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do you need your CPA to start your own tax and accounting firm? Bookkeeping business startup

Published on: December 6 2022 by FeedbackWrench

do you need your CPA to start your own tax and accounting firm? Bookkeeping business startup

The above is a brief introduction to do you need your CPA to start your own tax and accounting firm? Bookkeeping business startup.

Let's move on to the first section of do you need your CPA to start your own tax and accounting firm? Bookkeeping business startup!

do you need your CPA to start your own tax and accounting firm? Bookkeeping business startup

startTime durationTime text
00:00:00 00:00:04 hey what's going on everybody um i i got
00:00:02 00:00:04 another video for these accountants if
00:00:04 00:00:06 you're trying to start your own
00:00:04 00:00:08 accounting firm or your own tax firm
00:00:06 00:00:10 your own bookkeeping firm how to start a
00:00:08 00:00:13 bookkeeping business i want to hit on do
00:00:10 00:00:15 you have to be um a cpa do you have to
00:00:13 00:00:16 become an enrolled agent what is it that
00:00:15 00:00:17 you need in fact let me show you
00:00:16 00:00:19 something real quick here
00:00:17 00:00:22 so what you'll see on my youtube channel
00:00:19 00:00:24 which i get 22 222 subscribers that's a
00:00:22 00:00:26 funny number um i get about 320
00:00:24 00:00:28 subscribers every month which is kind of
00:00:26 00:00:31 fun and what you'll see is one of the
00:00:28 00:00:32 number one things i get on my videos out
00:00:31 00:00:34 there in fact my number one video is how
00:00:32 00:00:37 to start a bookkeeping business i get
00:00:34 00:00:38 about 200 views every other day um and
00:00:37 00:00:40 then i've got all these what's the
00:00:38 00:00:42 difference between an llc and
00:00:40 00:00:45 an s corp type of videos but down here i
00:00:42 00:00:47 get all of these um comments that i want
00:00:45 00:00:50 to dive into real quick
00:00:47 00:00:52 and so b-a-t i'm replying to this could
00:00:50 00:00:55 i start my own accounting firm with only
00:00:52 00:00:57 a bachelor's in accountancy
00:00:55 00:00:58 what do you actually need so can you
00:00:57 00:01:01 start your own accounting firm with a
00:00:58 00:01:02 bachelor's in accountancy what do you
00:01:01 00:01:05 actually need in fact if you go through
00:01:02 00:01:08 my my uh comments on my videos here
00:01:05 00:01:11 there's so many questions about how do i
00:01:08 00:01:13 get started what do i need there's
00:01:11 00:01:15 a ton of accounts in there scoffing at
00:01:13 00:01:18 this idea that you could start your own
00:01:15 00:01:19 tax and accounting firm by simply
00:01:18 00:01:21 getting some certifications and doing
00:01:19 00:01:23 some homework but here's another one how
00:01:21 00:01:25 important is a cpa for this type of work
00:01:23 00:01:28 i have worked for two firms and one guy
00:01:25 00:01:30 had a cpa the other one did not the guy
00:01:28 00:01:32 without one had more employees and made
00:01:30 00:01:34 more money the guy without the cpa had
00:01:32 00:01:35 more employees and made more money so
00:01:34 00:01:38 should i worry about getting one or
00:01:35 00:01:40 focus on building my business i have my
00:01:38 00:01:43 accounting degree and i'm already doing
00:01:40 00:01:46 tax prep bookkeeping and payroll thanks
00:01:43 00:01:48 here's what i want to tell you um so i
00:01:46 00:01:49 have an artikle out there that you need
00:01:48 00:01:51 to pay attention to real quick if you
00:01:49 00:01:52 look at how to prepare taxes
00:01:51 00:01:55 professionally i'll put the link in the
00:01:52 00:01:57 description right now but this is on my
00:01:55 00:02:00 blog and what this is is these are the
00:01:57 00:02:02 legal requirements that you have to take
00:02:00 00:02:04 to actually prepare taxes legally and
00:02:02 00:02:06 let's hit on this real quick this is to
