How Much Money I Made In 2021 As A First Year CPA Firm Owner

I give a breakdown of how much I made as a first year CPA firm owner.
Follow me on Twitter: / logangraftax

[@robmoffett4840]

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.

[@francismazanet2769]

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.

[@pinacolada896]

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.

[@pinacolada896]

Is their any way I can reach out to you, to ask a few questions?

[@nicholasshook7513]

I’ve been trying to find a video like this for a year now. Awesome!

[@ScottRFrick]

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.

[@MrJfils07]

Lol.. when you said you dont track your time and paused, I really felt that lol... Hate tracking my time...

[@joshuadinero7711]

Commenting for the algorithm, I hope you do the 22 busy season breakdown. Subscribed w notifications

[@taxtelegraf]

Thank you! That's the plan :)

[@hullstone]

Awesome video! Great to hear how other firms are operating and you had a great year!

[@ariellenakia6780]

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!!!

[@IsmmealJorge]

Oh Great! Obviously CPA exam has been a pain in my ass that won't bother me any longer I have gotten my license already thanks to you Mr Dylan God bless you more cuz you made it possible for me

[@robertenriquez8235]

Am sorry for that some people also go through difficulties, just be patient and keep studying

[@pineschijames]

I saw someone say he is not trustworthy i couldn't stop laughing, really people say a lot of shit these days.

[@PerryEmiliano]

He doesn't have a KZbin channel, why is that?

[@jennyms6027]

hello!! This a backdoor we're talking about not some kind of extra classes, you really won't expect him to have youtubeChannel is not safe for him

[@caleb_cpa5778]

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.

[@taxtelegraf]

Thank you! It's doable!

[@nicolecruz7561]

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

[@taxtelegraf]

Thank you, Nicole! Please let me know if you have any questions.

[@manavhir9161]

Hii what are you studying? Are you preparing for CPA?

[@MoetheCPA]

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

[@michaelmeihaus9892]

Really well done. Thanks for sharing Logan! Congrats on the fantastic year.

[@lunamorris2091]

Love the quality of your videos and the value you're providing! Thank you very much for your hard work.

[@taxtelegraf]

Thank you so much!

[@mara_alexander]

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. :)

[@taxtelegraf]

Totally bonkers!

[@frenchpressfinance]

Solid work, video, and everything! Congrats!

[@JJTHECPAusa]

Great video!

[@warmerdm]

Proud of you Logan. Keep on grinding.

[@taxtelegraf]

Thank you, Steve!

[@vladpetskel1384]

This video is very insightful and high quality! Keep it up!!!!

[@tigerlily379]

Great video. Congrats on your first year!

[@angiesowell9532]

Well done!!! Congratulations! Keep up the good work and great ideas!

[@jordanpridemore9618]

Very valuable insight. Thanks for the transparency!

[@JacobBurrescia]

Loved this. Thanks for the insight.

[@trinityscott3498]

Also, congrats on a successful first year!

[@djwhitehead8193]

Awesome info! Thanks for sharing!

[@gosteve1]

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?

[@taxtelegraf]

Thank you! Congratulations on taking the jump! I am thinking about making a similar type of video that you are suggesting!

[@mediccam]

Congratulations on a great start!

[@pearlivory3483]

Huge congrats!

[@user-ny2ym6jm3z]

Thank you for sharing!

[@pjseries1082]

Thanks for sharing Logan 👍

[@musicplaylist5554]

Great info and transparency !!!

[@folorunsodada7771]

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.

[@taxtelegraf]

What you described is the goal! It costs so much because we're worth it 😀

[@throwaway4928]

This...my 1040s average $300...my clients would never pay that much

[@robertgarcia9652]

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.

[@taxtelegraf]

Thank you for the idea!

[@garygooseberry]

Thanks for sharing your numbers!

[@jaimienichols3826]

Thank you so much for sharing 🙏

[@ryanbealscpa]

Great video. 80K in Austin isn't bad at all. You should be really proud of your effort!

[@Financed__]

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

[@francismazanet2769]

Did you pay yourself rent. Find ways to take advantage of QBI

[@karnjitkingh]

Great video!!! Overall great content in general

[@AshS85]

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?

[@taxtelegraf]

Definitely getting hosed but I value the software that I use and think it's worth it! The automation software is called SurePrep

[@nikkapubess3349]

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 KZbin.

[@nikkapubess3349]

@Chad Abercrombie You're taking advantage of folks then, my wife started at $24hr with Elliot Davis.

[@ryanc4199]

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?

[@taxtelegraf]

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.

