Tax Preparation Business Plan Template [Updated 2024]

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I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name], located in [insert location here], is a new tax preparation firm that serves individuals throughout the area. The Company will focus on offering affordable full-service tax preparation with a guarantee of accuracy.

Products Served

[Company Name] will offer the following services:

  • Basic tax preparation services
  • Standard tax preparation services
  • Full-service tax preparation services
  • Tax-related financial products

Customer Focus

[Company Name] will primarily serve individuals, as well as businesses and nonprofits. These clients are segmented by adjusted gross income, or tax bracket:

  • Individuals with income between $30,000 and $75,000
  • Individuals with income of $75,000 and up
  • Businesses
  • Nonprofit organizations, government agencies, and other

The following numbers of these customer types live/operate within 25 miles of our headquarters:

  • 125,000 individuals
  • 8,000 businesses
  • 1,000 nonprofits

Management Team

[Company Name] is led by [Founder’s name], who has been in the tax preparation industry for [x] years. [Founder’s name] graduated from the University of ABC, where he majored in accounting. His first job out of college was with the IRS, where he acquired in-depth knowledge of the agency, and learned which filing mistakes cause red flags, and how to navigate tricky tax situations. From there, he worked in progressively responsible roles at a national tax prep franchise, learning how to manage and run a tax preparation business before starting [Company name].

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

  • There is a need for knowledgeable and affordable tax preparation services within the community. Currently, the area is served exclusively by national tax prep franchises, which cannot always accommodate those with more complex needs.
  • We are centrally located in a high-traffic commercial area, with easy access from multiple thoroughfares.
  • The owner has inside knowledge of the IRS, and has many years’ experience with tax preparation.
  • Market trends such as changes to the tax code and filing process changes have spurred demand for tax preparation services.

Financial Highlights

[Company Name] is currently seeking $150,000 to start the tax preparation company. Specifically, these funds will be used as follows:

  • Office design/build: $40,000
  • Working capital: $110,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

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