00:02:04 00:02:07 prepare taxes okay this is not
00:02:06 00:02:09 accounting this is not bookkeeping this
00:02:07 00:02:12 is not running payroll this is not doing
00:02:09 00:02:13 audits this is none of that um but one
00:02:12 00:02:15 of the things that you have to remember
00:02:13 00:02:17 is that there's two types of
00:02:15 00:02:20 representation that you can make as a
00:02:17 00:02:23 tax preparer and most of the laws out
00:02:20 00:02:25 there like just the legal laws about
00:02:23 00:02:27 what do you have to do to prepare taxes
00:02:25 00:02:30 professionally have to do with these
00:02:27 00:02:31 type of types of representation um and
00:02:30 00:02:33 let me dive into that real quick there
00:02:31 00:02:35 are two types of this tax preparation
00:02:33 00:02:37 representation it's unlimited versus
00:02:35 00:02:38 limited tax representation basically
00:02:37 00:02:40 what you need to know is you have
00:02:38 00:02:42 unlimited representation rights if you
00:02:40 00:02:45 are an enrolled agent or if you are a
00:02:42 00:02:47 cpa those are basically the two where
00:02:45 00:02:50 you can represent people on uh
00:02:47 00:02:51 to the irs okay so as you as you scroll
00:02:50 00:02:53 down on this artikle you're gonna see
00:02:51 00:02:55 that there's two types of tax
00:02:53 00:02:57 preparation representation unlimited
00:02:55 00:02:58 versus limited tax representation and
00:02:57 00:03:00 all you need to know is that you will
00:02:58 00:03:02 need to become a cpa or an enrolled
00:03:00 00:03:06 agent if you intend to basically
00:03:02 00:03:08 represent them to the irs as an audit um
00:03:06 00:03:10 and there's a lot more that goes into
00:03:08 00:03:12 that but just long story short that's
00:03:10 00:03:15 the key so um the other thing that
00:03:12 00:03:18 you'll see is that there's a process to
00:03:15 00:03:21 begin and become an actual cpa or not
00:03:18 00:03:24 cpa firm but a legal entity that's
00:03:21 00:03:25 performing tax returns on behalf of
00:03:24 00:03:27 other people right and there's a process
00:03:25 00:03:28 here that you need to go through the
00:03:27 00:03:30 process is pretty simple so here's the
00:03:28 00:03:32 steps to become a professional tax
00:03:30 00:03:33 provider number one this is more of just
00:03:32 00:03:34 like in line with regular business
00:03:33 00:03:36 business you need to register your
00:03:34 00:03:38 business with the state and obtain an
00:03:36 00:03:40 ein when necessary you have to get an
00:03:38 00:03:42 ein if you're gonna have employees and a
00:03:40 00:03:44 couple other things but basically become
00:03:42 00:03:47 a business number one number two become
00:03:44 00:03:49 an authorized e-file provider by getting
00:03:47 00:03:51 your irs efin electronic filing
00:03:49 00:03:54 identification number um number three
00:03:51 00:03:57 your c get irs tax preparer ptin so you
00:03:54 00:03:59 get a ptin after you get your efin or
00:03:57 00:04:00 your tax identification number then
00:03:59 00:04:02 you're going to check your state's
00:04:00 00:04:03 requirements which i'll dive into here
00:04:02 00:04:05 you'll choose optional training and
00:04:03 00:04:07 certif certifications and then choose
00:04:05 00:04:09 tax preparation software so here's the
00:04:07 00:04:11 thing what i've found is that
00:04:09 00:04:14 there's a big gap between what's legally
00:04:11 00:04:18 required and what you ought to get i
00:04:14 00:04:20 think what most people are stuck in is
00:04:18 00:04:21 most of the people that i tok to fall
00:04:20 00:04:23 into a couple different camps number one
00:04:21 00:04:25 is that they're like a bookkeeper they
00:04:23 00:04:26 know accounting they're comfortable
00:04:25 00:04:27 going into quickbooks and helping a
00:04:26 00:04:29 small business do that but then they get
00:04:27 00:04:32 really scared about taxes right and i
00:04:29 00:04:34 think that you have i really think most
