The Tax Service Bureau business model is ideal for anyone with experience in the field of tax preparation. When you transform your business into a Tax Service Bureau your experience and connections you have made become services you can offer and potential clients for your business. Furthermore, a Service Bureau business model provides you with year round income instead of the seasonal revenue generated from a standard tax prep business. However you may still be wondering, “how does a Service Bureau generate revenue?” In this article we will explain how a Tax Service Bureau generates revenue and why partnering with SwiftFP to become a Service Bureau is a wise investment for your and your business.
If you are new to this and are not sure what a Tax Service Bureau is and how it can benefit you then click here.
How Does a Tax Service Bureau Generate Revenue?
Tax Software Sales:
One of the main ways a Service Bureau generates revenue is through the sale of professional tax software. Most, if not all, tax preparation businesses use some form of tax software in order to expedite the tax filing process. As a Service Bureau, you provide the license for this software, customized with your branding material, for a yearly fee. Your Service Bureau will receive 100% of the profits from this sale as revenue.
Service Bureau Fees:
Charging a Service Bureau fee will allow you to make money off of every tax return that is prepared by one of your affiliated tax preparation offices. The direct affiliate model goes further than just selling software to a tax preparation business. In this model your Service Bureau will provide services such as software training, marketing solutions, tax education and more in exchange for a fee on every tax return filed by the tax preparation business partnered with you. The fee amount is determined by what you and the partnering tax prep business agree upon.
Revenue Share:
The revenue share model of generating revenue is similar to a Service Bureau fee however, the revenue share is a percent of the tax return you and the partnering tax preparer agree on in exchange for the services rendered by you, the Service Bureau. The Revenue share is also different from the Service Bureau fee in terms of who is paying your Service Bureau. Service Bureau fees are paid to you by the client while revenue share is a percent of the revenue generated by the tax preparer on each tax return. The top revenue shares we recommend are 70/30, 80/20, 90/10 depending on what you and the tax office agree upon.
Outcome:
When you transition your tax office into a Tax Service Bureau you turn your experience and network into profitable services you can offer other tax preparers. This business model means you can generate six figure revenue in as little as three months! So don’t wait, become a Service Bureau and expand your earning potential today.
