From Techie to Tax Pro: My Journey to Becoming an Enrolled Agent
(And What I Wish I Knew When I Started!)
Many of us in the tax profession didn’t start here. We began our work lives in a different career but somehow found our way into the tax world. My previous career (in an industry that I still manage to keep a toe in) was pretty much anything related to technology consulting. I got my start in tech as a 14-year-old working for a school district while attending class (well, sometimes). After many years of IT projects, I discovered a new interest: taxation. My grandmother was an Enrolled Agent, so I knew this was the path I wanted to take. I set out to learn as much as I could and become an enrolled agent.
It took me much longer to take the exams than I’d like to admit. I always had an excuse for putting them off. If I am honest, though, the real reason was my fear of failure–I am a perfectionist. I had been out of school for well over a decade, and I hadn’t taken any exams other than a few IT-related certifications (but that material has always been second nature to me). For the SEE (Special Enrollment Exam), I tried various exam preparation services but found them either extremely boring or unsuited to my learning style. Thankfully, I discovered Passkey and passed all three exams on my first attempt. Passkey was actually developed by EAs! I always recommend Passkey (https://passkeyonline.com/) to anyone who wants to become an Enrolled Agent.
With any journey, hindsight is 20/20. Here’s what I wish I had known when I started on my path to becoming an Enrolled Agent.
The Credential “Battle”
I wasn’t planning on mentioning this, but after another useless debate on credentials transpired over the weekend, I thought it was worth discussing. There has always been a level of animosity between some EAs and CPAs. I’ve heard the stories for decades and experienced it firsthand. It is really unfortunate because both licenses are for professionals, and both have their place. From what I have seen, the only people who feel the need to put down another professional are those who feel insecure or want to feel superior. There are good and bad professionals with any set of letters after their name. It is also worth mentioning that there are tax professionals who are quite good but do not have a license. I would always advocate for getting some license, but everyone has a different path.
The License Is The Beginning
Getting your license as an enrolled agent (or CPA) is a necessary step. However, it’s just the beginning. A license means you have satisfied the minimum requirements, but it doesn’t mean you have the knowledge of all things tax related. The tax code is voluminous and grows every year. As an Enrolled Agent or any tax professional, you have to make a conscious effort to stay up-to-date and further your knowledge. Even so, you will never “know it all,” but you will have the necessary knowledge and resources.
Continuing Education and Lifelong Learning
I have had several licensed professionals in various industries tell me that eventually, the novice’s unquenchable thirst for acquiring industry-specific knowledge wears off, and that after a time you will only seek the minimum required education to keep your license in good standing. While I don’t consider myself a novice anymore, I haven’t reached that point yet–and I hope I never do. Even when I take a class on a familiar topic, I always learn something new. Things change quickly in our industry, and it’s essential to be as equipped as possible to make the best decisions for your clients and your business. So don’t be the one who sees continuing education as a dreaded yearly task; instead, embrace the mindset of a lifelong learner. Too often, I see people trying to handle a client matter who do not have experience and want a quick answer. Instead - slow down. Seek out a colleague and work together. You can gain experience and knowledge by doing this. I have always found hands-on experience to be the best kind of experience
Not all Continuing Education is equal
There are many options when it comes to continuing education. When I started out, I tried many different types of courses to see what I liked best. I quickly learned that, like most things in life, you get what you pay for. Some continuing education out there is just plain wrong. (Examples include stating that pots and pans in your short-term rental equate to substantial services or creating an erroneous Schedule C to fix an incorrect 1099 is proper- Both are wrong). If you follow me on social media, you know my favorite company for continuing education is Compass Tax Educators (https://compasstaxeducators.com/). In my opinion, their webinars are the best in the industry. The other way I look for quality continuing education is to search by speaker/educator. After a while in the industry, you realize who you enjoy listening to and who you learn best from. Once you find these educators and industry leaders, follow them on social media and seek out their classes.
Know Your Value
When you are starting off, you need clients, and it is tempting to have low prices. That is one of the worst mistakes you can make. Oftentimes, a client who pays the least will expect the most. I have found this adage to be true many times. Give thought to the value you are providing, and take that into consideration. There is no one single way to do this. Some people charge hourly, others by the form, and some take the value they are providing into consideration. No matter which way you go—know your value!
Know when to Say NO
A dishonest client is the only thing worse than a client who isn’t paying for your value. I once had a client whom I had personally known for a decade and who seemed like an ideal client. I quickly learned, however, that I had to disengage when they would make statements like “I do not want to pay any taxes. My last tax person told me the IRS doesn’t have the resources to check XXXX” or “How will the IRS catch this? Just be creative” or “How will the IRS know?” These are all the signs of a bad client who you should immediately disengage from. That is precisely what I did.
Business is about money
We all want to help people, and we should. But without money coming in, you will not have a business for long. You should always get paid upfront or, at the very least, get a retainer. This is especially important for representation cases. Once you have handled someone's IRS collection problem, they have little incentive to pay you. I take a very transparent approach to billing and pricing: I lay it all out in a proposal in Ignition, and the client pays upfront. If the client needs an hourly service, such as cleaning up their bookkeeping or certain audit engagements, then I collect a retainer.
To Discount or Not
In the past, I have offered discounts, but I now believe that is a mistake. You aren’t doing discounted work, so why should you be paid less? If something is worth doing for less than you would charge, then consider doing it for free. It’s reasonable to do pro bono work when there is a need and when you want to do it. Be selective, and be sure to know you’re doing the service for free before you enter into the engagement.
“Just a Quick Question”
Everyone has a question, and it’s always a “quick one.” It never is. The problems with those quick questions are 1) You likely aren't getting paid, 2) Unless it is a current client, you likely do not know enough about their situation to give a good answer, and 3) If they aren’t engaged, then you shouldn’t be providing services. Many times, and especially during tax season, you will get calls from people asking how much a particular service is or wanting to ask you a question for free.
We handle this by requiring anyone who is interested in becoming our client to book a paid discovery call. This eliminates “tire kickers'' and free questions. The cost of the discovery call is non-refundable, but if they engage us, we do apply it to the engagement. If they do not engage, then I know that we have provided value in our discussion. If it is a referral from a fellow tax professional, then they can book the discovery call without paying. After tax season, I will review this again and will likely change to charging a discovery call fee for all calls and not crediting the fee to the engagement.
Software, Software, and More Software
There is an endless stream of software promising to make our lives easier and more efficient. (Look for my future article about TaxDome). Before you start purchasing software, write down your processes. Without evaluating these, it’s easy to invest a large amount of money for which you may not see a return.
I would be remiss if I didn’t mention security. Always properly vet your software vendor so you know how they handle your data and, more importantly, your client's data! Some software may require that you get a §7216 disclosure signed by your client.
Social media is Not Reality
Social media is a powerful way to connect with colleagues, discuss the topics of the day, and interact with people in the industry. But understand that most people put the best version of themself or their business on display. It can be difficult to determine how transparent and credible someone is, because it’s easy to portray success on social media. Remember–Followers and likes do not equate to clients or dollars in the bank, so when it comes to social media, keep everything in perspective. Think about it - running a tax practice is a lot of work - Can you really spend hours a day on social media and do it effectively?
Final Thoughts
A decade into the industry, I have a lot I’d tell my beginner self, and I’m still learning. What I do know is this: the best advice often comes down to balancing priorities and having a future-forward perspective — do what’s best for your business and yourself. Also, always be willing to be wrong, admit it, and surround yourself with people who know more than you do. I’ve been extremely fortunate to have wonderful mentors and friends who have made this journey far more successful than I ever imagined.