Thank You for sharing your numbers. I can only imagine the confidence and guidance that this video may provide to other CPAs that are dreaming of opening their own firm.
Self employed CPA. I make a little less than $500K a year. My minimum annual fee is $15K per client. I have one client who pays me $60K, another $30K. I only do books for businesses making over $2 million a year in sales. I do not do personal tax returns unless they are the business owners of the companies I am the CPA. I am not unique. I developed a strategy of seeking higher paying clients and then letting go of lower paying clients as I go along. I work about 70 hrs a month. My success, and yours, is be based on recognizing who has the bucks, not businesses making less than $1 million and certainly not regular personal tax returns. My time is valuable. If I am not making between $400-$700 an hours, I am not interested. Now, you may not be able to start with that mindset, but it should be your goal. Remember: Don't do work for people who complain about money; always look to find wealthier clients and let go of the poorer clients as you go along to free up your time to service wealthier clients. It may take 5 years, but if you stick with that philosophy, you too can make almost $500K a year as a CPA. One last thing: I DO NOT charge per hour. I charge on a fix fee. You will find as you go along, the more you knew the client's books, the less time you take. Hence the fixed fee gives me more money per hour as I get faster on doing the client's books. And I always raise my fees 10% minimum each year on existing clients. If you build trust and your client feels they cannot live w/o you, you can raise your rates 10%+ per year. One client I charge an extra $1,000 a month for every new store they open. Be creative with how you make money from your fees.
Thank you for sharing your story, I hope to be at your level one day, I am in Grade 12 now, will be taking Accounting in University and plan on opening my own firm in the future.
Logan, congratulations on your first year and I found that your statements regarding your "take home" now vs. as an employee should serve as a motivator to anyone thinking of opening a new firm. My experience was similar and I've never looked back.
Can’t wait to see your 2022 video like this one. I want to open my own firm. Also can you do a office video of your gear specifically the sit stand desk which I am obsessed to get but not sure which brand
Thank you so much for this video Logan! You did AMAZING your first year! I'd love to see more videos, especially the 2022 season, since now I'm curious how bonkers it was. :)
Thank you si much for this video. I’m so glad to find someone that does a breakdown of how their business is going as it’s really helpful for reference. I’m an accounting student so this really gives me a little direction of future opportunities. I hope your business keeps growing
great video, thank you for sharing. I will be taking the leap and starting my own firm soon and this is inspiring. Can you do a video going over all of the software and programs you use to manage your practice?
This was a great video and inspires me. I’m also thinking of starting my own firm…or buying one. Do you mind sharing how you located a contractor to help with some of the tax return prep?
Thank you, Ryan! The contractor that works with me used to be a coworker who I had a good relationship with! It's kind of a once in a lifetime situation, I feel like with everything the way it is these days.
Pretty good first year dude, mine was about the same, started in 2020. I think you're getting a little hosed on the tax software, also curious to know more about this 1040 automation software?
Hey Logan, thanks for the informative video! Was there no non-compete clause at your previous firm? They didn't take issue with you taking on 60 of their former clients?
Great presentation.Just wondering why it costs so much to prep personal tax returns in the states.We charge pretty lower than that for personal in Canada.Complicated personal returns charges start at say $300 depending on time spent but basic personal still go for $CAD100.Love the breakdown of income and expenses and would suggest that you leverage accounting services that would cover accounting/bookkeeping, payroll, advisory, tax prep/filing and transaction taxes for businesses in exchange for a monthly revenue pull from those client base.Imagine 100 business clients each paying monthly fee of $500 each in exchange for listed services?Congrats on starting and all the very best.
Thank you for the info, I'm new to the channel and the video was great. I am going into my 4th busy season and just received my CPA. My tax return work has been similar to what you mention and I feel like I still have a ton to learn on low level taxes alone. I'm just starting to consider what it would require to be self employed and am trying to identify some of the specific nuts and bolts needed to get started. For example, do you keep your practice in an S-corp and pay out a salary and distributive share? Does your software charge on a per return basis? Is it a suite package which offers an upload module for clients as well as file management, tax software, etc. Do you use digital marketing to bring in new clients? Any specifics to your insurance policy that you find important? These are mainly content ideas, not asking for a reply on all. I will also subscribe and follow. Thanks again!
