[outrenthome]

Hi!

Next Monday I am going to take my third CPA exam: REG.

As I get closer and closer to becoming certified as a CPA. I wonder if this is going to be worth it. I do love tax law with all my heart and I am currently working for a small CPA firm specialized in individual and small business tax returns. I make $40,000 per year plus $3,000 bonus. I have 2 years of experience and a Master of Science in Taxation earned in 2012.

I know this may sound like a lot of money for many, but here in Dallas, TX, it is within the low class income threshold and we barely make it paycheck by paycheck. I have no retirement benefits and I can only save about $100 a month for emergencies.

Our office staff is composed of me, my boss, a new graduate hire and an office manager… that is, there is a total of four people in this office.

My boss also hired me because he is 57 years old and he wants to retire. He is not married and does not have any children so he plans to sell his CPA business to a person he can mentor for the next 5-10 years. Once he will retire, the person who will inherit the business will pay him with a note and that will essentially be his retirement check. After retirement, he also plans to visit the office often and continue to meet with the clients and collaborate with the new owner of the business. My boss said he would want me to inherit his business one day.

These are my worries. This office essentially prepares small tax returns that do not require lots of research. It also does not officially offer accounting services (we have a girl we refer the clients to in case they need accounting). The clients are mostly people who are friends of friends of my boss… and I feel like my salary will always be the same for the next 10 years, until my boss will finally decide to retire, sell me his business, and I will be left with mediocre tax experience, a client’s list that was loyal to my boss (but may not be loyal to me!) and a huge monthly bill I will owe to my boss for the note issued when I will buy his business. That means, I will only have a chance in life of buying a house when I will be well into my 40s.

The firm grosses $250,000 per year.

Should I consider jumping ship after I get my CPA exam and hope to gain more experience in a bigger firm and negotiate a higher, at least “medium class” salary with a new employer? Or do you think I should stay here forever? How much of a salary do you think I should ask?

Am I sounding too entitled? (I think this is also part of the reason why I am asking this question in this forum)

And… by the way… I am Italian. I moved here in Dallas… for the sake of love…. 8 years ago!… The issue here is that I speak with an Italian accent… I feel very conscious about it and I feel like I may not be good enough to attract customers by myself because of my accent… However everybody says I am very likable and people feel very comfortable talking with me because they say I am able to explain complex tax laws using simple words… just with an Italian accent…and in Texas… so, should I and my spouse consider moving to a more “tolerant” state in the US? If so, what city do you suggest?

Thank you so much for your help!

[jrosen92770]

CR7 – Molte bene. Io parlo un puo di italiano. Ho studiato en Rome venti anni fa. Sei Italiano?

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[jrosen92770]

CR7 – Molte bene. Io parlo un puo di italiano. Ho studiato en Rome venti anni fa. Sei Italiano?

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[impska]

Your salary is very low. Test his seriousness – ask him to make you a part owner now and give you leave to try to grow the business.

If he balks, then move on. Get some real experience at a real firm and start your own office with three employees in a couple of years – not 5 or 10.

REG - 94
BEC - 92
FAR - 92
AUD - 99

[impska]

Your salary is very low. Test his seriousness – ask him to make you a part owner now and give you leave to try to grow the business.

If he balks, then move on. Get some real experience at a real firm and start your own office with three employees in a couple of years – not 5 or 10.

REG - 94
BEC - 92
FAR - 92
AUD - 99

[Anonymous]

Long story here, so be patient, there is a reason I'm writing all of this. 6 years ago I went to work for a CPA part time. He was 67 at the time. I worked at my full time job for 8 hours a day and then another 5 or 6 hours at his office. I did this to find out if I wanted to leave my nice, comfortable, safe, government job. I figured out quickly that I was happier in the 5 or 6 hours a day at his office, so I quit the full time job and went to work for him full time. He was slowly closing his practice before I came along and decided that it would be better for his clients to have someone that understood their business, so he told me I could buy out the firm when I passed.

