[CPAmePLS]

I recently got a job offer for 45K a year that will be pushed to 55k once I’ve passed the rest of my CPA exams. It’s at a small venture capital firm. I will essentially be the Accounting department. I am supposed to respond by this coming Monday and I’ve been very conflicted. I’ve seen varying reports for CPA salaries and I’ve been told by some that it’s good to start with a small firm while others have said almost the complete opposite – that I should go into public accounting for a big firm (not necessarily BIG 4).
Any suggestions?

[Becca]

I think that's a good salary, but it also depends on your area and the cost of living. This could be good experience – especially if you would be the entire Accounting department. And if you don't like it there, you could always move on to somewhere else. I, personally, prefer a pleasant work environment over salary. I've worked too many places that suck the life out of you, and the money just isn't worth it.

Either way, congrats on the job offer. It's nice to have options.

[Superdude3000]

I work in public accounting (mid-tier) and started at 56k. I got a 3k bonus for passing the exam. My career coach told me the smallest raise he's ever received is 9% and had been as high as 15% – these are annual raises. He's worked there for 5 years. From what I've learned public is where the long term money is at but I'm still a first year so I can't exactly say that's the case yet

[Anonymous]

CPAs, TYPICALLY, do not earn a very high salary in the FIRST FEW years of their career. They do, however, start earning more as they progress through their career. It can be common for a CPA to earn $100K+ once they get decent experience. If I were you, I would want to find out how likely it is for CPAs to progress as such throughout that venture capital firm. If progression throughout that firm is not likely, then it might not be worth it if you are looking for a higher salary.

The reason you might hear people say “go into public accounting” is because it is much more common to progress and many opportunities to earn a higher salary few years down the road. Even the big 4 isn't going to start you off with $75k+ if you have no experience and no CPA (in the accounting field). What you might end up doing at the venture capital firm might be significantly different than what you would typically do in public accounting – this will also dictate your salary.

I agree with Becca in that it is very important to look at other factors besides the salary, but it really depends on your priorities.

[Adam]

Market rate is 45-50k most places…having CPA you can negotiate a little higher..

I work in Downtown Chicago am a CPA in public and am getting dicked on pay 3rd year of experience making 60k plus bonus. 10 person firm.

Dont worry about pay in the beginning.. gain experience get the license and the money will follow. If it doesnt move around and negotiate higher.

[OnmywaytoCPA]

I have 14 years of accounting experience. I got my first accounting job when I was 19 (about a month before I turned 20). The pay was around $28,000 a year. Then my next job at a small CPA firm after graduating with my BA was $30,000 and having a little over two years of experience. Now my current pay as a controller at a small company with 14 years experience, a CPA and MBA is 90,000 plus annual bonus. Also, I work as a Tax Advisor part-time during tax season for Intuit which pays around $9,000. That’s around $99,000 plus bonus for the year. My salary grew drastically over the last 18 months due to my CPA license. Just put in the time and be patient. With a CPA license and about 5 – 7 years of experience, it won’t matter whether you’re at a small firm or a Big 4 firm, you’ll either be close to $100,000 or way above it.

REG - 74, Retook 6/10/16, scored a 72 (Hate this exam)
BEC - 69, 79, 8/1/15
AUD - 83, 4/4/15
FAR - 77, 2/27/16

[Anonymous]

Big 4, Midwest, starting is 53k (larger markets start at 57-59k), 5k cpa bonus, cpa reimbursement for exam fees/becker review course, year end performance bonus, 1.2k/yr tuition reimbursement, and 401k match.

Annual salary increases of 7-15%, larger increases on promotion year (every 2-3 years).

[ForgottenOne]

@Christophulous “CPAs, TYPICALLY, do not earn a very high salary in the FIRST FEW years of their career”

Indeed, I graduated in December 2014, got EA in June 2015, CPA in November 2016, and right now I am still struggling to get paid above 40k.

[plewpaasdfasd]

what state are you in..? @forgottenone

[ForgottenOne]

Richmond VA, I am currently working with a recruiter and he still couldnt land me a job that pays 45k or above.

[Bourne]

I currently work in NYC, not yet a CPA, not working in public, a year out of college and make more than $55k. It just depends how valuable you are to a firm and how much growth they see in you

[Anonymous]

I was making $50K without a CPA. So around $55K with OT/Bonus. I assume once I get my CPA I will not settle for anything less than 60K here in the South. That is with 3 years of accounting experience as well. I can probably get around $65K even if I play my cards right.

[jdub]

It depends what you wanted to do. I never wanted to work in public accounting, so my first few jobs sucked. And honestly, I never wanted my CPA and the only reason I'm getting it is to be more marketable. It has not been a requirement for promotion or hire in any job that I've had for both privately owned and publicly traded companies (publicly traded, it is once you are signing financial statements obviously).

I'm still not finished, but with 6 years of full time work experience (plus internships during college) and an MBA, I'm currently in the upper 60s including bonus in the midwest where cost of living is one of the lowest in the nation. But you have to grind and be patient. My first job out of college 6 years ago I made less than 30k, was 21 years old, and was still living off ramen and easy mac.

And there are lots of factors to look at other than salary: work life balance (likely not much if you're public making the “big” money), 401k match, health care, bonus structure, time off packages, work place attire (I currently get jeans daily – it rocks), flexibility, etc.

Also, if you know people in the industry, NEVER underestimate the power of networking. That's how I have been able to more than double my salary without a CPA behind my name in 5 years. I was referred to 2 different companies, and then I had stellar letters of recommendation, which I was told got me the job over someone with a CPA. So take the job, make those connections, gain that experience, and move on to something bigger and better after a year or two.

Congrats on the offer, keep grinding.

[Operation_CPA]

Big 4 NY Metro – I started at $58k. That is without CPA.

[Romney_p]

I started at $35K in DC (private industry) with no CPA; 8 years of experience later and I'm more than double that still with no CPA. A lot of what determines your salary is tied to the local market.

I'd suggest looking at the Robert Half Survey. Be realistic about what your job actually is in their tables, add/subtract the locality multiplier, then whack off about 15% of that number since they have a vested interest in making accountants look more expensive.

Depending on where you are in your career being the entire accounting department for a small firm may not be the best idea long term assuming you don't have a decade plus of professional experience. Accounting at a small business usually ends up being a catch-all department for everything paper work related; unless you're careful you'll soon find yourself spending an inordinate amount of time doing HR and legal related work as well. Also spending too long at a small firm will hinder your ability to get a job at larger firms (in public or industry). Its easier to go from a large company to small one then the other way around.

[Go.For.Broke]

I think that 45K right out of college and non-CPA sounds pretty typical/predictable. A 10K bump for passing the exam would be nice – especially if you're still not very experienced (still somewhat fresh out of college after you pass the exams).

Best of luck on the decision-making!

[Author]

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