Tax Preparer Merchant Cash Advance & Business Funding
When do tax preparers need funding, and for which costs?
Tax prep firms: cash for pre-season setup and summer gaps.
Cost, credit, speed and stacking
Cost
Credit
Speed
Stacking
Afterfirst MCA is a marketplace, not a funder. A tax office applies once, and our team shops it to funders whose programs fit your file.
We're not a funder.
We don't fund deals ourselves. We shop yours with funders who do, so you see more than one offer.
Only funders that fit.
Your file goes to funders that work with your industry and your deal size. Nobody else sees it.
You make the call.
Every offer comes to you in writing. Nothing happens until you pick one.
- What it costs to apply
- Nothing. Applying costs you nothing, and Afterfirst MCA charges you no fee.
- Credit
- Ask us how each funder checks credit before you agree to anything.
- Speed
- We call you back and talk with you before your file goes to any funder.
- Offers
- Every offer shows the total payback, the payment amount, how often it comes out, and the term.
How much does tax preparation work change by month?
Tax preparation jobs more than double from late summer to February.
The table shows our month index from five years of BLS payroll data, where 100 is an average month.
| Month | Job index (100 = average month) | What the month usually means |
|---|---|---|
| January | 139.5 | Season opens |
| February | 152.6 | Peak filing season |
| March | 150.5 | Peak filing season |
| April | 147.3 | Peak filing season |
| May | 80.2 | Work drops off |
| June | 70.2 | Off-season low |
| July | 68.0 | Off-season low |
| August | 66.2 | Off-season low |
| September | 66.5 | Off-season low |
| October | 71.0 | Extension returns; setup starts |
| November | 83.9 | Pre-season hiring |
| December | 104.1 | Pre-season hiring |
In the latest full year of data, the industry had 145.7 thousand jobs in March and 70.1 thousand in August, per the same BLS series.
How we built the index
We took the BLS series for tax preparation services, CEU6054121301, before seasonal adjustment. For each month we divided jobs by a centered 12-month average. Then we averaged five years and scaled the year so an average month is 100. BLS publishes the job counts, and the index is our own math.
Which months need cash, and for what?
Most tax preparers face two cash gaps: setup costs before the season, and fixed costs through the slow months.
| Window | Months | Common costs | What statements may show |
|---|---|---|---|
| Pre-season setup | October to December | Seasonal staff, training, tax software, office space, ads | Deposits still low while costs rise |
| Off-season gap | May to October | Rent, core staff pay, software renewals, utilities | Deposits falling after April |
| Filing season | January to April | Pay for seasonal preparers | Most of the year's deposits |
Pre-season setup for tax preparers
An office that adds preparers for the season has to find, hire and train them before January. Software licenses and front-office leases often come due in the same stretch. Funding that covers Payroll or Expansion is common for this window.
Rent and core staff through the off-season
From May on, most returns are done, yet rent and year-round staff still cost the same. That is a Cash flow gap rather than a growth cost, and a funder will read it that way.
Filing deadlines that set the calendar
IRS Publication 509 sets the rhythm. For individuals who file on a calendar year, Form 1040 is due on the 15th day of the 4th month after the tax year ends. Form 4868 gives an automatic 6-month extension.
What the extension rule means for the fall
Extended returns keep some work going into the fall. On our index, October sits a little above the summer low, and the steep climb starts in November.
What do funders read when tax preparers apply?
Funders read recent bank statements first, and statements from tax preparers change a lot by month.
This part is practitioner view, not measured data. One funding firm says underwriters weigh the last three months of statements most. For a tax office that applies in October, those months are July to September, the low point on the index. An office that applies in May has February to April on the statements instead.
Timing before the holidays
Another practitioner source, a broker firm, says funding work slows after Thanksgiving. That is one firm's view, but it's a reason not to leave a pre-season request to December. Each funder sets its own pace, so ask our team what the funders on your file usually do.
A tax office that already has an advance
A tax office with an open advance can still apply. The fit may be a Second position, a consolidation, or waiting until the season's deposits land. The Stacking guide explains how funders read more than one open position.
Comparing what comes back
When offers come back for tax preparers, we put them on one Comparison sheet with the same lines, so you can see net cash, total payback and the payment side by side.
FAQ
What does funding cost a tax office?
Cost is the gap between the total payback and the cash you receive, plus any fees taken out. Each funder quotes its own terms, and we line them up so you can compare. Applying costs you nothing, and Afterfirst MCA charges you no fee.
How does credit fit into a tax firm's application?
Ask how any credit review works before you sign. Each funder sets its own process. Our team can put your questions to the funders on your file first.
How long does it take to get offers?
We don't promise a timeline, because each funder works on its own schedule. A file with full statements and a clear list of open advances draws fewer questions. Starting before the holidays leaves room for those questions.
Can a tax office with an open advance apply?
Yes, list every open advance in your file. Funders will see the payment on the statements anyway. Depending on the numbers, the fit may be a second position, a consolidation, or waiting.
Should a tax office apply during the season or after it?
It depends on the funder and on what your statements show. Some practitioners say the latest months carry the most weight, so a file after April shows peak deposits. We read your file and tell you what the timing means for it.
Next step
Tax preparers can Apply now and list every open advance, or Ask our team about timing first. Availability varies by state, so confirm with us before applying.
Call 877-FUND-654Peak season and off-season worked through
Example: a practice deposits $90,000 in each of February and March, then about $12,000 a month from May through December. A fixed debit of $250 each business day, about $5,250 a month, takes 5.8% of a peak month and 43.8% of an off-season month. A term that ends before the off-season, or a payment that follows deposits, fits that pattern better.
Sources
- U.S. Bureau of Labor Statistics, CES time series files, series CEU6054121301 (tax preparation services, not seasonally adjusted): the monthly job counts behind this page's index table, including 145.7 thousand jobs in March and 70.1 thousand in August.
- IRS Publication 509, Tax Calendars: the Form 1040 due-date rule and the automatic 6-month extension on Form 4868 cited under filing deadlines.
- Practitioner commentary: practitioner view that underwriters weigh the last three months of statements; opinion, not measured data.
- Total Merchant Resources, What slows MCA brokers down in winter: practitioner view that funding work slows after Thanksgiving; one firm's opinion.
Which funding options fit tax preparers?
Each page runs one option against this industry's slow months.
Business line of credit for tax preparers
A draw sized for August, repaid in thirds, with the interest on the balance worked out.
Revenue-based financing for tax preparers
A remittance that moves with revenue, so August sends less, and the months to reach the repayment cap.
Send one file.
See what fits.
Call 877-FUND-654 with questions.