Starting a tax business takes more than purchasing software.

Before serving your first paying client, you need the right credentials, tax knowledge, tools, and basic business systems in place.

Here are the major areas to focus on.

Get Your PTIN

A PTIN identifies you as a paid tax return preparer.

For most people entering the tax preparation industry, this is one of the first steps toward preparing federal returns professionally.

Understand Your EFIN Options

If you eventually plan to electronically file returns through your own tax business, you will need to understand the EFIN process.

Some new preparers begin by working through an existing approved provider while they gain experience and build their business.

The important thing is understanding how your returns will be electronically filed before you begin serving clients.

Learn How to Prepare Returns

Tax software does not replace tax knowledge.

Before working with paying clients, you should understand the fundamentals behind the returns you are preparing.

Practice returns can help you learn how different forms, income sources, deductions, and credits work together.

Choose Professional Tax Software

Your software will be one of the main tools behind your business.Consider more than price.

Look at areas such as:

• ease of use

• tax forms supported

• electronic filing

• diagnostics

• customer support

• training

• bank product options

Choose software that fits the kind of tax business you want to build.

Create a Professional Client Process

Decide what should happen when someone becomes a client.

A basic process may include:

• client intake

• document collection

• tax interview

• return preparation

• review

• signatures

• payment

• electronic filing

• final document delivery

A simple process makes your business easier to operate and creates a better client experience.

Know How You Will Find Clients

Do not wait until tax season begins to start telling people what you do.

Your first clients may come from:

• friends and family

• referrals

• social media

• local networking

• business owners

• real estate professionals

• community relationships

Start building trust and visibility before you need the business.

Treat It Like a Business

Preparing returns is only part of operating a tax business.

You should also think about:

• pricing

• bookkeeping

• client communication

• secure technology

• marketing

• continuing education

• quality control

The goal is not simply to complete one tax season.

The goal is to build something you can improve every year.