So You Want to Become a Service Bureau or Tax Prep Software Reseller?
- Profit Edge Team
- Oct 8
- 3 min read
If you’re in the tax preparation industry, you’ve probably come across the terms reseller and service bureau. But what exactly do they mean, and how do you become one?
Becoming a tax prep software service bureau or reseller is one of the smartest ways to grow recurring revenue while helping other tax preparers succeed.
What Is a Tax Software Service Bureau?
A service bureau is a business that partners with tax software providers to resell and manage that software for other tax offices. Unlike a simple reseller, a service bureau provides training, onboarding, and ongoing support, while earning a revenue on returns filed through its network.
Service Bureau vs. Reseller: What’s the Difference?
Understanding this distinction is critical:
A reseller sells software at a markup and works with other companies to support the customer after the sale.
A service bureau gains administrative control, manages sub-offices, provides tax season support to tax offices as well as other adjacent services (CRM, marketing, etc.)
Think of it this way: resellers sell software, while service bureaus also build support businesses around that software.
How to Become a Tax Software Service Bureau or Reseller
Here are the steps to get started:
Start as a Reseller. This is, by far, the fastest route to immediate growth. As a reseller you can focus on getting new customers and learn the ropes of servicing those customers while you build out your business.
Join a Buying Group. Starting out alone can be tough. By partnering with an existing group you will get a reliable infrastructure, mentoring, and support to make you successful. Your partner should offer strong customer service, flexible pricing, and proven performance.
Develop your service model. If you want to become a Service Bureau, you will need to focus on training, onboarding, and building long-term relationships in the industry. You will need contacts at the software companies, banks, CRM providers, etc. Your network’s success directly impacts your revenue.
Create your brand. Professional branding builds trust. Customize your portal, website, and materials so clients see your bureau as a trusted partner, not just a software provider.
Define success and plan for growth. Start small, refine your processes, and expand strategically. Both Reseller and Service bureau models are scalable, but you need to decide what success looks like for your today - and what your long-term vision is for your company.
Frequently Asked Questions
Q: What is a tax software service bureau? A tax software service bureau partners with software providers to resell and manage software for other tax offices. Unlike resellers, service bureaus provide training, support, and administrative control, generating recurring revenue from every return filed.
Q: How is a service bureau different from a reseller? Resellers sell software at a markup with minimal direct involvement in servicing their customers. Service bureaus, however, build a business around the software, manage sub-offices, customize pricing, and sometimes white-label the platform. They provide ongoing support and training to help clients succeed.
Q: How do I know if the reseller or service bureau model is right for me? Our recommendation for most people is to start as a reseller. You may think you're giving away some of your profit margin at first, but it's nothing compared to the expense you will encounter as a full service bureau. Think of it this way. Would you rather have $500,000 in revenue with $400,000 in expenses, or earn $400,000 with $100,000 in expenses?
Why Becoming a Service Bureau or Reseller Is Worth It
Both resellers and service bureaus earn recurring revenue year after year, help other tax professionals grow their businesses, and create a long-term asset that continues generating income beyond tax season. Plus, you don't need to be a tax preparer to be successful as a service bureau or reseller.
If you’re entrepreneurial and ready to take your business to the next level, becoming a service bureau or reseller could be your smartest move yet.
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