Discussion:Ex- H&R BLOCK???
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Discussion Forum Index --> Tax Questions --> Ex- H&R BLOCK???
| 8 December 2007 | |
| Hello,
I am interested in hearing from former H&R Block tax pros who left Block to start their own practices, as I am considering doing the same. I have very basic questions:
I understand the legal constraints imposed by the employment agreement we all sign, as it pertains to contacting and doing business with clients I worked with while at Block. I understand the ethical constraints against leaving the company and violating this agreement. If you want to respond privately, please contact me at newtaxguy@yahoo.com Thanks in advance for your help. The New Tax Guy | |
TheTinCook (talk|edits) said: | 8 December 2007 |
| Block sues people who poach clients. They had a big deal in our newsletter about it. | |
Calculator (talk|edits) said: | 8 December 2007 |
| I know an instance where H & R Block could have sued but didn't. I worked at a franchise and it was sold. The former owner, over a number of years, was taking H & R Block returns and doing them through her bookkeeping office. Then when the franchise was sold, she sent a letter to the clients and said the office was moving to another location and her daughter would be taking over the clients. A number of clients were upset over this because they thought their returns were being done by H & R Block. H & R Block didn't sue, they left it up to the new franchise owners who thought it would create a lot of ill will in the community to pursue a lawsuit. Additionally, the franchise owners would have had to pay the legal fees, not the corporation. | |
Southparkcpa (talk|edits) said: | 8 December 2007 |
| In Charlotte NC, where I live there is such a need for tax preparers. I know this is true in many cities. When I began my practice with NO clients, I arranged a per diem gig with a CPA firm for $30 an hour back in 1997. I worked for them 20 to 30 hours a week. In the summer it was tough but I advertised as a Quickbooks expert and did traing at VERY reduced and enbarassing rates. But I needed to eat. After 2 years was billing out over 100K on my own.
My advice is to NOT steal clients. Take the high road. If 10 good clients follow you OK but arrange a job with a tax firm on a contract basis. You are worth a minimum of $25 to 30 per hour. I would hire you in a second. Learn at that firm, be honest and in 2 years you will have a good business, in 5 years you will be doing well. I would recommend 2 books that are small and quick reads and were invaluable to me. E myth re visited by Gerber and Walk like a giant, sell like a mad man. I believe this is out of print but check amazon. I apply strategies from both and have never looked back. You can do this, the environment is as good as ever. | |
Ksnoopytax (talk|edits) said: | 8 December 2007 |
| While I was in college, I worked for Jackson Hewitt for two years, the first as an associate and the second as a manager of a branch. I was a little concerned about the non-compete agreement they had me sign when I began working there but once I had a talk with the franchise owner about it, it seemed that he wouldn't hold me to it as long as I am not being malicious about stealing clients. The branch I took over as manager previously had a woman who was preparing tax returns for Jackson Hewitt customers and then printing them out and deleting them out of the system. After that, she had the customers make the check out to her personally. Any manager that was paying attention should have caught it.
Clients that go to H&R block or Jackson Hewitt are not very loyal. From my experience, often what will happen is that the client will bring in their tax information and you will do a free tax evaluation to see what their refund will be. If they don't like the outcome, they will just go somewhere else and have the same thing done and compare the results. I don't see how you can build a profitable client base from H&R block customers unless you build a good relationship with many of them and their tax return is large enough to warrant extra costs you may have to charge since you won't be doing 1500 tax returns in bulk and one H&R block location may easily do that. As far as tax preparation experience at Jackson Hewitt goes, it's horrible. After being out of school and learning the tax law, I don't see how anyone could go to a Jackson Hewitt office and be confident that they have maximized their tax savings and that their tax return is done correctly. If you get a manager there that has been doing tax returns for 5 or more years then you may have a chance, but normally the person doing your tax return has MAYBE a couple weeks of tax training and is asking you questions that he or she does not fully understand the tax ramifications. | |
Bottom Line (talk|edits) said: | 8 December 2007 |
| I was the night manager of a JH for a couple of years. That meant that I got paid minimum wage plus 50 cents for fixing all the broken returns. Preparers were paid minimum wage plus commission. Frequently they made mistakes when entering data that I then had to correct in order to transmit the return. Regardless of how much time I spent fixing their mistakes, I was not allowed to change the preparer name from them to me. I left because I felt the pay scale was not fair. I was more knowledgeable and had a position of responsibility but was making less money than the people that were doing the EIC/refund anticipation loan returns. I had no interest in taking this type of client with me when I left. | |
| 9 December 2007 | |
| A fellow EA manages one of the local H&Rs. I considered it, then counted the beans, and opened up my own office my first year. I've been starving for over two years now, but don't regret not going to the salt mines. Besides, I would probably be twice as starving had I gone that route. I still need some real marketing help. Poverty sucks! | |
| 9 December 2007 | |
| SouthPark: I just bought the E-Myth CD Audiobook on ebay for $23.50 with shipping. I don't like to read, unless it's tax law stuff...Thanks for the titles...
