Bookkeeping Only

[nxb11307]

Hello everyone,

My first time on here.

I have been doing taxes and bookkeeping for many years but as I am getting older, I am thinking about doing just bookkeeping.

The tax side of the business is taking up a lot of my time, more risk than the bookkeeping side and the stress level, well, that we all know about. 

Anyone else have this same idea, maybe selling off the tax side of the business and only doing bookkeeping?

 

 

 

[Patrick Michael]

Every April I say this is going to be my last year, I'm getting too old for this.  By time December rolls around I say it wasn't that bad, and do it all over again.  I do have a friend who is just starting on his own who is interested in purchasing my book of business and keeping me on to help out.  I still enjoy the actual prep of the returns, just getting tired with dealing with the IRS, NY state, and clients, so I'm seriously thinking of taking him up on his offer. 

[BulldogTom]

I like the tax prep, and until recently, representation was my favorite part of my practice (hopeful the IRS will start answering the PPL again soon).   There is no satisfaction like getting the client the right result when the IRS is treating them improperly.   I don't do much bookkeeping, but what we do I hand off to my employee spouse.   She enjoys that work more than I do.  

Tom
Longview, TX

[Lee B]

I am the reverse, I enjoy monthly financial statements, processing payroll and business entity tax returns.

Every year I reduce the number of personal tax returns.

[mcb39]

I find it difficult to separate the two.  I actually had a "Bookkeeping Only" client call me last night for advice on how to proceed with elements of her bookkeeping.  Of course, she was over-thinking the whole thing.  I never totally trust the bookkeeping done by a client.  I find too many questionable entries.  Like the others, I really like the tax preparation and the solving of the issues.  Most of our bookkeeping is done in office by my assistants and they are here to ask when there is a question.  If I were to give up one or the other, I think that I would have to give up both because they are so closely interwoven.

[mcbreck]

I'm not a bookkeeper and don't do that stuff - how much do you bill just doing a very limited number of tax returns? About 6 years ago my sister in law was looking into doing bookkeeping and we determined it was 10 hours of bookkeeping to do a rather basic tax return.

[Lee B]

1 hour ago, mcbreck said:

 About 6 years ago my sister in law was looking into doing bookkeeping and we determined it was 10 hours of bookkeeping to do a rather basic tax return.

Then you are way undercharging for your services. I don't compete with part time bookkeepers working out of a home office.

I compete against a few larger non CPA Accounting Firms. My annual fees for my 3 largest clients are in the 5 digits and up.

[Lee B]

About 90 % of my annual income comes from 7 monthly Write up/Payroll/Business Entity Tax Return/Business Owner Tax Return clients.

Five of these clients I have had for over 25 years.

Including these clients I did less than 40 total tax returns last year.

It's a very viable practice niche with less hours and a lot less stress.

[Sara EA]

On 10/14/2022 at 10:53 AM, mcb39 said:

I never totally trust the bookkeeping done by a client.  I find too many questionable entries.

Like every time they stop at a fast food joint for lunch or a package store classified as "meals and entertainment"?  I prefer the clients who classify half their entries as "ask accountant."  My least favorite are those  who don't have separate business debit/credit cards and just give you their bank statements.  Everything is in there--groceries, gas, shoes, dating services, and of course cell phone payments for the entire family.  Bookkeeping can take a LOT of time, but if you can charge enough for it, go for it.  The answers are more black and white than positions on a tax return--if you can get the details from the client.

[mcb39]

Fortunately, I have one gal who loves digging through the papers and sorting out the expenses.  She comes in when I need her and does an awesome job.  Believe me, she looks at everything and questions that lunch at McDonalds or that bottle of Bourbon and isn't afraid to call the client on it.  When she is ready, she calls them in and puts them on the "hot seat" and ties up all the loose ends.  When she is finished, all I have is totals.  At the same time; she is doing a great job of whipping them into shape.  She isn't interested in tax prep, but loves the numbers and loves coming here just to be a part of the "fun"!  One client has 9 rentals and tries to bring in reports that are a mish mash of a mix up.  He knows that when Gen wants to talk to him, he had better have his answers ready.