[iLikeMath]

I am exploring my options of non-traditional jobs (not 8-5 / Mon-Fri / 52 weeks a year) and I thought doing taxes for small businesses and individuals. Does anyone have any advice on how to get started on this? I live in California, have one year of work experience as a staff accountant at a Fortune 500 company, BS and MS in accounting, and CPA.

Any advice would be greatly appreciated!

FAR (10/1/13) - 86
REG (11/25/13) - 88
AUD (2/10/14) - 94
BEC (4/7/14) - 86

[Tux]

Just print up some business cards and start handing them out.

Get some tax software and tell everyone you know that you're self-employed and doing tax preparation.

A website would help too.

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[Lari Sa]

I'm interested in the getting into personal income taxes as well but i've never done a return in my life (my sister, who is a tax accoutant usually does my taxes). I dont feel comfortable handing out my business cards and telling people i know what i'm doing when clearly i dont any more than a textbook could teach me. How do i get into it? (i'm interested in something along the lines of working for someone after my 9-5 job where i can learn a thing or two by doing rather than reading)

AUD 85 (11.10 - expired), 0 (2.13), 82* (5.13)
BEC 49 (5.09), 38 (5.11), 75* (10.11)
REG 65 (2.11), 74 (11.11), 0 (2.12), 81* (4.12)
FAR 67 (5.12), 73 (12.12), 78* (2.13)

[Anonymous]

It's pretty rare to start up your own tax company without having some experience. At the very least, do your time in public accounting or even HR block. It would be hard to get business return experience without entering into public accounting though.

[Anonymous]

I thought everybody wanted to know how to get OUT of doing personal tax returns. The money is shite and people try to get you to do all sorts of illegal movements.

My thought is the $100 return isn't worth losing my license over.

[Lari Sa]

Just looking for extra income, wasn't planning on doing illegal things for $100, lol. Plus i like having options.

Btw, did big 4 for a short while but was doing monkey work mostly with zero exposure to tax returns.

AUD 85 (11.10 - expired), 0 (2.13), 82* (5.13)
BEC 49 (5.09), 38 (5.11), 75* (10.11)
REG 65 (2.11), 74 (11.11), 0 (2.12), 81* (4.12)
FAR 67 (5.12), 73 (12.12), 78* (2.13)

[Tux]

Like Smith, I recommend starting at HR Block, and/or do volunteer taxes.

For HR Block, contact them now, or soon, for work in the spring.

They might require that you take a class from them this fall in order to work in the spring.

Just know that they use their own software, so once you get experience there, you'll still need to learn on your own tax software that you buy for your own business, like ProSeries.

Another GREAT way to learn is through VITA – the volunteer tax assistance program.

There's one in most communities. You'll do tax returns for families making under a certain amount per year.

SUPER way to learn. They also have classes in the fall, which I believe is a requirement for volunteering in the spring.

So, research your options now.

You can also network to meet some CPA's and EA's in your area. Let them know that you want to get experience. Many of them work nights and weekends in season, so you can still do it around another job.

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[impska]

Lari: Why don't you ask your sister to help you out? Your could work for her for a busy season and possibly use her as a reviewer after that.

For OP: To get experience with individuals and small businesses, you probably want to look at seasonal work at smaller firms. It could potentially be risky to go into business for yourself full time after only one busy season, but the seasonal nature of the work puts you in a tight spot unless you can find a full time gig. You may want to supplement with a bookkeeping business or something else.

The ideal experience track would probably be something like:

Spring 2015 – seasonal internship. Summer-Winter 2015 – something to bring income in. Spring 2016, a second busy-season run at a firm. Summer-Winter 2016 – something to bring income in + build client base for Spring 2017.

Also, don't listen to Billbrasskey. If someone wants you to plug grandma's SSI into your tax software for $100, then so be it. But for the most part, you're going to want to raise the bar price-wise. Also, if anyone asks you do something illegal, you simply document your refusal and dump them as a client. I know many tax accountants, and I've never known anyone who actually had to do that.

REG - 94
BEC - 92
FAR - 92
AUD - 99

[TiffaNiffaNi]

Hi ILikeMath,

My advice is to find a small CPA practice (1-2 practitioners) that are looking to retire in the next couple of (2-5) years. You will be trained with the intention of taking over the business when they leave. Depending on the value of the client list that they would essentially be handing off to you, you will likely need to have a lump sum payment + (or) a promise of residuals.

This approach can be very beneficial for a number of reasons:

1. You get training

-You get to see what it truly is like to be a sole-practioner (the day-to-day as well as long-term).

2. You get a ready-made client base

-Caveat: Not 100% of the clients will stick with you upon the other CPA's retirement, but you can strive to cultivate these relationships. The retiring CPA can help in this area by introducing you to everyone and letting them know that you have his/her full confidence

3. You have a “help” line

-Retiring CPA's often still like to be involved on some level and would likely enjoy periodic questions from you after you take over.

