How to Gain Tax Experience as a CPA
As a CPA looking to start a side hustle in Bookkeeping for small businesses, I’m eager to provide comprehensive services that include tax preparation. However, I lack professional tax experience. With seven years of Accounting experience, primarily focused on industry close cycles for a large corporation, I’m seeking guidance on how to acquire the necessary tax skills.
While I appreciate the financial stability of my current position—where I’ve received promotions and earn a solid income—I’m not keen on the idea of taking a $30-50K pay cut to work as a staff tax accountant at a small firm. What alternative routes can I explore to learn about taxes and incorporate this knowledge into my practice?
2 Responses
Congratulations on your CPA designation and on starting your side hustle! Your background in Accounting will definitely serve you well as you expand into tax services. Here are some suggestions to help you gain the necessary experience and knowledge:
Self-Study and Online Courses: There are many online platforms (like Coursera, Udemy, or LinkedIn Learning) that offer tax courses specifically designed for CPAs. Look for courses that focus on small business taxes, tax compliance, and tax planning strategies.
Tax Software Training: Familiarize yourself with popular tax preparation software that many small businesses use (e.g., TurboTax, H&R Block, or more specialized software like Drake or ProConnect). Many of these software platforms offer tutorials and training, which can be invaluable.
Continuing Professional Education (CPE): As a CPA, you’re required to complete CPE credits. Consider taking courses specifically in taxation to enhance your knowledge and keep up with the latest tax laws.
Mentorship: Find a tax professional who has experience in the areas you’re interested in. This could be someone from your network or a local CPA who offers tax services. A mentor can provide guidance, answer questions, and possibly allow you to shadow them during busy tax seasons.
Join Professional Organizations: Organizations like the AICPA (American Institute of CPAs) offer resources, webinars, and networking opportunities that can help you learn from others in the field. They often have resources specifically for CPAs looking to expand into tax.
Tax Preparation Volunteer Work: Consider volunteering for organizations like VITA (Volunteer Income Tax Assistance). This will provide hands-on experience preparing taxes for individuals, which can help you build foundational skills.
Integrate Tax Services Gradually: Start offering tax services for your existing Bookkeeping clients. You could begin with simple tasks like preparing their quarterly estimated tax payments or helping them organize their tax documents. This will give you practical experience without the pressure of handling complicated tax situations right away.
Stay Updated on Tax Law Changes: Tax laws can change frequently, and staying informed is crucial. Subscribe to newsletters, follow tax blogs, and participate in forums to keep your knowledge up to date.
By combining these strategies, you should be able to build your tax knowledge and confidently add tax services to your Bookkeeping practice without needing to take a significant pay cut. Good luck!
It’s great to see your enthusiasm for expanding your skill set and offering more value to your clients! As you transition into tax preparation, there are several alternative routes to gain practical tax experience without sacrificing your current financial stability.
1. **Online Courses and Certifications**: There are numerous reputable online platforms like Coursera, LinkedIn Learning, and the AICPA that offer specialized courses in tax preparation and tax law. Earning a certification, such as the IRS Annual Filing Season Program (AFSP), can also boost your credibility.
2. **Networking with Tax Professionals**: Consider reaching out to established tax professionals in your network. They may offer opportunities for mentorship or even part-time consulting roles. This can provide you with hands-on experience while learning the nuances of tax preparation in a real-world setting.
3. **Volunteer with Community Programs**: Programs like VITA (Volunteer Income Tax Assistance) provide free tax help to those in need. Volunteering can significantly enhance your practical knowledge and expose you to diverse tax scenarios without the pressure of being in a traditional employment setting.
4. **Utilize Software and Simulations**: Familiarize yourself with popular tax preparation software (like TurboTax, Drake, or ProConnect) through trial versions or training sessions. Many of these platforms offer simulations that can help you understand the workflow and calculations involved in tax preparation.
5. **Start Small**: If your current workload permits, consider taking on a few small tax preparation clients on the side. This will not