Omg I applaud you for your transparency! Congratulations on knocking it out the park with your goal and your take home percentage. I’m curious about how you accept payments. Less than a tenth of a percent of your revenue seems great!!
I think a video outlining what it takes to start a cpa firm would be helpful and provide great value. I notice you don’t pay rent expense so you may be wfh ? Computers, equipment , softwares needed etc I would personally watch a dozen times.
CPA licenses, like most professional certifications, require continuing education to maintain/keep your license. In fact, the requirements for CPAs are far higher than any other profession, including doctors and lawyers! Generally 40 hours required per year.
It depends on what kind of clients you want. Then you go where they are. Businesses are on LinkedIn. Individuas are on Facebook and Instagram. You not only post valuable content but reach out to potential clients as well. Think about what they want rather than the service you offer. No one wants a tax plan, they want to save money on their taxes. Then you do this over and over and over. Make sure you have an okay website and Google My Business listing.
Love this video! Currently in grad school for my Masters in Taxation and plan to sit for the CPA shortly after I graduate. My dream is to open my own firm🥹 This was so insightful and thank you!!!
I make $85k as an employee. My responsibilities- Meet 90 clients in person or zoom Prepare approx 200 1040s 18 S and C Corp 20 Partnership 15 trust and estate 15 bookkeeping using QBO
Thank You for sharing your numbers. I can only imagine the confidence and guidance that this video may provide to other CPAs that are dreaming of opening their own firm.
Self employed CPA. I make a little less than $500K a year. My minimum annual fee is $15K per client. I have one client who pays me $60K, another $30K. I only do books for businesses making over $2 million a year in sales. I do not do personal tax returns unless they are the business owners of the companies I am the CPA. I am not unique. I developed a strategy of seeking higher paying clients and then letting go of lower paying clients as I go along. I work about 70 hrs a month. My success, and yours, is be based on recognizing who has the bucks, not businesses making less than $1 million and certainly not regular personal tax returns. My time is valuable. If I am not making between $400-$700 an hours, I am not interested. Now, you may not be able to start with that mindset, but it should be your goal. Remember: Don't do work for people who complain about money; always look to find wealthier clients and let go of the poorer clients as you go along to free up your time to service wealthier clients. It may take 5 years, but if you stick with that philosophy, you too can make almost $500K a year as a CPA. One last thing: I DO NOT charge per hour. I charge on a fix fee. You will find as you go along, the more you knew the client's books, the less time you take. Hence the fixed fee gives me more money per hour as I get faster on doing the client's books. And I always raise my fees 10% minimum each year on existing clients. If you build trust and your client feels they cannot live w/o you, you can raise your rates 10%+ per year. One client I charge an extra $1,000 a month for every new store they open. Be creative with how you make money from your fees.
Thank you for sharing your story, I hope to be at your level one day, I am in Grade 12 now, will be taking Accounting in University and plan on opening my own firm in the future.
Is their any way I can reach out to you, to ask a few questions?
Really well done. Thanks for sharing Logan! Congrats on the fantastic year.
Awesome video! Great to hear how other firms are operating and you had a great year!
I’ve been trying to find a video like this for a year now. Awesome!
Solid work, video, and everything! Congrats!
Logan, congratulations on your first year and I found that your statements regarding your "take home" now vs. as an employee should serve as a motivator to anyone thinking of opening a new firm. My experience was similar and I've never looked back.
Loved this. Thanks for the insight.
Great video. Congrats on your first year!
Awesome info! Thanks for sharing!
Very valuable insight. Thanks for the transparency!
Well done!!! Congratulations! Keep up the good work and great ideas!
Can’t wait to see your 2022 video like this one. I want to open my own firm. Also can you do a office video of your gear specifically the sit stand desk which I am obsessed to get but not sure which brand
Great video! Glad your first year solo was a success. I'm a recent CPA and thinking this may be my goal after a few more years of experience.