00:04:32 00:04:36 firms should learn how to do the tax
00:04:34 00:04:38 return because it's what you'll find is
00:04:36 00:04:40 it's really not that complicated you
00:04:38 00:04:41 fill out the right forms you have to
00:04:40 00:04:43 know the laws but there's a ton of
00:04:41 00:04:45 resources and practike makes perfect
00:04:43 00:04:46 right and as long as you get in position
00:04:45 00:04:47 to legally do that you're going to be
00:04:46 00:04:49 fine
00:04:47 00:04:50 but then you have the actual competency
00:04:49 00:04:52 things right
00:04:50 00:04:54 and it's just like riding a bike a bike
00:04:52 00:04:56 until you've done it a couple times it
00:04:54 00:04:58 gets really hard to actually file taxes
00:04:56 00:05:00 um so
00:04:58 00:05:01 do you have to have a cpa or do you have
00:05:00 00:05:04 to have a a
00:05:01 00:05:05 an enrolled agent i think it's worth it
00:05:04 00:05:08 sometimes okay there's going to be
00:05:05 00:05:10 certain levels of competencies that you
00:05:08 00:05:11 will want and however it is that you get
00:05:10 00:05:13 that
00:05:11 00:05:16 is most important that's the beauty in
00:05:13 00:05:18 entrepreneurship um as long as you are
00:05:16 00:05:21 abiding by the laws which are not that
00:05:18 00:05:22 high um it's gonna come down to how are
00:05:21 00:05:24 you able to
00:05:22 00:05:27 actually execute you know in business
00:05:24 00:05:29 you have to get sales and you have to
00:05:27 00:05:31 execute you have to set expectations and
00:05:29 00:05:32 take people's money to do something and
00:05:31 00:05:34 solve a problem then on the other side
00:05:32 00:05:36 you have to actually solve that problem
00:05:34 00:05:38 right and what i've found is that there
00:05:36 00:05:39 are a couple different ways that you can
00:05:38 00:05:42 get the skills
00:05:39 00:05:45 to solve the core problems and um it's
00:05:42 00:05:47 worth noting here real quick is that
00:05:45 00:05:49 i've notiked that there
00:05:47 00:05:50 the core problem that most people think
00:05:49 00:05:52 of is that
00:05:50 00:05:53 small businesses need their taxes filed
00:05:52 00:05:55 or they need their bookkeeping done and
00:05:53 00:05:57 that sure that's important
00:05:55 00:05:59 but what i have seen and this is what in
00:05:57 00:06:01 my 500
00:05:59 00:06:03 outsourced accounting trading
00:06:01 00:06:04 class that i have if you go on my
00:06:03 00:06:06 website and you go to accountants and
00:06:04 00:06:08 you go down to online course you can
00:06:06 00:06:10 hear information about my my how to
00:06:08 00:06:12 become an outsourced accountant or how
00:06:10 00:06:15 do you build a super profitable tax firm
00:06:12 00:06:17 i hit on how to really
00:06:15 00:06:19 deliver massive value
00:06:17 00:06:20 while you're doing these core services
00:06:19 00:06:22 so your core services are going to be
00:06:20 00:06:24 tax preparation doing bookkeeping
00:06:22 00:06:26 services running payroll but really what
00:06:24 00:06:29 you're trying to do is you're trying to
00:06:26 00:06:31 do analysis to deliver an amazing value
00:06:29 00:06:33 proposition you want to find a way to
00:06:31 00:06:36 save them tons and taxes you want to
00:06:33 00:06:38 save them gobs of labor and time by
00:06:36 00:06:40 doing the things for them that they
00:06:38 00:06:42 would waste a ton of time you can get
00:06:40 00:06:44 done in 30 minutes what would take most
00:06:42 00:06:46 of us three or four hours in quickbooks
00:06:44 00:06:48 to the payroll solutions right
00:06:46 00:06:49 so i have an artikle here called the
00:06:48 00:06:52 outsourced accountant model and down
00:06:49 00:06:53 here i have this list and i read it off
00:06:52 00:06:54 in one of the previous videos but this
00:06:53 00:06:56 idea is
00:06:54 00:06:58 what i think you should do in terms of a
00:06:56 00:07:01 value proposition
00:06:58 00:07:03 for your clients is in this artikle and
