[AGI]

I need some advise.

I just got my license a month ago and my friend call me up today offering me to join her newly formed business as a freelance CPA to provide individual taxation and bookkeeping services. I am skeptical and not confident if this is what I should do. Personally, I am very not confident that I can do my own business yet. What if I did something wrong?

I had no experience in individual taxation, other than filing my own tax. All of her clients are business owners, so their taxes will be more difficult.

I don’t know what will possibility happened if I screw up someone’s taxation. Am I supposed to buy some sort of tax insurance? Maybe it’s a bad idea to do that from the very beginning. I should not go into this project at all.

New York - NYC
Passed CPA Exam (11/2014)
In search for a position in NYC that will fulfills the license requirement.

[Recked]

It sounds like a pretty big step, and possibly a daunting task to start out on your own with no experience.
I would probably not encourage you to take this route.

If you do take the leap, you definitely need E&O insurance, and a cyber rider is recommended as well.
AON (through or partnered with AICPA) is a very affordable option for someone just starting out.

I can't imagine trying to jump out on my own without some years of experience.
Is your friend willing or able to mentor you, who will you have to ask questions?
It is common for accountants and attorneys to tell a client they don't know the answer, but they know how to find the answer, and then do research and provide the answer to the client at a later date.
But… you can't do that with every single question they ask. You need a decent knowledge-base and then “fake it 'til you make it” from there.

I'd recommend 3-5 tax seasons before making the leap, but try and build your book of business on the side if possible as fast as possible.

[AGI]

@Recked
I agreeded with you. I don't think I'll do the deal. My friend is not an accountant, she's an investor in the wall street moving to setup her own company. She has no accounting background and I have never worked in an accounting firm. So basically, I have zero experience in terms of this kind of business.

I only got the license because I took the test as my school recommended, I don't think I'll ever use it.

I'm not interested in opening my own business, as I have a pretty stable job. I only thought about it when the phone call came.

Maybe I'll recommend some of my CPA friends to her for business, and take commission in between.

New York - NYC
Passed CPA Exam (11/2014)
In search for a position in NYC that will fulfills the license requirement.

[Recked]

Send em my way.
I'm about 2 hours North of NYC and working on building my book of business.
Would happily pay a finder fee after I get paid from the client.

[ellabella]

This depends if they are willing to train. Even the non-CPA folks at H and R Block get some on-the-job training, and you should too. There is a difference between what we learn in the classroom vs. client requirements. I'm studying for the CPA (with UWorld Roger), and though I can demonstrate knowledge of tax, I would want to learn the ropes on the job. When I was a staff accountant, I learned much more than what was taught in the classroom.

[Star86]

I believe that all of the factors discussed thus far in this thread should be considered in addition to your comfort level. If you are dealing with clients and you lack comfort and confidence in being able to do their taxes, they will sense it and that may hinder business.

[AGI]

Hey guys,

Thank you for all the feedbacks. I've decided I'll not do it.

But instead of a completely rejection, I've offer her assistant in early stage of the business. Like recruiting a CPA / accounting, and hosting a training for other staff members on accounting 101. Stuff that I knows how to do.

I think this middle ground might be a better idea, she gets what she needed, and I will get like a free try on how to establish a business and how accounting firms will work (maybe).

I personally don't think I have the personality to open my own firm, or even finding my own clients. I've been to accounting firms interviews for maybe a dozen times and no one wants to take me. I probabaly better fit working for big companies in general accounting.

New York - NYC
Passed CPA Exam (11/2014)
In search for a position in NYC that will fulfills the license requirement.

[Author]

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