Thank you! It's doable!
Commenting for the algorithm, I hope you do the 22 busy season breakdown. Subscribed w notifications
Thank you! That's the plan :)
This video is very insightful and high quality! Keep it up!!!!
Love the quality of your videos and the value you're providing! Thank you very much for your hard work.
Thank you so much!
Huge congrats!
Great info and transparency !!!
Congratulations on a great start!
Thanks for sharing Logan 👍
Also, congrats on a successful first year!
Proud of you Logan. Keep on grinding.
Thank you, Steve!
Thank you for sharing!
Thank you so much for this video Logan! You did AMAZING your first year! I'd love to see more videos, especially the 2022 season, since now I'm curious how bonkers it was. :)
Totally bonkers!
Great video!!! Overall great content in general
Thank you so much for sharing 🙏
Great video!
Thanks for sharing your numbers!
Thank you si much for this video. I’m so glad to find someone that does a breakdown of how their business is going as it’s really helpful for reference. I’m an accounting student so this really gives me a little direction of future opportunities. I hope your business keeps growing
Thank you, Nicole! Please let me know if you have any questions.
Hii what are you studying? Are you preparing for CPA?
great video, thank you for sharing. I will be taking the leap and starting my own firm soon and this is inspiring.
Can you do a video going over all of the software and programs you use to manage your practice?
Thank you! Congratulations on taking the jump!
I am thinking about making a similar type of video that you are suggesting!
Lol.. when you said you dont track your time and paused, I really felt that lol... Hate tracking my time...
Thanks you so much for sharing
Great video. 80K in Austin isn't bad at all. You should be really proud of your effort!
This was a great video and inspires me. I’m also thinking of starting my own firm…or buying one. Do you mind sharing how you located a contractor to help with some of the tax return prep?
Thank you, Ryan!
The contractor that works with me used to be a coworker who I had a good relationship with!
It's kind of a once in a lifetime situation, I feel like with everything the way it is these days.
Pretty good first year dude, mine was about the same, started in 2020. I think you're getting a little hosed on the tax software, also curious to know more about this 1040 automation software?
Definitely getting hosed but I value the software that I use and think it's worth it! The automation software is called SurePrep
Hey Logan, thanks for the informative video! Was there no non-compete clause at your previous firm? They didn't take issue with you taking on 60 of their former clients?
Thank you! There was no non-compete due to them getting out of the public accounting biz. I purchased those 60 clients from them.
Keep up grt work.
This is a good video. What a great guy.
Great presentation.Just wondering why it costs so much to prep personal tax returns in the states.We charge pretty lower than that for personal in Canada.Complicated personal returns charges start at say $300 depending on time spent but basic personal still go for $CAD100.Love the breakdown of income and expenses and would suggest that you leverage accounting services that would cover accounting/bookkeeping, payroll, advisory, tax prep/filing and transaction taxes for businesses in exchange for a monthly revenue pull from those client base.Imagine 100 business clients each paying monthly fee of $500 each in exchange for listed services?Congrats on starting and all the very best.
What you described is the goal!
It costs so much because we're worth it 😀
This...my 1040s average $300...my clients would never pay that much
Yes please make more videos!
Thank you for the info, I'm new to the channel and the video was great. I am going into my 4th busy season and just received my CPA. My tax return work has been similar to what you mention and I feel like I still have a ton to learn on low level taxes alone. I'm just starting to consider what it would require to be self employed and am trying to identify some of the specific nuts and bolts needed to get started. For example, do you keep your practice in an S-corp and pay out a salary and distributive share? Does your software charge on a per return basis? Is it a suite package which offers an upload module for clients as well as file management, tax software, etc. Do you use digital marketing to bring in new clients? Any specifics to your insurance policy that you find important? These are mainly content ideas, not asking for a reply on all. I will also subscribe and follow. Thanks again!
Thank you for the content ideas and the feedback! I would love to make a video about my operations that would answer a lot of your questions.
@@sawgrassdigital5563 great info, thank you!
