Discussion:Starting an accounting/tax/financia planningl practice
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| 26 October 2008 | |
| Need ideas on starting own practice. I would very much appreciate advice especially from those who've been there and done that.
1.) What do you think is better:
2.) I know prohorizons.com or accountingpracticesales.com, do you guys have any knowledge or experience working with these firms, please share them. Any bad experiences or knowledge? Or do you suggest any resource/firm for listing. 3.) Any warnings, caveats, in buying or starting a business. 4.) Any strategies to thrive in this profession. 5.) I have this tendency in not getting a good initial impression because I usually have to look things up before I get the answer. What are your suggestions in getting AND maintaining the client's trust especially for a person who's not quick to think on his feet when potential/existing clients asks questions. Thank you so much. | |
| October 26, 2008 | |
| GG, did you know TA has a business growth community? You might want to take a look at the discussions there. | |
Death&Taxes (talk|edits) said: | 26 October 2008 |
| "I have this tendency in not getting a good initial impression because I usually have to look things up before I get the answer."
When I did more interviewing and less returns by mail, I'd keep Pub 17 in a drawer [that is how long ago that was, when you could actually get a publication, not look it up on line] and I'd start to drawl away but say, 'let's see what it says in this book, which is kind of a Bible to IRS" and when you read something to your client, it really sinks in. I would bet I read the part about non-deductibility of transfer taxes on purchase of real estate a dozen times. Today I keep a copy of Quickfinder nearby for questions, and while not quite the same, it is pretty good. | |
| 26 October 2008 | |
| Don't worry GG, clients come in knowing the answer, then you tell them the answer, then they leave with the answer they came in with. They don't listen! Tell them just about anything, all they care about is the final number. Just make sure that's right and legal.
I recommend that people put in a crop before they start their practice. How much land do you have? Make sure you have something put aside to eat for about 3 years. If you can get asparagus to grow, it's a perennial, and should come in without seeding if you can get it started. That's some good food, and you will likely be able to sell some of it to the local restaurants around there. As far as drinking, if you don't drink, you might as well start now. Get a supply set aside just in case you miss a few electric bills and don't have heat. Do you know how to cut hair? That's a steady occupation, even during lean times. Unless you're a hippie, or hang around with those non-filing critters. I really don't know anyone that is thriving in the profession, but you might be able to eek out a few good years, if you don't mind sitting in the cheap seats when you go to the ball game. Does your wife have a steady job? That can help, leastwise until she divorces you. Learn how to sell on Ebay. Clip coupons before the newspapers go under. | |
| 26 October 2008 | |
| Or find a thriving CPA or EA or whatever that needs part time help so you can supplement your meager 1st year earnings. I'm guessing that buying a practice would start you off with a bigger bang, but since I've never done it, I don't know. | |
| October 26, 2008 | |
| Crow, Crow, Crow . . . at first I thought you spelled "corp" wrong and missed a couple of words, and then I realized you were playing your old "keep the Intuit software development guys guessing" game.
I agree it is a good idea to have some kind of backup plan to provide the bread and butter. | |
| 26 October 2008 | |
| Natalie, I did Jack Kevorkian's taxes for years, and kept him on as a client just in case the well ran dry, and I had to end it all. GG, good luck, don't let me steer you away from an exciting profession. It is still possible that your wife won't leave you, but I think the rest of what I wrote is merely prologue to what will be an inevitable descent into utter madness if you persist in this avocation...err vocation. | |
Southparkcpa (talk|edits) said: | 26 October 2008 |
| I am a CPA CFP with a practice in NC. My advice would be to work in a firm that does exactly what you are trying to do. Advice that I got and implemented was "work in a very small firm and see how it works". I left a big 6 firm to go to a small firm. That experience was invaluable, helped breed confidence. Clients can smell lack of confidence. Best of luck. | |
| 27 October 2008 | |
| I have a large tax practice, and a good size financial planning firm as well. It is best to fine a firm that you can learn from. Be part of the growth and add value, you will learn a lot. Clients are looking for experience and confidence, as well as accurate answers. | |
| 27 October 2008 | |
| West, saying that one has a large tax practice is like saying that one has a large tumor, but that it's benign. Sure, you won't die from it, but one would prefer to make do without it. No, I think I would prefer to have a large endowment. Errr, come to think if it, that I'd rather leave a large endowment to some educational or other veritbable institution to further the higher aspirations of mankind. Or, to paint a worthy picture, or write a poem that would, in a metaphorical way, wipe the mental tears away from the weary eyes that we use to peer out upon this sordid world.
GG, you can see that it's not an easy question you've posed. Don't worry about confidence lad. As they say in the pole vaulting game: throw your heart over the beam, and your body will follow you through. Get out there and take your swing at the world. There are worse things than striking out. Making it on base is a pain in the ass in itself. Fake it until you make it. That's what Churchill did. Of course, that does not always work (Bush). Anyway, if you can stand this kind of work, there's nothing you can't accomplish. | |
Southparkcpa (talk|edits) said: | 27 October 2008 |
| Crow
I believe West's advice is just about perfect. I have found that the financial planning side of the business takes a special combination of skills. Confidence comes from experience and I am a believer that this business (tax) is FULL of too many practitioners who started with only 2 years experience or they worked for a large company, got a license and now they are CPA's doing tax work etc... full disclosure, I agree with licensing preparers and testing us. If GG works for 2 years in a solid tax/cpa firm that experience will last a lifetime and is much better than learning the hard way. Just another country heard from. | |
| 28 October 2008 | |
| My apologies, I did get carried away. You're looking at the poster boy for learning the hard way right here, and I've got the $25.00 suit of clothes the county gave me to prove it.
GG, you've already shown that you have a high tolerance for pain, and I believe another two years can't hurt. By the same token, you may have gone straight to the business growth community as Natlie suggested, and are rolling out a new office as we speak. I'll stop myself from causing further confusion or enlightenment by quoting a poet who achieved all his life's work before the age of 37, Arthur Rimbaud: "The only unbearable thing is that nothing is unbearable." Well put. P.S. Southpark is exactly correct, you'll never learn anything in a Big 2 firm. That's why there's only two of them. As far as large companies go; according to my stockbroker, as of 4 o'clock this afternoon, there weren't any left. | |
Wkstaxprep (talk|edits) said: | 28 October 2008 |
| One of the great things about working for yourself is that even though you may not initially know an answer to a tax question, when you do find out the answer and understand it, you will very likely always remember how it was done so the next new client that asks the same question you will be well prepared.
somehow, when you work for yourself, the memory improves ten fold :) | |
| 28 October 2008 | |
| GG best of luck to you. I'm assuming that you already have a few tax seasons under your belt. Tax season is not for the weak and an understanding partner/spouse is crucial. The hours are long and grueling but allows me to play the rest of the year. If you've worked in other CPA offices then I'd pay attention to their "system" and use in your own business, i.e. what's the routing system start to finish. Will you have a staff? Will you try and do everything yourself? What software will you use? January is right around the corner for me purchasing a business two months out would not be enough time. I'd like more time to get organized, get familiar with the clients and their returns, but that's just me.
As far as having to look things up, there is far too much information that you cannot retain, so I generally tell my clients "let me research and I'll get back to you". Personally, I don't like having my clients there while I research and find it distracting. Sometimes I research late at night when nobody is around. You gain confidence with time. | |