00:07:01 00:07:05 i'm telling you this list of things is
00:07:03 00:07:06 super valuable so the reason why i'm
00:07:05 00:07:08 bringing this up is i think you need to
00:07:06 00:07:11 go through the training and get the
00:07:08 00:07:12 perspective so that you can deliver that
00:07:11 00:07:13 value and what's really interesting i
00:07:12 00:07:16 learned this from the financial planning
00:07:13 00:07:18 world is that you know having the skills
00:07:16 00:07:22 to actually execute a trade or actually
00:07:18 00:07:24 do a tax return it's not that hard right
00:07:22 00:07:27 what's really difficult is how do you
00:07:24 00:07:29 add tremendous value and have a high
00:07:27 00:07:31 level of accuracy when doing it you know
00:07:29 00:07:32 that's the one thing with accounting and
00:07:31 00:07:35 taxes that you
00:07:32 00:07:36 you got to get it right and down here
00:07:35 00:07:37 towards the bottom of this artikle which
00:07:36 00:07:39 is the how to prepare taxes
00:07:37 00:07:42 professionally what you'll see is i've
00:07:39 00:07:43 got a bunch of resources in here that
00:07:42 00:07:46 are other good artikles that i think are
00:07:43 00:07:47 worth reading um here's the steps to
00:07:46 00:07:49 become a tax
00:07:47 00:07:51 professional right and then down towards
00:07:49 00:07:53 the bottom i have these trainings that i
00:07:51 00:07:56 really think you should take a look at
00:07:53 00:07:57 and this is um i'll add before i get to
00:07:56 00:07:59 these trainings there are seven states
00:07:57 00:08:01 with stringent regulations on tax
00:07:59 00:08:03 preparation businesses of course it's
00:08:01 00:08:06 your big liberal ones california
00:08:03 00:08:07 connectikut illinois maryland nevada new
00:08:06 00:08:09 york and oregon right they all think
00:08:07 00:08:10 they need to protect the consumer from
00:08:09 00:08:13 you
00:08:10 00:08:15 um and then as you move down here i have
00:08:13 00:08:17 this six best trainings for beginners
00:08:15 00:08:19 and non-credentialed so if you're not a
00:08:17 00:08:20 cpa or an ea and you're trying to get
00:08:19 00:08:23 some perspective or some training
00:08:20 00:08:26 there's an afsp annual filing season
00:08:23 00:08:27 program by the irs you should do that i
00:08:26 00:08:29 think you should do that every year
00:08:27 00:08:30 basically it's like a little camp an
00:08:29 00:08:32 online thing that you're going to do to
00:08:30 00:08:34 get training from the irs about the most
00:08:32 00:08:36 relevant things number two the income
00:08:34 00:08:37 tax school they have a tax pro program i
00:08:36 00:08:40 would totally look into that jackson
00:08:37 00:08:42 hewitt tax pro training here h r block
00:08:40 00:08:44 tax training
00:08:42 00:08:46 both of these guys these are big firms
00:08:44 00:08:47 across the nation that are trying to
00:08:46 00:08:50 keep good
00:08:47 00:08:52 accountants and good tax preparers in
00:08:50 00:08:53 their system right and you can go in
00:08:52 00:08:55 there and learn and maybe even that's a
00:08:53 00:08:57 good place to learn the business a
00:08:55 00:08:58 little bit and then start your own thing
00:08:57 00:09:01 or whatever that looks like
00:08:58 00:09:02 intuit proconnect you know the software
00:09:01 00:09:04 out there have great training into it
00:09:02 00:09:05 probably has the best they have a
00:09:04 00:09:07 training and resource program and the
00:09:05 00:09:09 liberty tax courses those are some
00:09:07 00:09:12 really good places that you could jump
00:09:09 00:09:14 onto and get some uh get some training
00:09:12 00:09:16 in fact i have a breakdown of each one
00:09:14 00:09:18 of them you know a little bit deeper
00:09:16 00:09:20 there so the question is do you need
00:09:18 00:09:22 your cpa and do you need your enrolled
00:09:20 00:09:24 agent to actually start a business no
00:09:22 00:09:26 you do not you'll need it for certain
00:09:24 00:09:27 things certain states will have some