Great video
Omg I applaud you for your transparency! Congratulations on knocking it out the park with your goal and your take home percentage.
I’m curious about how you accept payments. Less than a tenth of a percent of your revenue seems great!!
Practice Ignition! It's actually hidden in some of my software costs...
I want the 2022 follow up! Also, what did you pay Sales Taxes on? Being in Texas, I’m curious.
I resell QBO subscriptions to some clients so I have to pay sales tax on it 👎
@@taxtelegraf that makes sense. 👍🏻
Thanks for the video, my wife just got a job with Elliott Davis a CPA firm, so I'm just looking for CPA videos on RUclips.
@Chad Abercrombie You're taking advantage of folks then, my wife started at $24hr with Elliot Davis.
I think a video outlining what it takes to start a cpa firm would be helpful and provide great value. I notice you don’t pay rent expense so you may be wfh ? Computers, equipment , softwares needed etc I would personally watch a dozen times.
Thank you for the idea!
Did you pay yourself rent. Find ways to take advantage of QBI
Wow it’s really amazing
Agreed on the paid consultation. They respect what they pay for
What was the automation software you used?
SurePrep!
Hi, I’ll be hired for an international taxation project in ATX next year. How can I contact you?
what continuing education expenses did you incur if you already had your Masters of Accounting and your CPA?
CPE trainings
CPA licenses, like most professional certifications, require continuing education to maintain/keep your license. In fact, the requirements for CPAs are far higher than any other profession, including doctors and lawyers! Generally 40 hours required per year.
What software helped you automate 1040 returns?
I'm going to make a video about this later this year!
@@taxtelegraf thank you! I'll be waiting. I'm very curious and would love more info.
Hey yo only question where you find your clients .
They find me!
It depends on what kind of clients you want. Then you go where they are. Businesses are on LinkedIn. Individuas are on Facebook and Instagram. You not only post valuable content but reach out to potential clients as well.
Think about what they want rather than the service you offer. No one wants a tax plan, they want to save money on their taxes. Then you do this over and over and over.
Make sure you have an okay website and Google My Business listing.
Congratulations, being a tax preparer you are my role model
YEE YEE
Hi Logan, is buying accounting firm is good option ?
It was for me but I had a unique situation.
@@taxtelegraf you know Logan there is so tax, audit and bookkeeping is done from India on outsourcing basis.
@Chad Abercrombie that’s too low.
@Chad Abercrombie it’s not about greed but exploitation is not good.
@@taxtelegraf What sounds harder to your "ears"? 1. Certified Public Accountant or 2. Masters Degree in Statistics?
The $800 club is a good place to be my friend - it's better up here :)
Hi, I own an accounting and advisory firm in NJ. How can I go about buying clients????
Network!
@@taxtelegraf thank you ! Can you please give me a couple networking strategies?
@@cristinahuerta2805 Go out and meet other professionals in your area.
Love this video! Currently in grad school for my Masters in Taxation and plan to sit for the CPA shortly after I graduate. My dream is to open my own firm🥹 This was so insightful and thank you!!!
wait im so confused did he mean “revenue” when he said “income” ?
Revenue and income are the same thing.
How many employees do you have so far?
A seasonal admin - that's it!
What software do you use?
Which one? 😅
@@taxtelegraf which tax software?
@@nickolaswolfe2800 UltraTax
How much did it cost you to buy that book of business and how much of your expenses are deductible?
Is there a way to contact u?
Twitter @logangraftax
I make $85k as an employee.
My responsibilities-
Meet 90 clients in person or zoom
Prepare approx
200 1040s
18 S and C Corp
20 Partnership
15 trust and estate
15 bookkeeping using QBO
10:38 France does this for law.
Also....this guy is too handsome to be an accountant.
I heard he's an industry plant
Can every CPA earn 100000+dollar income
Yes
I don't trust an accountant that only uses two monitors. #ThreeMonitorsMan
I used to have three. It's because they are so wide.
$600 for a few w2s?!?! 😂😂😂
❣️ ρ尺ｏΜ𝐎ᔕᗰ
Thank you for sharing!