[kianakamaile]

Hi All,

I recently became licensed and I’m itching to be able to work from home. I haven’t come by very many virtual accounting jobs so it seems like the best bet would be to start my own thing on the side. I’d keep my full time job until I could build up the side business. I’d like to do some book-keeping and tax work.

Any way my question is – how do you get started?

I know I’d have to find an accounting/tax software, get a PTIN with the IRS, etc. I’m worried about the legality of what I want to do. I live in Florida – do I have to register in other states if I accept work from clients all over the U.S.? I am so lost (and also scared). Any help/advice is appreciated!

THANK YOU IN ADVANCE 🙂

[Missy]

What experience do you have?

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[kianakamaile]

I have 5 years of experience at a CPA firm. We focus on tax and bookkeeping for private practice doctors.

[Missy]

Here's my caveat about doing this for yourself. I do and have done bookkeeping on the side, its a nice little income stream that I use for hiring others to do stuff for me (1 hour of bookkeeping that I do pays for 2-3 hours of yardwork!)

If you're looking to replace a full time job, you'll need revenues of about 1.5 times your annual salary (unless someone else provides your health insurance benefits, then maybe only 1.25 times your annual salary because you'll be responsible for self employment taxes, will want to pick up some liability insurance, and probably some type of AFLAC or supplemental insurance in case you suddenly become sick or hurt, and will want a bit of a cushion in case you lose a client or two)

For bookkeeping even with a CPA license you're doing well to get $30-$40 per hour. Very few small businesses are going to pay premium dollars close to $100/hr for what they can get from an experienced bookkeeper for $15-$20 hr. Theres some value added in having a CPA keep your books vs someone else, but its not going to score you thousands per client per month.

If you've got tax experience then yeah you can charge a higher billable rate per hour but remember just because you're WORTH $150 hr doesn't mean a small business can afford it or will leave whoever they're currently using.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[kianakamaile]

Thanks so much, Missy! I appreciate your input.

A friend of a friend of a friend owns 15 restaurants and asked if I would keep their books and help with their tax returns. It seems like a lot of work while also working FT so I may ask to take only 2 or 3 of the restaurants at first.

[Tncincy]

Kianakamaile: Hey go for it. You've worked hard to pass the exam. The key is that CPA spells professional. The clients will expect a professional. If you can help with the restaurants that would be great experience but understand even though they are friends they will expect professional. I would also add to what Missy says you might not make a million dollars up front, but don't low ball yourself. Because once you do that raising prices will be messy. People don't like to pay much for anything now a days, not even for professional service. You do want to be paid as a professional, don't work for free. I hope this makes sense. Getting off the ground will be a research task but it can be done.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Author]

Replies