[@RespectTheConglomerate]

Thanks you so much for sharing

[@20music07]

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!!

[@taxtelegraf]

Practice Ignition! It's actually hidden in some of my software costs...

[@EffortlessBookkeeping]

Agreed on the paid consultation. They respect what they pay for

[@beephex1]

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!

[@taxtelegraf]

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.

[@beephex1]

@@sawgrassdigital5563 great info, thank you!

[@fbi6555]

This is a good video. What a great guy.

[@pearlivory3483]

Yes please make more videos!

[@KavemanLyrics]

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?

[@taxtelegraf]

Thank you! There was no non-compete due to them getting out of the public accounting biz. I purchased those 60 clients from them.

[@MusicKnowte]

wait im so confused did he mean “revenue” when he said “income” ?

[@taxtelegraf]

Revenue and income are the same thing.

[@rizwann123]

Keep up grt work.

[@adamripperdan]

What was the automation software you used?

[@taxtelegraf]

SurePrep!

[@erikrj711]

Great video

[@SheryMalik936]

Congratulations, being a tax preparer you are my role model

[@IIIShizzyIII]

What software helped you automate 1040 returns?

[@taxtelegraf]

I'm going to make a video about this later this year!

[@IIIShizzyIII]

@@taxtelegraf thank you! I'll be waiting. I'm very curious and would love more info.

[@lmorales3470]

Hi, I’ll be hired for an international taxation project in ATX next year. How can I contact you?

[@Brain.00005]

what continuing education expenses did you incur if you already had your Masters of Accounting and your CPA?

[@taxtelegraf]

CPE trainings

[@meskobe]

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.

[@pratippatel1271]

Hi Logan, is buying accounting firm is good option ?

[@taxtelegraf]

It was for me but I had a unique situation.

[@pratippatel1271]

@@taxtelegraf you know Logan there is so tax, audit and bookkeeping is done from India on outsourcing basis.

[@pratippatel1271]

@Chad Abercrombie that’s too low.

[@pratippatel1271]

@Chad Abercrombie it’s not about greed but exploitation is not good.

[@scholarlyanalyst7700]

@@taxtelegraf What sounds harder to your "ears"? 1. Certified Public Accountant or 2. Masters Degree in Statistics?

[@trinityscott3498]

I want the 2022 follow up! Also, what did you pay Sales Taxes on? Being in Texas, I’m curious.

[@taxtelegraf]

I resell QBO subscriptions to some clients so I have to pay sales tax on it 👎

[@trinityscott3498]

@@taxtelegraf that makes sense. 👍🏻

[@9doggie12]

How much did it cost you to buy that book of business and how much of your expenses are deductible?

[@parikoysvlog3510]

Wow it’s really amazing

[@JayFiCPA]

Hey yo only question where you find your clients .

[@taxtelegraf]

They find me!

[@sawgrassdigital5563]

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.

[@cristinahuerta2805]

Hi, I own an accounting and advisory firm in NJ. How can I go about buying clients????

[@taxtelegraf]

Network!

[@cristinahuerta2805]

@@taxtelegraf thank you ! Can you please give me a couple networking strategies?

[@taxtelegraf]

@@cristinahuerta2805 Go out and meet other professionals in your area.

[@jakeadams5741]

The $800 club is a good place to be my friend - it's better up here :)

[@multiNchannel]

How many employees do you have so far?

[@taxtelegraf]

A seasonal admin - that's it!

[@varg1952]

Is there a way to contact u?

[@taxtelegraf]

Twitter @logangraftax

[@bisrow]

Also....this guy is too handsome to be an accountant.

[@taxtelegraf]

I heard he's an industry plant

[@BhaktiSanhita]

Can every CPA earn 100000+dollar income

[@taxtelegraf]

Yes

[@nickolaswolfe2800]

What software do you use?

[@taxtelegraf]

Which one? 😅

[@nickolaswolfe2800]

@@taxtelegraf which tax software?

[@taxtelegraf]

@@nickolaswolfe2800 UltraTax

[@BlitzOfTheReich]

10:38 France does this for law.

[@sneakybeaver6431]

YEE YEE

[@bisrow]

I don't trust an accountant that only uses two monitors. #ThreeMonitorsMan

[@taxtelegraf]

I used to have three. It's because they are so wide.

[@throwaway4928]

$600 for a few w2s?!?! 😂😂😂

[@harland8552]

❣️ ρ尺ｏΜ𝐎ᔕᗰ

[@user-zw3it6zu1q]

Thank you for sharing!