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
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Table of Contents About 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
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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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