Fast forward 4 years. He got in a wreck while his wife was out of town. He called me when it happened. I stayed with him until his wife could get back to Louisiana from Alabama with their oldest daughter. 9 hours in the hospital with him complaining about the neck brace, the back board, and all of the work at the office that needed to be done. I finally told him to shut up and deal with it. He did as instructed. His wife got there and I gladly handed him off to her. The next day they found out that he had a tumor in his thyroid. It was totally unrelated to the wreck. They just got lucky and found it when they did the CT scan to make sure he hadn't broken his neck. The wreck probably saved his life. He had already beat cancer twice so he figured he better get his affairs in order. He changed his will to make sure that I would get the firm and would pay his wife instead of her selling it to a stranger. She wouldn't have done that, but he wanted to make sure I was protected and I appreciated it.

Now fast forward again to 1/1/14. I own 1/2 of the firm and the gross receipts for 2013 were $240K. I'm paying him $65K for the client list, equipment, and everything that isn't nailed down. He doesn't own the building we are in, but lucky for me, my mother in law owns a commercial building that she is selling to me for $3,000. I'm not stealing it from her, I'm paying her what she paid the bank for it. The bank foreclosed on it and found out that 1/2 of the building was on her property. They had no choice but to sell to her and she got to name the price.

We do a lot more than tax returns. We do it all; payroll, write-up's, governmental audits, tax returns and anything else that needs done. Audits have a higher gross profit, but the real bread and butter of the firm are the monthly write-ups and payroll. Those are easy. So don't jump ship just yet. Talk to your boss and find out if Texas allows a non-CPA to own part of the firm. Louisiana has some really strange rules so I couldn't buy any of the firm until I was licensed. Patience and persistence pay off sometimes, they did for me.

And there are 3 of us in that office, in a very small, very rural part of Louisiana.

[Anonymous]

Long story here, so be patient, there is a reason I'm writing all of this. 6 years ago I went to work for a CPA part time. He was 67 at the time. I worked at my full time job for 8 hours a day and then another 5 or 6 hours at his office. I did this to find out if I wanted to leave my nice, comfortable, safe, government job. I figured out quickly that I was happier in the 5 or 6 hours a day at his office, so I quit the full time job and went to work for him full time. He was slowly closing his practice before I came along and decided that it would be better for his clients to have someone that understood their business, so he told me I could buy out the firm when I passed.

Fast forward 4 years. He got in a wreck while his wife was out of town. He called me when it happened. I stayed with him until his wife could get back to Louisiana from Alabama with their oldest daughter. 9 hours in the hospital with him complaining about the neck brace, the back board, and all of the work at the office that needed to be done. I finally told him to shut up and deal with it. He did as instructed. His wife got there and I gladly handed him off to her. The next day they found out that he had a tumor in his thyroid. It was totally unrelated to the wreck. They just got lucky and found it when they did the CT scan to make sure he hadn't broken his neck. The wreck probably saved his life. He had already beat cancer twice so he figured he better get his affairs in order. He changed his will to make sure that I would get the firm and would pay his wife instead of her selling it to a stranger. She wouldn't have done that, but he wanted to make sure I was protected and I appreciated it.

Now fast forward again to 1/1/14. I own 1/2 of the firm and the gross receipts for 2013 were $240K. I'm paying him $65K for the client list, equipment, and everything that isn't nailed down. He doesn't own the building we are in, but lucky for me, my mother in law owns a commercial building that she is selling to me for $3,000. I'm not stealing it from her, I'm paying her what she paid the bank for it. The bank foreclosed on it and found out that 1/2 of the building was on her property. They had no choice but to sell to her and she got to name the price.

We do a lot more than tax returns. We do it all; payroll, write-up's, governmental audits, tax returns and anything else that needs done. Audits have a higher gross profit, but the real bread and butter of the firm are the monthly write-ups and payroll. Those are easy. So don't jump ship just yet. Talk to your boss and find out if Texas allows a non-CPA to own part of the firm. Louisiana has some really strange rules so I couldn't buy any of the firm until I was licensed. Patience and persistence pay off sometimes, they did for me.

