[truehooper2000]

Hi everyone. I work in a big city at a CPA firm specializing in high net worth tax consulting. Most of my career (past 10 years) has been in this line of work where I am doing solely tax preparing and reviewing of complex individual tax returns. I am worried that I will pigeon holed into this my whole career. I read a lot on the forums how the skills people gain in audit transfer to many other opportunities in many different roles. The pay is good for where I’m at in my career, but my only options are really to stay in 1040 work and work my way up the totem pole or go out on my own and start my own practice. Not that these are necessarily bad options but it seems so limited compared to other disciplines within accounting. Anyone else in the same boat or have stories of where they ended up in their career? Thanks !

[CPA2BEE]

I know a guy who only prepares primarily 1040-EZ's, charges $100 per return, and has 1,200 clients. He works out of his home, so his only real expenses are tax software, printing, etc. Plus he gets home office deductions. Once you do the math, he's pulling in over 6 figures every year and keeping most of it. Not a bad way of life at all.

I can't say this is where I “ended up” in my career because of my age, but this is definitely the direction I want to go in. I'd like to run my own practice focusing on high net worth individuals and small businesses (hopefully mainly S-Corps). My grandfather and mother are both EA's, and their businesses consist of mainly individuals and small businesses – both of them have had greatly successful careers in doing that.

However, I think a lot of it has to do with location as well. Being in Orange County, there are a ton of prospects for clients. Could be a different story trying to start your own practice in a small mid-west town or something.

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[marqzho]

CPA2BEE

The guy you're talking about is me in my dream LOL I always want to start a practice like this.

REG 90
FAR 95
AUD 98
BEC 84

[Mayo]

“know a guy who only prepares primarily 1040-EZ's, charges $100 per return, and has 1,200 clients. He works out of his home, so his only real expenses are tax software, printing, etc”

How does he get clients?

Mayo, BBA, Macc

[CPA2BEE]

Referrals and a strong Google presence in the area. Same with my mother, she has over 500 clients (businesses and individuals) and she doesn't even have a website – all word of mouth referrals.

South OC is a goldmine for this stuff. I have worked for 2 small CPA firms in the region, and they both have one problem in common with my mom's/grandpa's businesses: they have new clients coming to them all the time, but don't have the capacity to take on any more. This is a good problem to have – and the way I see it, something like 35% of active CPAs are baby boomers who will retire in the next 10-15 years, which just opens up the door even more small bus. and 1040 prep.

I am all about starting your own practice.

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[marqzho]

If I had had all these clients, I would have hired a college student, paid him $12 an hour and had him do all the work for me. 1040EZ LOL

REG 90
FAR 95
AUD 98
BEC 84

[Anonymous]

I work in high net worth tax consulting, but we do more trust income tax returns than individual returns. The high net worth clientele has a lot of estate planning and thus trust tax issues.

[Mayo]

“If I had had all these clients, I would have hired a college student, paid him $12 an hour and had him do all the work for me. 1040EZ LOL”

Pay? Can we say “unpaid internship experience”? Lol.

Mayo, BBA, Macc

[Lost1]

Usually, the meat is on the entity tax returns not 1040s. Most firms service the executives or owners individual returns pretty much for free to bring in the other work. Can there be high net worth individuals who need a lot of tax planning and therefore can generate fees? Yes, most of the high net worth individuals own/run companies/trusts. I think it's better to specialize in something (Estate or partnership). Yes, individual tax issues can get really complicated but most of the tax planning occurs at the income generating entity level, usually the investments. I think 1040 specialists will be vulnerable and susceptible to market/technology changes in the future. I think the advances of tax software will make it increasingly more difficult for those 1040 specialists.

"If you can do it, I can do it better."

[jm962011]

Truehopper, here is my 2 cents: if you want to stay in the high net worth area, you're going to have to say in public accounting (either at your current firm or another firm) for the long haul or go out on your own because your skill set (of 1040 prep or planning) isn't going to be needed at a corporation with a tax department. MAYBE if your 1040 prep includes payroll skills, you could get a payroll job in corporate.

Or maybe you want a broader tax experience (want to do some 1065s, 1120s, etc) along with your 1040 knowledge, you could consider a firm that isn't so specialized. So if you get that 1065 and 1120 experience, you'll be able to transfer that tax knowledge to a corporation looking for an income tax manager.

[Anonymous]

The 1040 business is shrinking but so are the number of practitioners. So there are no shortage of clients available. I think the biggest threat is the IRS auto-preparing the returns. That would eliminate all the EZ´s and many others. It is bound to happen one day but who knows since Intuit & Block have strong lobbying.

[Author]

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