What is a Service Bureau ?
A Service Bureau is a company that provides software, technical support, and backend infrastructure to tax preparers and EROs so they can file tax returns electronically through the IRSâs e-file system. Think of it as the engine behind the scenes that makes tax filing seamless for professionals who may not have their own direct relationship with IRS e-file providers.
How Do Service Bureaus Generate Revenue?
The Most Profitable Business Model in the Tax Industry
Operating as a Service Bureau is one of the most profitable business models in the tax industry, offering multiple income streams and opportunities to earn even during the off-season. Here are the most common ways Service Bureaus generate revenue:
The main source of revenue for your Service Bureau comes from Bank Products processed through your platform. Each time a Bank Product is funded via your software, you earn a Service Bureau Fee, which is paid by the customer and deposited directly to you in real time. You also have full control over setting this fee, up to the maximum limit of $99.
Service Bureau Fees:
Up Front Revenue:
This is revenue youâll earn upfront by selling your Service Bureau Packages. This can range from selling a single software license to another tax professional to offering a Tax Academy, where enrollees gain access to your software. We provide extensive training and resources on the most effective strategies to generate immediate revenue as a Service Bureau.
In addition to Service Bureau Fees, you may also leverage other fees that are paid by the customer, such as Technology & Transmission Fees, Service Bank Fees, Audit Protection Fees, and Addon-Fees. We provide in depth training on how to best add these fees to your Service Bureau, and they are paid out to you generally the first week of July.
Additional Fees:
