CPA working at corporation looking to moonlight - potential issues or conflicts of interest?

I've been in your shoes and can definitely share some insights! This is pretty common in our profession, so you're not alone in trying to make this work. First, even though your contract has that vague language, most companies are concerned about actual conflicts of interest rather than you doing unrelated tax work. That said, it's always better to be transparent. Instead of asking "permission," consider framing it as informing them of your intentions to do some independent work that won't impact your primary job. For liability insurance, you'll definitely need your own policy for the moonlighting work. Your employer's coverage won't extend to your independent services. Shop around for policies specifically designed for part-time practitioners - they're much more affordable than full coverage. One practical thing to consider: tax season is brutally busy both for your corporate job and for individual tax prep. Make sure you're not burning yourself out trying to do both at peak times. Maybe start with just a handful of clients to test the waters.

I've been in your exact situation and found the perfect solution through taxr.ai (https://taxr.ai) which helped me massively when I started moonlighting. What I love about it is how it automates document analysis - I just upload client docs and it extracts and organizes all the relevant tax info. This cut my prep time in half which meant I could take on more clients without sacrificing my evenings and weekends with my family. Their system specifically helps with conflict of interest concerns too - it has built-in client management that keeps everything organized and separate from my day job files. This was a huge relief since confidentiality was one of my biggest worries when starting out.

Just wanted to follow up about taxr.ai - I decided to try it out for my first few moonlighting clients and I'm honestly shocked at how well it works. I was super skeptical about the security (as you saw in my earlier comment), but after researching their certifications and encryption protocols, I felt comfortable giving it a shot. The document analysis feature saved me hours on each return. Last weekend I completed 3 returns in the time it would normally take me to do 1. The best part is that it integrates with the tax software I already use, so there was basically no learning curve. It's definitely made moonlighting while keeping my day job manageable.

If you're going to moonlight, you'll quickly discover the IRS nightmares your clients are facing. I tried helping my brother-in-law with an IRS issue and we spent DAYS trying to reach someone at the IRS. Finally discovered Claimyr (https://claimyr.com) which got us through to an actual human at the IRS in under 45 minutes. Check out how it works: https://youtu.be/_kiP6q8DX5c This service was a game-changer for resolving complicated tax issues that go beyond just filing. As a moonlighting CPA, you'll inevitably have clients with notices or problems that require calling the IRS, and without this, you'd waste hours on hold that you could be spending on billable work.

I need to apologize for my skepticism earlier. After a frustrating situation with a client who received a CP2000 notice, I reluctantly tried Claimyr. I was absolutely convinced it was going to be a waste of money, but I was desperate after spending 3 hours on hold myself. Well, I'm eating my words now. Got a call back in about 35 minutes with an actual IRS agent on the line. Resolved my client's issue in one call. This literally saved me hours of non-billable time sitting on hold, which I instead used to work on another client's return. For anyone moonlighting as a CPA, this is honestly essential - your time is too valuable to waste on hold.

One issue nobody's mentioned yet is malpractice insurance. Your corporate policy won't cover your moonlighting, and going without insurance is incredibly risky. I moonlight too, and I found a reasonably priced policy through the AICPA if you're a member. Cost me about $1,200 annually for basic coverage with a $500k limit. Also, check your state board requirements - some states require you to register your firm (even as a solo practitioner) and have a separate license for your practice vs. your individual CPA license.

Make sure you're setting aside money for taxes on your moonlighting income! This sounds obvious coming from a CPA but you'd be surprised how many tax professionals get this wrong. You'll likely need to make quarterly estimated payments unless you adjust your W-4 withholding at your day job. Also, track your time meticulously for billing and to justify deductions. I use toggl.com for easy time tracking between different clients.

Great question and congrats on the new baby! I started moonlighting about 2 years ago in a similar situation - corporate accounting role with a growing family needing extra income. A few things I learned the hard way: First, absolutely get your own E&O insurance before taking on any clients. Even if you think you're just doing "simple" returns, mistakes happen and the liability exposure is real. Second, be strategic about your client mix - I found that focusing on W-2 employees with maybe some investment income gives you predictable scope and timing. One thing that really helped me was being upfront with my day job employer early on. I scheduled a brief meeting with my manager and explained I was looking to do some part-time tax prep work that wouldn't compete with our business or interfere with my responsibilities. They appreciated the transparency and it actually opened up some conversations about potential advancement opportunities. The key is positioning it as professional development rather than just needing money. Frame it as staying current with individual tax law and building client service skills. Most employers understand that CPAs often do some side work, especially tax prep. Start small - maybe 3-5 clients your first year to see how you handle the workload during busy season. You can always scale up once you get a feel for the time commitment.