[T-rex]

Are any of y’all interested in running your own CPA show at some point? I know I am. My days as an employee are numbered. I’m simply not employee material.

I’ll be licensed in CA once I pass the exam, but because I live in TX, I’ll need to get licensed here in order to practice here. The TX requirements differ substantially from those of CA, so it may take me awhile to get reciprocity in TX. In the interim, I figure I can start a side bookkeeping business since I don’t need a CPA license for that. I’ll fire it up once I’m certain that I’ve passed the exam. I actually had a small bookkeeping business long ago, so I have some idea of what I need to do.

If anyone else is interested in starting his or her own CPA practice or bookkeeping business, maybe we can exchange ideas here on how to round up clients, how much to charge them, how to protect client information, what the best software programs are, etc.

AUD - 95, BEC - 85
REG - 85, Rawrrrrrr FAR - 88
Used Becker for all sections.
CA candidate not residing in CA

[mike_terror]

I would definitely love to eventually work for myself in the future. But as of right now I'm only 23, with no experience.

I've always had questions such as the ones you've listed, I honestly wouldn't even know where to start or how to handle the procedures of starting up a business and creating a plan that works. Most of the knowledge you have is it mainly through experience and absorbing the rules of the game / learning the system through past employers?

Whatever you can share would be great.

[Anonymous]

Suggestion #1: Make your own business cards by writing your information on Post-It Notes! Clients will surely admire your creativity in spite of your frugality!

Suggestion #2: Keep all customer information in the cloud with a really mean pitbull guarding your physical mainframe.

Suggestion #3: Respond to all e-mails in only CAPITAL LETTERS. Your enthusiasm is bound to convey itself through your large, emphatic keystrokes. Also, you can NEVER use enough exclamation points!!!!

Suggestion #4: Be sure to acquire an office location in the perfect area; as the adage goes, “location, location, location”. A physical site in a “tough” geographical area is preferable as it shows customers you have a no-nonsense attitude when it comes to physical threats!

Follow this quick, 4 suggestion guide and your entrepreneurial spirit is bound to soar you straight into a pile of money!

[kb24]

@Baseball – LOL!!!!!

FAR 4/1/11 - 89
AUD 4/15/11 - 85
REG 4/29/11 - 80
BEC 5/13/11 - 85

[mla1169]

I will probably do some type of bookkeeping side business. Wouldn't consider leaving a f/t job between health insurance benefits, short term and long term disability and 401k matching (not likely I would EVER make enough self employed to match the value of what I get from my employer)

But I will have a boatload of student loand that I would like to supplement my income for. And a vacation once in a while wouldn't kill me.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[yankeeaccountant]

Great thread…I am really interested to hear what you guys come up with.

[Anonymous]

I worked for a very small firm before coming to a big 4 and an ex co-worker and I from there plan on opening one once we get enough experience and cash flow.

Hands down, best bookkeeping software is Quickbooks. You can customize reports, journal entries are a breeze and clients can track payroll and even accept payments for services or product. I know other programs can do this also, but this is an easy to understand format and I liked changing the colors of everything. I should have been an art major haha

For tax software, I've had experience with Drake and Lacerte and Lacerte wins by a land slide. I honestly hate Turbo Tax.

For audit, well the best software I've ever used is what I am using now and it was a humongous overhall that took a lot of money to do. I will try and stay away from auditing but I know for a fact that is where the money is…oh well.

[jeff]

I worked in a small 5-6 person firm for 2 years and had around 10-15 clients that I did monthly accounting/tax compliance for.

Based on that experience, if I were to open my own firm, I would probably go back and spend a few years with a similar firm and then do it. From a liability standpoint, you really need to have your A-game locked and loaded from day one…the learning curve should be minimal otherwise you could really screw up if you hold yourself out as a CPA.

Just my (hopefully helpful) $.02

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

I am being groomed for the family accounting business. I worked for a Fortune 500 company (not in accounting) for 15 years and I absolutely love the freedom I have now.

Anyway, we use Drake and I think they are really reasonable in price and have fantastic customer service. I've never used Lacerte but hear it is really expensive.

Jeff is right about the experience. There's no way I'm ready to hang out the “CPA” shingle yet.

[Anonymous]

@Kb24 — Glad to see you're taking suggestion #3 to heart! You're well on your way to being a HUGE entrepreneurial success! 🙂

[T-rex]

For the next year or so, my business will focus on bookkeeping for CPA firms (including auditing firms) and law firms. I'll see how that goes and then go from there. It will be a very part-time gig as I don't plan to give up my full-time job at this point.

My first steps are to get my website going (so that I appear legit), get some business cards printed, and get myself up to speed on QuickBooks, which I haven't used in years. I've already got my LLC set up. Next, I'll work on rounding up a client or two. I'm not sure exactly how I'm going to solicit business yet, but I'll worry about that after I find out whether I passed FAR.

