@john c ,
Thank you so much for your response. It's really helpful to read a story of someone who has done this before. I have some questions if you don't mind-
- how in the world did you work in your corporate finance job AND do part time tax work for a firm? I'm not sure if this is something I should be looking at, or if it's even possible for me. I can see how it would be extremely valuable to work a couple tax seasons at a firm.
- How did you find out about the CPA businesses that you purchased. Since we are FI, but my DH is still working this would be a real possibility.
-Can you give me an idea of what kind of pricing for various work I could charge? And how did you figure out what to charge. I've already had some input on this, but more is always better.
-One thing that's been on my mind is what kind of liability insurance I would need. Any thoughts there?
Again, THANK YOU.
To answer your questions:
1) I had a pretty low key job, that allowed me to work from home most times. I easily adjusted my work hours at my regular job. Also, tax firms run 16 hours a day, seven days a week, during tax season. You could EASILY work a couple evenings per week, and one or two weekend days, for a firm. You would probably get $35 to $50 an hour, in my area. I'm in a HCOL area. When I was working part time, I worked evenings and weekends. It's tough with kids, but I was home at least two nights per week, and it's only for 8 weeks. If you're in management with a serious company, this will be hard, just from the demands of your primary job.
2) I worked with CPA practice business brokers in my area. They generally list their practices for sale online, so you can browse them without contacting them. If you want more info, you need to contact them and submit your information, including your ability to actually purchase. I'm happy to fill you in on my experience. I had two good practice purchases, and one that didn't turn out as well as the first.
3) I'm happy to discuss this offline. Generally, use the price structure of the firm you acquire, or just ask new clients how much they're currently paying. They're generally relieved when you'll do it for the same amount of money.
4) I use Camico, which is basically malpractice insurance for CPAs. It's expensive, but I wouldn't go without it. To offset the cost, they provide free CPE, which is nice.
CPA work can be very mustachian. You can have a small practice of 100 returns and make $40-$50k, gross. You'd only work a couple months out of the year. You can easily work this until you're 70 or 75. Plus, I really like my clients, and enjoy working with them.
I think there are a couple of questions you're not asking, like what software to use (Drake, if you're only doing personal returns, or a very few 1120/1120S/1065 returns); also, be wary of new clients; and some others that don't immediately pop into my head.