Starting Out

[RNuse09]

Is there any advice someone could give a new tax preparer preparing for their first season on their own. I graduated with a degree in accounting and have just passed the see exam. I am particulary nervous in doing payroll, only because I don't have that much experience with payroll. Thanks

[BOB W]

Is there any advice someone could give a new tax preparer preparing for their first season on their own. I graduated with a degree in accounting and have just passed the see exam. I am particulary nervous in doing payroll, only because I don't have that much experience with payroll. Thanks

Welcome abroad and welcome to this fantastic field of endeavor. There are many posts on this board if you have the time to search it out relating to payroll. The Tax Book probably has info in the business section. You can also do a Google search "Payroll" and find more than you care to read.

Chapter 23 covers payroll of the business unit

[Lion]

Payroll

If you have enough business without doing payroll, you can turn down that type of work. Or refer clients needing payroll to a payroll only vendor for that need while you file their other tax returns. Or develop a relationship with another firm in your area to each work in your areas of expertise and refer to each other. Or, work under a mentor for payroll until you feel more comfortable.

Develop a different niche entirely.

[Mike Mac]

Over the years many new people have asked a similar question on this board. Some of the advice that I recall being common on most of those threads:
--Take your time when you 1st start Don't take on more clients than you feel comfortable with in the beginning. If you are good, your business will grow without tons of effort just through referrals.
--Have someone available to check you input.
--Don't undervalue the product you are selling.
--Gradually increase the complexity of the returns you handle.

Mike Mac

[Kram BergGold]

Farm it out

Find a payroll company and do everything through them.

[erchess]

As usual,

I agree with Kram. You can easily farm out your payroll but you want to be the one stop for tax purposes that a client makes or you will fairly quickly lose the client to someone who is willing to be their one stop.

I also agree with whoever it was said to get a mentor. Mine have been and are immensely helpful and even though I have been an EA since '97 I still have several.

[oceanlovin'ea]

local EA's

Since you passed the EA exam, you are now an enrolled agent.
I joined NAEA and the state organization. Most states have chapters. We have a small chapter here but you will meet other enrolled agents who are always willing to help new EA's starting out.
Through our state organization, I have met some people who have so much experience and knowledge. I have found them very willing to share.
Don't view them as your competition, but as your colleagues and support.

What state are you in?

Linda

[Snaggletooth]

Welcome

This message board is a good source of help from seasoned people with "real world" experience. All of us have once been where you are, starting with only a few clients. And the sponsor of this board, The Tax Book, provides you with a reference source written by actual practicing tax preparers -- all of the writers have tax practices of their own, and this gives the publication a unique perspective. Most publications prohibit their writers from preparing any returns.

In my case, I had other income in the off-season to supplement what I made in my tax practice (and this is still the case but to a lesser extent, but it is all accounting-related). This will give you time to grow your practice in the right way, and not seek for explosive growth, which won't happen if you are really good.

Do not rely on advertising. Newspapers and yellow pages will bring you more calls from the chamber-of-commerce and local charities than it will customers. People rely on very trusted sources when it comes to things that are extremely personal.

Give concerned and confidential service. Never tell someone's financial or tax status to some other party, even family members. NEVER, and I can't emphasize the word enough. Go the extra mile with service, even if you find out some of it is without compensation. Look out FIRST for your clients, and the money will eventually take care of itself.

And don't forget us here on the board. Many of us know each other (in fact I know people personally on this board from several different states), and we really do try to help each other because we understand the problems of tax preparation better than any other group with whom you can consult. You will receive valuable and timely advice, and very shortly you will find that you are helping others as well as being helped yourself.

You don't have to, but many times it helps if we know your resident state. There are many state issues and regional issues that can often be taken into account. No one wants your home address or to invade your privacy -- but your location CAN be important.

Good luck to you -- we are excited about newcomers to the profession, many of us being old curmudgeons anxious to pass our experience along.

[RNuse09]

Thank you

I wanted to thank everyone for all of the posts. I sent in the form and the test results about a week ago. I have heard though that it takes them a couple months to do the background check to finally become in enrolled agent. I also just passed the Quick books certification course as well. Can anyone tell me if they send you a diploma that you can hang on the wall for becoming in enrolled agent. I am located near Reading, PA.

[Lion]

Yes

Yes. I have my Certificate of Enrollment framed and on my office wall.

[Lion]

Ps

Start by looking for individual clients and small businesses with no employees. As your clients grow and start hiring employees, you'll feel more comfortable doing payroll or have a system in place to service your clients for payroll. Don't try to do everything right now.

[BOB W]

Start by looking for individual clients and small businesses with no employees. As your clients grow and start hiring employees, you'll feel more comfortable doing payroll or have a system in place to service your clients for payroll. Don't try to do everything right now.

I, on the other hand, feel that a starting practioner has a lot of TIME on his hands. This leaves new practice issues available for research with a clear functional approach to getting the current job done.

So when it comes to payroll clients, take them on. If you know it is one of your short comings, dig in. Get a copy of Circular E for starters. Get a copy of the Business Unit of The Tax book. As a matter of fact, you should have all The Tax Books main books and maybe some of the special offerings.

I remember, way back, for every billing hour I probably spent 5 hours of reading. Much of those 5 hours was general reading.

Get a copy of Circular E for starters.

[Whitney38]

I am what you might call a lurker. I read this forum frequently but as you can see I seldom post. Much valuable information has been gleened from others. Good luck and stay positive.with your endeavors.

[BOB W]

Here is Circular E: It has just about everything you need to know about payroll and payroll reporting.

http://www.irs.gov/pub/irs-pdf/p15.pdf

[sea-tax]

My Advice sorry if anyone already said this but...

Figure what your starting capital should be and then triple that number everything else as they say is gravy. You would be surprised how many new businesses fail one month shy of making it becuase the capital runs dry.

Good Luck!