I'm definitely not ready to launch a CPA practice. I need to gain some experience at one before going down that path. I worked for two small CPA firms over a decade ago doing taxes, but that's too long ago to count.

I can't hold myself out as a CPA in TX until I get licensed here anyway. That may take me a couple of years, or it may not. It all depends on whether the TX board will accept my experience and education. I'll deal with this after I receive my CA license.

AUD - 95, BEC - 85
REG - 85, Rawrrrrrr FAR - 88
Used Becker for all sections.
CA candidate not residing in CA

[T-rex]

After a terrible day at work, I'm feeling even more inspired to get this bookkeeping show on the road. I'm doing a bit of research tonight as a matter of fact.

All the work nonsense only fuels my desire to get my business up and running. My goal is to have my first client before the end of the year. Let's see if I can pull this off.

Boy, do I hope I passed FAR!

AUD - 95, BEC - 85
REG - 85, Rawrrrrrr FAR - 88
Used Becker for all sections.
CA candidate not residing in CA

[Laura]

Good luck with the reciprocity in Texas…from what I've heard it's very difficult to get if the other state has less requirements than Texas. From what I just saw on the board you must meet the education and experience requirement. Does CA require the 150 hours the way Texas does?

As far as software etc, I've used QuickBooks, PeachTree, and Creative Solutions. They all have their pluses and minuses…I really like QuickBooks for the simplicity but remember because it is simple it also allows clients to think they know what they are doing and really hose up their books.

I've only used Lacerte and absolutely love it. Very easy to use, but I've never used anything else other than TurboTax for my personal return and TurboTax is terrible.

I admire your entrepreneurial attitude!!!

@baseball-you are awesome!! Seriously love your humor!

REG-80, 77, 77
BEC-67, 68, 71, 67, 71, 74, 71, 74, 72, 77
FAR- 72, 65,67, 53, 75 (truth be known the 53 was with 4 hours of studying)
AUD-58, 62, 72, 74, 74, 75
took 5 years but I'm DONE!!!!!!!!!!!!!!!

[Anonymous]

It's good to know my advice is appreciated. 🙂

[T-rex]

Thank you to everyone for your input!

@baseball, Of course your advice is appreciated!

@keeptrying, Thank you! CA has two different pathways. I'm following the one that requires 150 hours. TX has a minimum number of required accounting courses, and since it won't count some of my accounting courses, I fall short of meeting that requirement. Also, I have worked directly under a CPA for the past 3.5 years performing accounting-related tasks, but it doesn't look like TX will count this experience even though CA will. My other 3.5 years of accounting experience under a CPA would be acceptable to TX if it wasn't over 10 years old. Finally, TX allows CPAs with 3 years of work experience to waive the educational requirement in certain circumstances. If I can convince the board to count my old experience, then I might be able to get licensed in TX without having to take more accounting courses and switch jobs. I'm pretty schooled-out. I'll write a nice and very persuasive letter to the TX board after I get licensed in CA.

AUD - 95, BEC - 85
REG - 85, Rawrrrrrr FAR - 88
Used Becker for all sections.
CA candidate not residing in CA

[Anonymous]

Go T-Rex!

I'm not leaving my full-time job anytime soon, but I'm working on my bookkeeping/tax sideline. I've picked up lots of experience as volunteer treasurer for small nonprofits; just filed a 990 in fact. I have one paying client (my congregation — I said, I'll keep doing your books if you pay me a little and NEVER make me go to any more board meetings) just to practice being in business — invoicing, etc. Fortunately I have an in-house attorney (my spouse) to set up the LLC. Have set up my home office, hooray for tax deductions.

I briefly worked part time with a bookkeeping firm to get exposed to different types of business — good experience, but I left quickly because the situation was legally/ethically untenable; some of the business clients were obviously runnng every thing down to their McDonald's lunches through their business accounts, not payng payroll taxes, let alone workers comp, etc.

I use QuickBooks. What do you think about signing up for QuickBooks Pro Advisor? Do you think it's worth the $500 for the web exposure and resources? I know nothing about tax prep software other than TurboTax for my personal filings.– have you researched?

As soon as I get the OK from VA to use the CPA title, I'm going to do up business cards and magnets. (vistaprint.com — cheap). I have lots of women friends, acquaintances who have small home businesses: I can certainly help them with bookkeeping, setting up their own QB systems, and Schedule C's. I'll make the rounds of local craft fairs with the same target audience. Our real estate agent has expressed an interest in referring first-time homebuyers to me for tax prep. That's it for my marketing plan; I want to start small and slow with local clients. I've got a co-worker who teaches for Becker; I'm thinking that also might be a good idea to keep fresh.

[Author]

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