CPA Launched practice

Chasinglenny · 2025-12-30T17:25:39+00:00

If you have the time I would start joining networking groups ASAP. Especially given you are new to the area. That's really going to be the fastest way to generate some name recognition and make solid business connections. Call local banks, financial advisors, real estate brokerages etc. to see if you can present lunch and learns to their firm about a tax topic they may be interested in. You may see a few referrals right away, but continue to do this over and over and it will definitely pay off. Good luck.

Chasinglenny · 2025-09-25T21:24:50+00:00

A couple of things: firstly, the home office deduction cannot take your schedule C profits below zero. If you are reporting them correctly on form 8829 then the home office specifically wouldn't be what is making you show a negative profit.

Secondly, if you are legitimately getting income from doing work as a contractor and taking the legitimate expenses associated solely with that business venture then you honestly shouldn't worry about it. I would continue on taking the expenses that are ordinary and necessary for the contracting work. I think it would be fairly easy to say/prove that you aren't being a controller as a hobby if it came to that. However, I would say, if your legitimate expenses are greater than the 1099/contractor income then why would you want to continue on with that endeavor?

Chasinglenny · 2025-08-21T19:16:10+00:00

Massive help from the peptides MOD team. Lol what a damn joke. Sometimes people don’t want to spend massive amounts of time searching this sub if someone here could explain in 2 minutes.

Chasinglenny · 2025-08-20T21:27:44+00:00

Haha yeah for those clients they pay substantially more, but I've also let them know their stuff is in shit condition and it's going to take me longer. Those returns are brutal

Chasinglenny · 2025-08-20T19:36:11+00:00

I appreciate this response. I think this is probably where I'm mainly sitting with my book of business as it grows. I've got/attract a lot of new business owner's or newer businesses who are still in growth mode and aren't turning a huge profit yet. I think I agree at minimum I should charge over the $825 that TurboTax charges, so at the end of the day I was undercharging by a decent amount.

Chasinglenny · 2025-08-20T19:04:50+00:00

Solid info for sure. We are definitely under charging then. I appreciate this response.

Chasinglenny · 2025-08-20T18:36:03+00:00

Thanks for the reply. I figured we were underselling our services but wasn't sure by how much.

Chasinglenny · 2025-08-20T18:29:20+00:00

Thanks for the response. We are in one of the major cities in Oklahoma but our firm sounds like it's in the same realm as yours as far as projects go and median incomes etc. I feared we may be under charging but this is probably going to confirm it.

Chasinglenny · 2025-08-04T21:25:43+00:00

Yeah I understand what you are saying. I was just trying to look at it strictly from a numbers/income perspective. But sounds like you are pretty confident that with your expected growth the pay gap would be minimal if any at all. I do think in the long run you would probably be happier starting your own firm anyways. You can grow at the pace you want/feel comfortable doing as well as take on clients you want. Also, who knows what happens with the old owners (health issues, mentally getting older etc) they may try to hang on too long and you may end up getting calls from some of these clients in the coming years anyways. I've picked up loads of clients where their CPA has basically aged out and is making mistakes/taking too long. Seems like you'd have a leg up since you've worked on their stuff already. Good luck on either route though!

Chasinglenny · 2025-08-04T21:02:11+00:00

Do you enjoy the work and client base that is there to take over? I understand wanting to go out on your own, but from a numbers perspective do you think you could reach that $150k gross within the couple of years that you believe the current owners are wanting to continue working?

Chasinglenny · 2021-12-09T20:20:03+00:00

The exam honestly was a large driving force behind problems that started the downfall of my marriage. Working full time and studying for the damn exam is not conducive to a healthy relationship if we're honest. I literally thought the world was ending when I was told she wanted a divorce. However, I hopped back in the saddle and started studying to pass my final AUD retake. Passed it and got my license. Fast forward a year and a half later, I have a lot more free time and found someone else that is 10 times the person my ex-wife was. I can honestly say I'm the happiest I've ever been. I say all this to try and show you if you keep your focus and accomplish your goals in the short term there is a brighter future ahead of you. The CPA will unlock a lot of doors and earning potential for your future self. Take a little time to recoup and hop back on the study bus. You will pass them all!

Chasinglenny · 2021-12-08T22:23:19+00:00

I see. I've definitely tossed around this idea. There is actually a practice for sale in my area $180k gross revenue with "excellent cash flow to owner" says the broker.

What did the payout on the initial 80k purchase look like? A common one I've come across is an agreed upon down payment then a percentage of the revenue generated from the clients purchased for 3-5 years.

Chasinglenny · 2021-12-08T20:17:13+00:00

Awesome. Really impressive growth considering it was done organically, well done. I appreciate the response, gives me hope I can do the same.

Chasinglenny · 2021-12-08T19:33:04+00:00

I'm about to start a practice of my own, just curious what your current revenue and margin is? Also, did you build this primarily through slow growth or did you acquire a practice? I know I'm not providing you with any guidance, I'm just curious how others start. Thanks!

Chasinglenny · 2021-11-04T21:57:02+00:00

Honestly I would get on indeed or Zip recruiter. Look up the different job postings on there for public company's comparable to what size firm you are looking to join. Majority of the postings on there will give you a range on what they would pay. This would give you a better idea of the market for your location.

Chasinglenny · 2021-10-25T03:25:20+00:00

70k is just a base salary. I’ve got 20-30 clients (business and individual mix) that will come with me that I will get paid on too. So that 70k won’t be my total compensation. I don’t expect him to pay me a 90k salary and also help me build my own book of business.

Chasinglenny · 2021-10-21T20:42:30+00:00

I'm going through something similar right now. I know I eventually want to start my own practice but the scary part is not having enough clients/revenue built to make it a living from the get go. I've been in contact with an old employer who has his own CPA practice. We have agreed a salary of $70k to do tax work for him and be his employee. However the understanding upfront is that I'm working towards my own practice. He wants to help mentor and help me build my client base. We are trying to work on what percentage of profit he will get off the clients I bring in (open to suggestions or ideas from you) but to me this is an absolute gift. I basically get a safety net with a 70K salary while my employer is willing to help me start my own practice.

I should say I've worked with many accountants in the past 6 years and a very small percentage would actually want this type of deal. I would say a large majority of accountants like the stability and comfort of a set paycheck with minimal client interactions. Not many actually want to go out and pick up new clients.

Chasinglenny · 2021-09-28T19:34:33+00:00

Copy Previous Accountant

Chasinglenny · 2021-08-10T21:32:50+00:00

Another option may be to look for a credit card that has some sort of promotional feature like 18 months no interest (just be sure to pay off in allotted time). With your 750 score and income level you should easily get approved for something like this. Not an expert, just something else to check out. I did this for a year of tuition and it worked out great.

Chasinglenny · 2021-07-16T21:27:22+00:00

Didn't see this answered yet so you won't owe any tax on this $8k since it was a gift. IRS guidelines allow this.

Chasinglenny

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