The nice thing about it too is that when a CPA is looking to retire, he has already dwindled down the business somewhat so that you won't get hammered right away. This way, you are also able to bring on some of “your” clients. For instance, the CPA from whom I will be taking over hasn't offered payroll services in a long time because (since he doesn't have a partner), he hasn't wanted to have to be “around” 365 days/year. This is a service that I can add, which I will head, and he can back me up on in those rare instances when I'm on vacation.

So the question is: How do you find these soon-to-be-retired CPA's? Unfortunately, I think it's gotta be word of mouth. Network. Start with your family. “Who does your taxes, Aunt So-and-so?

FAR: 7/17/14- 79
AUD: 8/20/14- 91
REG: 10/1/14- 88
BEC: 11/10/14- 85

Becker Self-Study

[Sarah1421]

Wow – great advice TiffaNiffaNi. I'm considering doing something similar to what you outlined… do you mind sharing how you are compensated (benefits and pay) in a small firm like that? Granted, I know salary expectations are different all over the country, but this is a very specific situation. I honestly have no concept what to expect.

Word of mouth is critical and remember to think outside the box – ask your doctors or other small business owners who does their taxes/accounting services… I have a couple great leads from that route.

FAR - 90
AUD - 91
BEC - 86
REG - 87

[h0wdyus]

@tiffan…

You bring up a good point about retiring CPA. Like you mentioned Payroll Services can be added. What else do you think can be added to a CPA Sole Prop.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[TiffaNiffaNi]

Hi!

I may have rambled here a bit:

@Sarah1421: I have not negotiated salary yet. To be honest, I am willing to accept a very low salary during “training”- to the point of just covering my living expenses. This may not be for everyone but the knowledge that I will gain will be invaluable– how to work for myself. Once I have that knowledge (and the other things I outlined above), there is practically no limit to what I can make. I could grow the business/take on another partner(s), or I could keep the work to a minimum, focus on family, etc. If I wanted to make “good” money right away, I would go to the Big4..Don't get me wrong, I like money just as much as the next guy, but if I'm going to work 70 hours per week, it's going to be for myself. I prefer to put in another couple of years as the equivalent of a poor grad student (although hopefully that's not the case!) to achieve the freedom and flexibility in the future that I desire. (I plan on keeping my current job at part-time until it's no longer needed.)

If I had to venture a guess, the sole practitioner that I will be working for currently makes around $100k per year (Ohio). This is with business dwindled down (which he was doing before he knew that I wanted to take over). Right now, he is busy during tax season but minimally throughout the year (and vacations during this time). He makes like $40k during tax season, and I know that 1 client has a $32k annual contract with him. This particular client is a franchisee small business with 2 locations. The CPA says the work is repetitive and minimal for this client. I assume it consists of general bookkeeping duties, compilations, consulting services, etc.

@h0wdyus: I think I gave some examples above but basically anything other than audits. Business start-ups are also a great area (and one that I would like to focus on). One of my friends runs an IT business. For years we've been toying with the idea of getting together to offer comprehensive start-up services where he would offer POS hardware/software, website, e-doc systems and I would help them structure their accounting systems (quickbooks, etc.) and do their taxes. A one-stop shop..

FAR: 7/17/14- 79
AUD: 8/20/14- 91
REG: 10/1/14- 88
BEC: 11/10/14- 85

Becker Self-Study

[Sarah1421]

Hi again TiffaNiffaNi –

Thanks for the response. I feel EXACTLY the same way about salary here – I want the training more than I want another $10,000 a year. I plan to meet with the firms I've been referred to this fall to discuss what they are looking for as well as what I'm hoping for. I feel pretty clueless because I can't quite determine the balance between the “favors” we are doing each other (after all, it's certainly a beneficial situation for both parties). I don't want to leave money on the table or be a brat thinking I deserve more. Regardless, I'd rather have my eye on the future… making less now could set us up for success for the rest of our life.

Furthermore, I'm torn because I love the entrepreneurial spirit (and potential!!), but my husband and I already run one business and have another in the baby stages. The stress is incredible because it ALWAYS comes down to you. As much as I fantasize about what you are saying above (the sky is certainly the limit), I wonder if our life could handle another business.

Regardless, best of luck to you! Excellent points, well written – you'll be great.

FAR - 90
AUD - 91
BEC - 86
REG - 87

[Anonymous]

@TiffaNiffaNi, I 100% agree with you on the retiring CPA being an excellent source of training and future business. Though I was originally hired at my firm as an administrative assistant, I dedicated myself to learning everything I could and moving into an accounting position and a little under 5 years later (with my MSA in hand) I'm moved into a senior staff accountant position with partnership talks already in the works and my employer wanting to retire in the new few years. It took a lot of hours and hard work, but it's very satisfying to know you have a ready-made client base waiting for you.

[Author]

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