Out-of-the-Box idea

Discussion in 'Business Ideas' started by josephr, Jun 22, 2014.

  1. josephr

    josephr
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    Hello. I am new to this forum. I haven't looked through it to see if anyone has asked this question, but I'm pretty confident that no one has. Forgive me, if this idea is not as unique as I am thinking it is.

    I am a senior in an accounting degree program, I have a burgeoning bookkeeping business, and I feel I have a strong grasp on taxation and what it takes to reduce business owner's taxes. I have no desire to get a job after school but my state requires one year of public accounting experience under a licensed CPA to earn my CPA designation. What I am thinking about doing is this. I want to find a small CPA practice, maybe even a one-man show, who will partner with my company. I will bring him new tax clients (my bookkeeping clients) and acquire others specifically for tax work. In exchange, he provides the "CPA oversight" that I need to fulfill my work experience. I wouldn't even ask for salary, just my share of our loot. I'm basically trying to get licensed and recognized for my ability and talent, without having to settle for wages and "employee" status. What do some of you think about this? Is it likely that I can find a CPA willing to do this?

    Thanks!
     
  2. Joseph.Shivell

    Joseph.Shivell
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    It sounds to me like you're trying to game the system, getting licensed without actually fulfilling the requirements for that license. Those requirements are there for a reason. Working under a licensed CPA insures that you actually do have the knowledge and experience needed to give your clients the level of service that the license indicates you can, and the licensed CPA can verify this if necessary. On the other hand, someone willing to partner with you would only be concerned about how much money he can make from the clients you bring him. In a way, you would be paying him to let you bypass the necessary requirements.
    I'm not thrilled with this idea.
     
  3. manmohanbkd

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    I do not think that this idea will last longer and you won't be making it big in the future as well because business is all about retaining your customers and about making money once and let me go somewhere else. In your case definitely they will understand that you are acting as a middle man and they may think that they are being cheated.
    It is better to talk clearly explain to them in a manner that one of your friend can help them and you both friends can share mutually, same as how doctors do?
     
  4. afia_kamran

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    I agree with the above comments that this doesn't sound like a good idea. You are trying to play a game and that game. It's just a matter of one year and you won't even know before it's finished.
     
  5. atlga

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    Its a good idea, but I wouldn't do it with a CPA.

    That is a bit of a joke.

    Seriously though, you would have to make a very lengthy and detailed contract. Good luck enforcing it. Good luck finding anyone that wont try to eat you.
    You would be much better off to go ahead and put your time in. Don't send them any customers. They wont be paying you to do it and you should keep your cards close to your chest. Private message me if you like.
     
  6. josephr

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    Thank you all for your responses. They all seem very sensible.

    I forgot to mention that part of my motivation for coming up with this idea is I've heard (from reliable sources) that when I go to get a public accounting job, most CPA firms are going to make me sign a non-compete agreement and give up my clients. These agreements can be enforceable for up to two years after you leave that particular job. You see how this would stifle my own business plans? I would either have to work there for much more than a year to build up savings so I can wait out the one or two year period before going into business, or I would have to move to private industry for that time as an intermediate step.
     
  7. SConsultant

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    Hello
    having a job as "employee" is not as bad as you think. Usually during the first two-three years the newcomers are learning the important aspects of their business areas.
    A "non-compete agreement" should be specific enough to allow you to start a private business - just think about other companies... I believe, most of their employees / owners were employees somewhere with "non-compete agreement" signed.
    Best,
    Chill
     
  8. SeedsIntoApples

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    Chill is most correct when working for someone isn't as bad as you think. When you don't work as an employee at least once, you are depriving yourself of all that comes with being an employee. You learn so much! I worked in an accounting firm before starting my own business and discovered a lot of things they just don't teach you in the classroom. For instance, firing clients! Instead of looking at trying to not work under someone look at it as the opportunity you need to grow as an individual!

    I wish you the best of luck!
     
    • Like Like x 1
  9. josephr

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    Thanks SeedsIntoApples,

    I can see that being true. There are things I've run into in my bookkeeping business for which it would be nice to know what "best practices" are. Did you start your own accounting firm after working for another or was it a different type of business you started? Also, did the firm you worked for have you sign a non-compete? If so, how you avoid a lawsuit from the company you worked for prior?
     
  10. Business Attorney

    Business Attorney
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    Just because you hear that "most CPA firms" require a non-compete agreement doesn't mean that you can't find an arrangement that works for you, both from the standpoint of "sharing the loot" and being able to set off on your own after you have completed the licensing requirements. Your situation, coming in with your book of business, is unusual and merits being treated differently.

    You are probably correct that to get the type of arrangement that you want you will need to find a very small accounting firm, probably even a single CPA with a couple of staff members. You may also be asked to sign a non-solicitation agreement where you agree that you won't solicit his clients after you leave. That is a fairly common requirement when an accountant with an established book of business joins another firm.

    Nothing you are looking for should really be difficult to arrange if you find the right accountant, but whatever you do, you should spell it out in writing to protect against a dispute when the time comes for you to move on.
     
    #10 Business Attorney, Jul 8, 2014
    Last edited by a moderator: Jan 15, 2015
  11. jay joseph

    jay joseph
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    Joseph,

    I am an Enrolled Agent and work from home for Life Income Tax. We all work from home. Maybe you can find a national outfit that allows you to work part time from home filing forms for clients in other states. They supply the programs and clients, we just file and email back and forth with the client. If you are not an enrolled agent or CPA yet, you will not be allowed to represent, only file.

    Jay
     
  12. AlphaSirius

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    It's a really a good concept of thinking out of the box. Every one's response is very different and we can learn many things from that
     

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