The recent proclamation by President Trump to simplify the tax code and put as many as 80,000 tax preparers out of business may have temporarily taken a back seat to the raging debate on the future of healthcare and the ongoing Congressional investigations. However the question remains; is the tax preparation industry safe from drastic new changes promised by the President which could include implementing some elements of a flat tax?
A “flat tax” is an income tax system under which all tax payers pay the same tax rate regardless to their income. A flat tax simplifies the tax code by eliminating deductions, tax credits and most exemptions. It also eliminates the need for complex tax avoidance strategies offered by CPAs and other tax professionals. Some observers say it would be the first step in the elimination of the Federal Form 1040 altogether while others suggest your tax return could take the form of a simple post card on which you would write your wages and multiply it by one tax rate. Regardless to where you may stand on the subject of a “flat tax” or “tax simplification” the only certainty one should expect around this issue is more uncertainty.
A recent article written by Mark Cussen, CFP, CMFC, AFC entitled the “The Gloomy Future Of The Tax Preparation Industry” makes a compelling case for why those in the tax preparation business should look to diversify their client base to include small businesses which rely on year-round services such as bookkeeping, audits and financial statements.
One company which offers a unique lead generation system to accountants looking for small business clients is GoodAccountants.com. For the past fifteen years, GoodAccountants.com has provided accounting professionals a highly profitable and affordable way to expand their client base to include small business clients which require ongoing, year-round, services that can provide accountants a more consistent, yearly cash flow.
GoodAccountants.com is an online accounting marketplace which matches business owners with local accountants. In its fifteenth year of operation the company has become the U.S. Accounting industry’s largest advertising aggregator.
For more information on how to expand your accounting practice to include small business clients click here.