[Dan]

Hi All,

I’m looking to earn some extra money in a side job. I am currently a senior accountant working the normal Mon-Fri schedule. The biggest obstacle to finding a second job is that I can’t be at two places at the same time. All the job postings I’ve researched require you to be in their office during the week. I’m looking for something to supplement my current job. The only thing I can think of is to start my own tax practice. Does anyone have any other ideas? Ideally I want something to do on weekends or a few hours during the week that can work around my regular schedule.

Thanks!

[Recked]

Side tax practice is probably the most feasible, and save big from your day job.
Eventually you'll have enough clients on the side, plus savings, to make a go of it full time.

[eMeRGeD]

for doing returns on the side, what do you use to file them? Do you purchase your own software or….

[vbmer]

I used charge my ex-exmployer (F500 company) $2-3k a quarter for consultancy services. It took very little effort, since I already had an automated report system set up. I could've shopped it around to their competitors (and charged them an amount commensurate the IP and value it provides), but haven't done so yet out of loyalty, both to my ex-employer and my current firm.

As you get more experience and build your network, opportunities will present themselves if you're willing to dig for them and you're not scared to pick up the phone or send an email.

[Recked]

Yes, you need your own software to e-file returns.
The pay per return options for software can be cheap, look in to Drake. I don't use them personally but I hear they are cheap.

[Josh]

So I decided to knock on a few firm doors and as luck would have it there were a couple of CPA's willing to take in someone licensed (or soon to be in my case, just waiting on that good ol admin processing system) to do after 5pm work. I did this because I specifically like TaxWise & Ultratax software and my current cash flow and potential client list do not equal the cost of those nice things. I'd really rather do my own thing and set my own terms but I also really really love tax so if someone is willing to let me build my own clients while also cranking out for them I think it's a perfect situation for now. My day job could grow into something more demanding after the holiday so we'll see where the chips fall. I spent my first 5 years in a small firm growing various business lines so I think I'm kind of addicted to that structure and life.

[Recked]

So first off, a warning. Do not sign a non-compete, and outline your deal in writing. A written contract.
The last thing you need is to build up a book and then find out it's going to cost you a lawsuit if you try and take the clients with you.
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Secondly, Ultratax has a PRP option. About $300 for the upfront license, and then roughly $65 for each personal fed, state and efile, and 75-80 for each business entity, fed state and efile.
It's is certainly not the most cost effective way to go about getting software, but when you have limited funds and a small book of business, it makes the most sense as you try to grow.
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If you can work out a deal for after 5pm work with a CPA, and make the terms work out, then you are probably better off partnering up with someone who already has unlimited licenses, file cabinet, insurances, etc. I am on the PRP option and biting the bullet while I grow the book.

[Josh]

All great info Recked (as always). I've unfortunately had to sit through multiple non-compete lawsuits against others during my time at the small firm (we had a standard 2 year/50 mile non-compete) and completely agree with you that everyone should really discuss and contractually agree to specific terms if they go the route I chose. I'm lucky enough to have attorneys as clients/friends who've helped me construct a simple agreement that is essentially saying what's yours is yours and what's mine is mine with no limitations should we part ways other than both parties agreeing to not poach off each other. Sorry to turn this thread into a legal fest but that is a super important point Recked brought up. I'm really not a HUGE Ultratax fan, I just feel like it's too complex sometimes where it can be more simple like Taxwise and twice the cost but it does print much more professional 990's, 1120's, and 1041's plus it connects to the million other programs we use as professionals (LOVE the fixed asset manager, it was amazing for audit clients). I wish we could sticky a thread or something just for the “after exam” life conversations like these.

[Josh]

Just wanted to add some update to the direction I've decided to go in for info sharing and (please feel free) feedback. Currently working a government job at a flat 40 hours with work from home and flex hours for $70k a year. We only do annual raises so the prediction currently is a bump to 78k-80k for passing the CPA. The first firm I happened to contact needed a CPA to help with a projected 150 or so returns and offered me $35/HR to do nights and weekends. No non-compete, just a simple agreement. I already have a handful of my own clients which they prefer I house separate from this arrangement so that still leaves me having to fork out cash for software and a simple setup for this year. I feel a tiny bit off about the pay considering my understanding of the business is tax only, $500 per return average, and swamped but then again it also sounds like the person I'm subbing in for primarily serviced 1040's with minor complexities.
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I'm curious what experience other people might have with the current going rate for a CPA moonlighting after hours?
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I'm a little worried cranking someone else's returns will detract from building my own clients this year but it feels like a great way to build reserves for now.
I really see myself diving into this full-time in the future but I feel like that's at least 2 years away when I have a comfortable nest egg to feed myself while transitioning from part-time to full-time client building. Not married, no kids, no plan to change that.

[Recked]

It's not the easiest thing to build a tax practice from scratch. Pretty much everyone already has a tax solution.
Some people might be the do it yourself type, and their life gets complicated, so they need to bring in a professional, but for the rest of the people – they already have a solution.
So you need to find people that are not happy with their current solution to switch over to you.
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I have no advice for a good hourly rate for a moonlighting CPA.
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When you are calculating the numbers to leave your government job, don't forget to factor in the value of that pension you will presumably be walking away from.
Depending on how many years you have in the system, and how many you need to collect. I might focus on grinding it out during tax season until you hit your years, and then think about making the transition to full time tax. Just my 2 cents. Pensions are nice.

[Author]

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