And there are 3 of us in that office, in a very small, very rural part of Louisiana.

[taxman89]

You have a MST. you could get a job with a corporation in industry that would easily pay double what you are making. I am in a smaller market than dallas and know for a fact the people with MSTs at our company (regardless of if they have their CPA) are making double

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[taxman89]

You have a MST. you could get a job with a corporation in industry that would easily pay double what you are making. I am in a smaller market than dallas and know for a fact the people with MSTs at our company (regardless of if they have their CPA) are making double

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[impska]

You should also consider whether running your own place is what you want. There's a good chance that this little enterprise isn't worth investing in even if you are. Especially given how limited your experience and opportunity for learning is under this guy. But it sounds like you're looking for some challenges, anyway.

Think about this way: The firm you're at now maybe nets $100k. In 5 years as a CPA in a big market like Dallas, you should be netting at least $100k. In 10 years, so many more opportunities, that it would be hard to predict where you could even be in 10 years. Unless you stay at your little firm, making 43k a year. Forever.

If you'd just rather work regular hours and make a bunch of money, then you should look at private. Some of the biggest offers at my alma mater were coming out of Texas from oil and gas. Tax consulting at a Big 4 could also be a good opportunity, given your interests.

Maybe look at a medium-sized firm if you're actually interested in having your own tax practice, because you'll want a breadth of individual and small business experience – which can be hard to get at Big 4. It would be nice if you could also pick up a little audit, because there are times when small-business clients need an audit.

REG - 94
BEC - 92
FAR - 92
AUD - 99

[impska]

You should also consider whether running your own place is what you want. There's a good chance that this little enterprise isn't worth investing in even if you are. Especially given how limited your experience and opportunity for learning is under this guy. But it sounds like you're looking for some challenges, anyway.

Think about this way: The firm you're at now maybe nets $100k. In 5 years as a CPA in a big market like Dallas, you should be netting at least $100k. In 10 years, so many more opportunities, that it would be hard to predict where you could even be in 10 years. Unless you stay at your little firm, making 43k a year. Forever.

If you'd just rather work regular hours and make a bunch of money, then you should look at private. Some of the biggest offers at my alma mater were coming out of Texas from oil and gas. Tax consulting at a Big 4 could also be a good opportunity, given your interests.

Maybe look at a medium-sized firm if you're actually interested in having your own tax practice, because you'll want a breadth of individual and small business experience – which can be hard to get at Big 4. It would be nice if you could also pick up a little audit, because there are times when small-business clients need an audit.

REG - 94
BEC - 92
FAR - 92
AUD - 99

[yourmomsaCPA]

Just knowing the stated info, I wouldn't go anywhere until you are certified. You're SO close and it will make a world of difference in your job search.

Once that is over, I would leave in a heartbeat. I've never worked in the tax arena, so I'm not sure about the typical salary rate, but I assume it's not THAT far off from other areas or nobody would go into it. I received my degree and began at a CPA firm at 21 making $36,000 + OT. This was in a rural area an hour north of Dallas. I hated it more than anything I could type to describe. Hell on earth. I left after 6 months and took a job as a cost accountant in a manufacturing facility for 42k a year (same area). Worked there for two years (loved it) and then met my husband and moved to Houston – the industry accountants's wonderland. A headhunter set me up with 3 interviews in 1 day and I got all 3 job offers and took one as a plant accountant for 60k/yr (23 years old at this point.

