Approximately 95% of your existing customer-base already purchases these services.

By Steve Minish, National Accounts Manager, eTax Partners

In today's increasingly competitive marketplace many Rent to Own companies are prospering by offering Tax Preparation services to their customers.

With the right partner, tax preparation can be a perfect addition to the Rent to Own for several reasons.

First, it is important to understand that approximately 95% of your existing customer-base already purchases these services. Customer utilization is generally very high, as the offering matches their existing buying patterns.

Second, not only is there a significant profit opportunity presented by offering tax preparation, there are additional cross selling opportunities as well. Many Rent to Own companies opt to cash the refund check for their customers. Others choose to apply the tax refund amount to the customer's pre-paid debit card account. There is also an opportunity to support automatic bill pay services at the time the refund is delivered.

Here is an overview of what to look for when choosing a tax preparation service provider:

• Choose a company that takes on the responsibility of acting as the "paid preparer" with the IRS. This provides the location with a "Tax Firewall" to reduce errors and liability. This also shows the companies' long term commitment to the tax business and an interest in making sure that the returns are prepared, transmitted, batched correctly. Equally important, having your provider act as the paid preparer significantly reduces your workload thereby keeping you focused on your core business.

• Utilize a service provider that offers a web based platform. This feature gives all of your locations the ability to access the system with a basic internet connection. With a web based system there is no software to download or purchase. Avoid the common "software reseller" as the majority of these products were designed to be sold to accountants and tend to be very user unfriendly.

• Customer support is critical. Look for a company that offers access to instant live support 7 days a week from the open to close of your business during tax season. Ask the provider if the customer support staff are their employees. Avoid "outsourced" customer service representatives or representatives that work for the software companies. At some point during the process your people will have questions. Make sure there is a resource that allows them to get the answer quickly and get back to their other responsibilities.

• Pick a provider with a fast/user friendly system. In today's marketplace, the tax payer interview should not take more than 5‐10 minutes. The customer's refund amount should be calculated and made available instantly upon completion of the return. You should have the ability to print refund checks on site the moment the return is accepted.

• Avoid any service provider that charges a fee for software, training, marketing materials, and account set up. A service provider that wants your business will be willing to invest in your company up front.

There are many different tax preparation service providers. Most of them offer pieces of puzzle, take the time to find the one that offers all of the above mentioned features. Finally, tax season comes at a traditionally slow time of the year for Rent to Own companies. You should expect to earn on average of upwards of $100.00 per tax return, with the funds dropping to your bottom line in January and February. Many Rent to Own companies earn upwards of $10,000.00 per location per year. Some earn more.

Finally, if done properly, offering tax preparation services to your customers will increase their value perception of your business as a their "place" for all of their financial service needs. They will be more inclined to utilize your other service offerings as well.

Since 1988, eTax Partners has been providing complete tax preparation services to the Rent to Own, consumer finance and Payday industry. Steve Minish is the National Accounts Manager for eTax Partners www.etaxpartners.com. For more information contact Steve at sminish@cg1etax.com or 800-899-ETAX.