00:09:26 00:09:29 additional requirements you have to jump
00:09:27 00:09:31 through some hoops
00:09:29 00:09:33 but i know what you're really getting at
00:09:31 00:09:36 is is will i be able to actually land
00:09:33 00:09:37 clients and i think what's really hard
00:09:36 00:09:40 is you're going to go through a stage
00:09:37 00:09:41 where you feel like an imposter and to a
00:09:40 00:09:43 degree you are right which is why if you
00:09:41 00:09:44 go get an internship or go get a job at
00:09:43 00:09:47 an accounting
00:09:44 00:09:50 firm and actually get some reps under
00:09:47 00:09:52 your belt that's your goal right i
00:09:50 00:09:55 started both my businesses by basically
00:09:52 00:09:57 giving away for free or super cheap are
00:09:55 00:10:00 services and now in the accounting
00:09:57 00:10:01 practike i leveraged my friend who had
00:10:00 00:10:03 been at cbiz for seven years we
00:10:01 00:10:05 leveraged his experience to bring
00:10:03 00:10:07 authority forward when we were helping
00:10:05 00:10:08 businesses they could rest assured that
00:10:07 00:10:11 we could do this because he'd been doing
00:10:08 00:10:12 it at a super high level until you get
00:10:11 00:10:14 that
00:10:12 00:10:15 it's going to be a little bit harder to
00:10:14 00:10:16 land clients because you're not credible
00:10:15 00:10:19 yet
00:10:16 00:10:21 credibility is huge and credibility can
00:10:19 00:10:23 certainly come from learning how to do
00:10:21 00:10:25 something you'll get the best feel for
00:10:23 00:10:27 it by actually doing it but any
00:10:25 00:10:28 accountant that says unless you're in
00:10:27 00:10:30 the business for a number of years you
00:10:28 00:10:32 can't do your own thing no bulls not yes
00:10:30 00:10:35 you can if you go and get the right
00:10:32 00:10:37 training and if you go in and you learn
00:10:35 00:10:39 how to deliver value and that's the
00:10:37 00:10:42 funniest thing about this there are a
00:10:39 00:10:43 couple of books that i would read um
00:10:42 00:10:45 that i think are better than any course
00:10:43 00:10:47 you're gonna take in fact
00:10:45 00:10:49 i know this to be true that my old
00:10:47 00:10:51 business partner's
00:10:49 00:10:53 accounting degree and his cpa
00:10:51 00:10:55 designation and his time in cbiz didn't
00:10:53 00:10:57 teach him half the stuff
00:10:55 00:11:00 that sandy botkins how to lower your tax
00:10:57 00:11:02 book did in fact as you dive into these
00:11:00 00:11:05 books you're going to learn all sorts of
00:11:02 00:11:07 super helpful information that show you
00:11:05 00:11:09 practikal steps and practikal threads to
00:11:07 00:11:11 pull on that will actually help you
00:11:09 00:11:12 mitigate their taxes the most most of
00:11:11 00:11:13 the degrees out there that you're going
00:11:12 00:11:15 to get are just going to teach you
00:11:13 00:11:17 compliance stuff so i don't think you
00:11:15 00:11:19 need a cpa i don't think you need an
00:11:17 00:11:20 enrolled agent that being said
00:11:19 00:11:23 you can
00:11:20 00:11:24 you show more credibility it becomes
00:11:23 00:11:27 better for you
00:11:24 00:11:30 if you have them i do think that there's
00:11:27 00:11:32 a level of competency you will gain um
00:11:30 00:11:33 confidence
00:11:32 00:11:35 because when you
00:11:33 00:11:37 feel like you're credible
00:11:35 00:11:38 you will sell better you will lead
00:11:37 00:11:40 better you will lead your clients from
00:11:38 00:11:42 here to there in a better way so it
00:11:40 00:11:45 might be worth doing it but do you need
00:11:42 00:11:45 it no you do

Congratulation! You have finally finished reading do you need your CPA to start your own tax and accounting firm? Bookkeeping business startup and l believe you have enough understanding do you need your CPA to start your own tax and accounting firm? Bookkeeping business startup.

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