Fast-forward – I'm 31 (how did THAT happen) and I'm the controller of 1 of 17 global subs of our parent company and my sub does around 150 million/yr (my computer decided to crash yesterday so I've got some time on my hands ;)). When the parent company purchased us, we had to convert to IFRS and dive into the fun world of IC transactions and consolidations. Anyways, I'm very fortunate to have this position without being a CPA (the ONLY controller globally that isn't which my CFO loves to remind me about) which is one reason why I'm doing it. I make right at 100k/yr, have healthcare paid for 100% for my family and I (5), started with 3 weeks of vacation 4 years ago, and I leave the office everyday at 4 (workout at lunch). The other reason is bc I'd have trouble finding a similar position without it.

All of that was to illustrate someone else's journey (and leaving jobs worked wonders for me!). There ARE other options out there…good luck!

FAR - 87 2/18/14
AUD - 84 4/2/14
REG - 87 7/23/14
BEC - 78 8/26/14

I'm finally an *official* CPA - TX

[yourmomsaCPA]

Just knowing the stated info, I wouldn't go anywhere until you are certified. You're SO close and it will make a world of difference in your job search.

Once that is over, I would leave in a heartbeat. I've never worked in the tax arena, so I'm not sure about the typical salary rate, but I assume it's not THAT far off from other areas or nobody would go into it. I received my degree and began at a CPA firm at 21 making $36,000 + OT. This was in a rural area an hour north of Dallas. I hated it more than anything I could type to describe. Hell on earth. I left after 6 months and took a job as a cost accountant in a manufacturing facility for 42k a year (same area). Worked there for two years (loved it) and then met my husband and moved to Houston – the industry accountants's wonderland. A headhunter set me up with 3 interviews in 1 day and I got all 3 job offers and took one as a plant accountant for 60k/yr (23 years old at this point.

Fast-forward – I'm 31 (how did THAT happen) and I'm the controller of 1 of 17 global subs of our parent company and my sub does around 150 million/yr (my computer decided to crash yesterday so I've got some time on my hands ;)). When the parent company purchased us, we had to convert to IFRS and dive into the fun world of IC transactions and consolidations. Anyways, I'm very fortunate to have this position without being a CPA (the ONLY controller globally that isn't which my CFO loves to remind me about) which is one reason why I'm doing it. I make right at 100k/yr, have healthcare paid for 100% for my family and I (5), started with 3 weeks of vacation 4 years ago, and I leave the office everyday at 4 (workout at lunch). The other reason is bc I'd have trouble finding a similar position without it.

All of that was to illustrate someone else's journey (and leaving jobs worked wonders for me!). There ARE other options out there…good luck!

FAR - 87 2/18/14
AUD - 84 4/2/14
REG - 87 7/23/14
BEC - 78 8/26/14

I'm finally an *official* CPA - TX

[fsugirl2005]

@ yourmomsaCPA

You are truly blessed to have that kind of salary at 30 something. I hope you bless others who are less fortunate. God willing, I will reach that kind of salary within the next 5-10 years(I'm already 34). That's why I'm specializing in one industry and obtaining the different industry licensures. Fun stuff. =)

AUD - 10/21/16 (75----07/2010 expired)
FAR - 10/28/16
BEC - 11/2016
REG - 01/2017

Using Gleim CPA Review, Ninja Audio, Ninja Book

[fsugirl2005]

@ yourmomsaCPA

You are truly blessed to have that kind of salary at 30 something. I hope you bless others who are less fortunate. God willing, I will reach that kind of salary within the next 5-10 years(I'm already 34). That's why I'm specializing in one industry and obtaining the different industry licensures. Fun stuff. =)

AUD - 10/21/16 (75----07/2010 expired)
FAR - 10/28/16
BEC - 11/2016
REG - 01/2017

Using Gleim CPA Review, Ninja Audio, Ninja Book

[yourmomsaCPA]

Well, one thing I KNOW I'll be doing is GIVING my review materials away when I pass. I remember being a new grad and would've loved a 31 year old helping a youngster 😉

FAR - 87 2/18/14
AUD - 84 4/2/14
REG - 87 7/23/14
BEC - 78 8/26/14

I'm finally an *official* CPA - TX

[Author]

Replies