Mike G.,EA | |
| 9 December 2007 | |
| Southparkcpa thanks for the book(s) information. You mention you did a per diem "gig" for about 20-30 hours a week with a CPA firm. Question: Can one do a per diem gig as an independent contractor or only as a W-2 employee? You did mention "contract basis". Please explain. Thanks again for the information posted, I will order the books today.
Trixied1$```` | |
| 10 December 2007 | |
| I don't think it would be proper to categorize all preparers at these franchises as incompetent. I worked at a Block office for well over 10 years. And while it is true that some preparers have minimal knowledge, some might surprise you with their expertise. Personally, I became an Enrolled Agent some years ago. I know I have made mistakes, but I have had to correct mistakes made by CPAs also. If anyone in this profession claims to know it all ...well, I guess their ignorance is surpassed only by their arrogance. | |
Bottom Line (talk|edits) said: | 10 December 2007 |
| I think some of these issues have to do with the individual franchise owners and where the stores are located. The man that owned the franchise where I worked was only in the office about 10 hours a week and then he did such important things as vacuuming the carpet. Headquarters frequently called looking for him and then accused the managers of not relaying messages to him because he hadn't returned the call. After two years they pulled the franchise because of so many complaints. He had bought the franchise thinking that it would run itself and he could just rake in the profits. | |
| 12 December 2007 | |
After six years at Block I can safely (but unscientifically) report that:
However, initiating this discussion it was never my intention to debate the merits of Block. I was (and remain) interested in hearing from former H&R Block tax pros who left Block to start their own practices, as I am considering doing the same. I have very basic questions: How has it been? Have clients followed you? Under what circumstances? Has Block made any efforts to interfere with you in your new enterprise? Thanks to all who have responded thus far, and thanks in advance to those of you who might still respond. The New Tax Guy | |
Ksnoopytax (talk|edits) said: | 12 December 2007 |
| It is unfair to put all of the preparers in one basket. I was commenting on my specific experience which was not at Block but with another competitor which has received much more bad publicity. Hopefully, someone here can answer Newtaxguy's question. | |
| 12 December 2007 | |
| I worked for Block 28 years ago. I worked for them for two years and they gouged me on the year-end bonus clause. I was so upset I didn't care about the no compete clause and went out and bought an old house, converted it to an office and went to work. The first year was rough. I still remember the gross income, $529 that year. I have since fixed up an office in my home and have worked out of my house for the past several years. The biggest problem I have these days are too many clients. I currently do about 550 returns a year and other than my wife answering the phone do it all myself. I lose a few clients each year through moving, divorces, selling the business ect and only try to replace the number I think I may lose - usually about 20. After that I'm not too interested in taking on new people.
There is life after Block.
| |
Bottom Line (talk|edits) said: | 15 December 2007 |
| Your Block office must be much different from the JH office I worked at. The preparers did not have access to the customer list and returns were never prepared by the same preparer two years in a row. The clients came in and the return was prepared by the next available preparer. | |
| 15 December 2007 | |
| I did not take any clients from Block. Just started from scratch. Thats probably why the first couple years were so lean.
I had a second job at the time, worked nights there and tried to start the tax business during the day. Ray | |
| 16 December 2007 | |
| I worked @ HR for three yrs. In the third year, on one of those busy last few days, I dropped off three night deposit bags, one mine and two belonging to other employees, at the bank. The bank lost them. One turned up a week later, in some odd location at the bank. One a month later behind some crevasse at the bank. And the other never turned up at all. The docked my pay for the missing deposit bag, which made it look like I stole the money rather than the bank lost it.
I was insulted and upset that they docked my bonus by a whole day's worth of takings and left. I went to work for a small franchise firm with 25 offices for 11 years. I then went to a private company handling only high net worth clients for five years. Four years ago, I started my own company. I have two clients who have followed me since my H&R days, through all the different companies. No one minds if you take a couple clients, as they realize some will not return when they find out you've left. But more than a couple is a problem. I negotiated a list of 13 clients with my employer at the private company, and four months later they tried to sue me to get them back. I saw four former employers get sued by the small franchise firm; all but one lost. Don't be greedy, keep only the ones that have become your friends. | |
