[outrenthome]

Hi guys,

I wanted to ask this question to see if it is time for me to look for better opportunities elsewhere or if I should be content with what I have.

I am working for a small CPA Firm of about 15 CPAs and 3 partners. I am making about $95,000 per year including bonus. I have 4% 401K and HSA health and dental insurance. I have 5 years of experience in preparing pass-through entity returns dealing mostly with real estate and oil and gas. I am considered a senior tax accountant. This is in Dallas, Texas.

Is this too little of a salary? Should I expect more?

Thank you for your help!

[Recked]

Might want to check out the Robert Half salary guide.
The only real way to know you “street value” is to get out there and shop around.

How much are you billing out every year? What's your billable hourly rate?
Are you bringing any clients/business into the firm?

[turo9992000]

Do you know how much you are billing? At my firm, in our yearly review we go over our billable amount for the year, and the amount realized. We set goals for the next year. We are paid 50% of our billable amount.

[outrenthome]

The firm bills $150.50 per hour I worked on any client. Can this help? Can you tell what I should expect?

In 2017 I worked 1,870 billable hours.

I don't have any clients I am bringing into the firm.

Thanks.

[Recked]

So you billed out about 281,435 and you cost 95k salary, 7k employer's SS and medi, 5k ish 401k, and probably another 5k for health insurance and 3k for HSA, total cost of 115k.
You're currently about 40.9% your cost as compared to what they billed for your time.
I guess its up to you and your local job market as to whether that is reasonable.
I would think you might be worth more, especially with the Gas & Oil experience in Texas.
Might be time to get a resume together and throw the hook in the water.

[jpj230]

I have 4 years of experience, CPA, and I make just under $60k in East Texas. No benefits other than a Simple IRA. My firm bills me out at $80/hour. I was looking for $72k. Count your blessings.

[turo9992000]

@jpj230, $80 per hour? what kind of work do you do?


@outrenthome, start bringing in clients. Go to events and talk about your firm. It's time to start building your book of business.

[jpj230]

Mostly business tax, some individual tax preparation, review smaller returns prepared by other staff, and compilations. My last job I was billed out at $120/hour. I've tried to tell the partners that rates have gone up over the last 30 years, but to no avail.

[Recked]

1870 billable hours is pretty astounding considering 40 hours a week x 52 weeks is only 2080, less 2 weeks vacation leaves 2000 hours a year.

[turo9992000]

I'm not a CPA yet, have 5 years experience and I'm billed at $190. I live in CA. My boss wants me to get my CPA so he could bill me at 240. I don't have nearly as many billable hours as outrenthome though.

[jpj230]

How many billable hours do you have turo9992000? And you're paid 50% of what you bill? I have the benefit of a low cost of living in my town, but my student loans are the same no matter where I live. Might have to move back to a city.

[Anonymous]

I'd say you are sitting nicely at that salary…my husband has 8 busy seasons in audit at a firm in Colorado and makes barely $90k so I think $95k for only 5 years is great. Even at 6 years in audit at my previous firm I was in low 70's when I left which was earlier this year.

[turo9992000]

@jpj230 I was wrong in my previous post. I get paid 50% of the amount realized. I average about 1500 billable hours and about 80% of that is realized.

[Author]

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