you can develop in this first year. It protects your client and it protects you. April 16th through July is your debrief and build period. Tax season is over. Take a breath. Then do three things. First, review your season. What went well? What was harder than expected? Which types of returns were you most comfortable with? Which ones need more training? Second, reach out to every client and ask for a referral. A simple email reading, if you know anyone who needs a tax preparer they can trust, I'd appreciate the introduction. This is how your client base doubles from year one to year two. Third, start thinking about year-round services, things like bookkeeping, payroll support, quarterly estimated tax reminders, entity formation referrals, tax planning. The preparers who build real practices don't disappear after April 15th. They stay visible and stay valuable to their clients all year. That's year one. It's work, hard work, but it's structured work with a clear path. And every year after this one gets easier because your clients come back, they bring referrals, and your skills compound. One thing I'll mention, the timeline I just described assumes you're doing everything on your own. Finding training, figuring out the setup, learning through trial and error. The Tax Business Blueprint program at Muspring compresses that timeline because we've already built the curriculum, the templates, and the support structure. You learn, you launch, you scale. That's the model. Check out MuSpring.com if you want to see the full roadmap. I'm Jason Carr. Thanks for listening to the Mew Spring Minute. Thanks for listening to the Mew Spring Minute. Subscribe and leave a review so other future tax pros can find the show. The Mew Spring Minute is produced by Mew Spring LLC for educational and informational purposes only and does not constitute legal or tax advice. For guidance specific to your situation, consult a qualified professional. Mew Spring LLC is number one for you.