The tax off season can be a challenge for some tax preparers trying to maintain a stable income. Like many of your personal finance and small business clients, you’re trying to achieve financial stability and comfortably pay for your mortgage, your kids’ braces, and hopefully a vacation or two a year that doesn’t matter. don’t involve visiting family on the opposite coast.
Some tax preparers even take on other jobs in the financial sector to supplement their income from May to December. These opportunities can be quite stable. The most common ways tax preparers use to increase their off-season income are:
- Tax representation for clients as an IRS Enrolled Agent (EA)
- Payroll management for small and medium businesses
- Independent accounting for other companies
Others invest their time in selling securities with their Series 6, Series 7, and Series 63 licenses, selling other financial products, or keeping another job through the downturn months.
All these secondary incomes have common points: they require investing a lot of time (and money) to train and obtain a license in another area of financial services, fulfill continuing education requirements, and provide very little control over the products or services you provide to customers.
Some tax preparers have chosen a different off-season route that they find profitable year-round: credit repair services.
As a credit repair consultant, you can work when, where, and how best fits your lifestyle and financial goals. You will keep your tax preparation business income and do credit repair services for existing customers.
Here are three reasons why professionals supplement their tax preparation income with credit repair services:
1. Everyone needs credit repair
Similar to the fact that everyone has to file their taxes, you’d be hard pressed to find a friend, family member, or neighbor who wouldn’t want their credit score higher than it is. The main difference between tax preparation and credit repair is that the former is an annual source of income for you where the latter is ongoing and there is an ongoing need.
Most people in the United States can benefit from a better credit score. Whether they’re in debt, need a new car, or trying to pay less over the life of their mortgage, members of your community deserve to understand how credit works and get the help they need. Read this article on 15 Reasons Consumers Are Fixing Their Credit from personal finance expert The Balance.
● 79% of credit reports contain errors – in fact, the Brookings Institute recently unveiled that this significant flaw in our credit system is making many consumers seem riskier than they are
● The National Consumer Law Center has found that “credit bureaus have little economic incentive to conduct proper litigation or improve their investigations”, meaning the consumer may give up after an unsuccessful attempt to remove defective items
● Credit repair takes about 6-8 hours to learn and five minutes per month per customer after the initial credit audit
2. Leverage your existing business
Many credit repair business owners are surprised at the number of customers that flood in once they open the floodgates of offering credit repair services. In fact, almost any of your existing tax preparation clients can improve their financial situation with credit repair services.
When your tax preparation business slows during the off season, you can grow your credit repair business without having to search for new clients, as your current client list is likely full of people who could benefit from credit repair services. and they already trust you with their financial information.
Charge customers an affordable monthly fee and work hard to remove items, following a proven system backed by reliable business software. This scalable business model gives consumers the credit score they’ve earned and earns you stable off-season income.
Satisfied clients are already referring clients to you for tax preparation. Imagine if you could help these people and their referral network better position themselves financially through holistic financial services. Add credit repair services to your tax preparation business and you can help your clients better position themselves financially throughout the year. You become more valuable to customers while increasing the lifetime value of your customers for your business.
3. Add a skill to your financial repertoire
Your financial experience and credibility in the community as a financial advisor gives you an incredible advantage if you offer credit repair services. Most credit repair business owners spend the first few months developing skills and finding credit repair clients. When you do credit repair for existing clients, you’re also building your tax preparation business by making yourself indispensable to clients. And, as you recruit new credit repair clients during the off-season, you’ll be their natural choice for a tax preparer in the new year!
Credit repair experts teach people better financial habits so they can improve their credit scores and maintain their excellent credit. If you can help people be financially savvy with their taxes and create lasting financial habits that will help them throughout the year, you’ll have a steady stream of referrals from satisfied clients.
Teach your customers simple habits such as:
- Pay off existing debt below 30% of the credit limit
- Do not open new lines of credit during the credit repair process
- Set a budget (and stick to it)
The more services you provide to your tax-preparing clients, the more they will see you as their trusted financial person.
4. Earn money while you sleep
Unlike a tax preparation business, your credit repair business will earn you money while you’re on vacation, as long as you do the up-front work. When you start a credit repair business, you need to invest time and mental energy to learn industry best practices, research your target market, and build a reputation for yourself by dedicating hours to credit repair clients. .
Here’s how credit repair services give you passive income:
1) Carry out a credit audit for your customer (this can be automated in seconds by your business software)
2) Create a plan to remove defective items and send dispute letters to credit bureaus (TransUnion, Experian, and Equifax)
3) Check progress after 30 dayskeep abreast of all office and creditor communications with your client and make sure things are taken care of
This step takes about five minutes per customer per month, typically improves customer credit scores within months, and creates a scalable business model.
Credit repair services create passive income through the affordable monthly fees your customers pay. You can help hundreds of clients per month and earn a six-figure salary with minimal time investment and a short learning curve. (You can calculate your potential income from credit repair services with this projected income calculator.)
Learning a new industry like securities or another financial product can take months or even a year to master (think of all the training time, passing and re-taking tests, continuing education costs).
Invest six to eight hours in credit repair training and make significant income in a business that is adjacent to your community’s current reputation: helping people keep more of their hard-earned money.
To begin offering credit repair services after this tax period, you can:
1) Learn more about credit repair by visiting creditrepaircloud.com/blog
2) Get training from experts in the field at American Credit Repair Academy
3) Join a community of experts, run your business with trusted software, and start building a profitable credit repair business that gives you a financial cushion during the off-season
Give your tax preparer income a boost this year by offering your clients credit repair services!
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Daniel Rosen is the founder of Credit Repair Cloud and an expert in running a credit repair business. He is a mentor and thought leader for thousands of credit repair companies across the United States. Daniel is the author of The Ultimate Guide to Start a Credit Repair Business, creator of the Credit Repair Business Essentials online training course, and valuable articles such as Everything You Need to Become a Credit Repair Specialist and 10 expert credit repair tips.
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