[Needs Advice]

To start, I am merely seeking information about what others have seen in similar situations. I understand WHERE and WHAT are huge deciding elements, but having something to compare to is better than nothing. Earlier this year I became licensed (CPA) in the Mid West. I work at a mid-sized CPA firm. After five years of school (150 credit hours) and a year and a half of CPA studying, I thought that being licensed would have a more immediate effect on my pay. When I had my review recently however, I got a standard pay bump and was told of future potential opportunities but nothing definitive. My wife is quite upset, as we thought this would be more of a bump then it was. Using salary websites I can’t find any consistency for comparison. Currently, I make $50k with

large

amounts of extra hours during busy season. I have over five years experience in a CPA firm as a staff accountant, but is my pay off base or am I on track and just need to put in more time.

BEC: 7/31/16 (Awaiting Results)
AUD: 9/8/16
REG: 10/22/16
FAR: 12/3/16

[jenpen]

I don't feel like my CPA has helped me get more money by itself, but I think that it has helped me get jobs where I earned more money. My first job where I was when I got licensed was a small firm and I was already under market at $48k, and only got a bonus when I was done. I had 4 years of experience and made the jump to a mid-size firm as staff (no senior positions open) starting at $62k. The first-year associates I hired with started at $52k in the mid-size firm. Soooo it sounds like you are maybe under market, depending on your area. I would probably start looking around for a senior position if I was in your shoes…but that's just me.

AUD - 56 - 68 - 61 - 9/8/16
REG - 75
FAR - 7/15/16
BEC - TBD

Wiley CPAexcel and NINJA 10 Point Combo

[Recked]

Maybe you're on track, maybe you're being taken for a ride.
What is your current hourly billable rate, and what are your billings looking like for the year?
Realization rate? Overhead rate?
What type of work are you currently doing and how much supervision do you require?
What state and are you near any large metropolitan areas?
Most newly licensed CPAs often find that they need to switch firms/employers to receive a sizeable increase in salary.
You might be doing more trivial tasks in that firm that does not justify a higher salary, or perhaps you need more experience to start taking more lead and responsibility, or perhaps your employers are just leveraging your current skill set to make themselves more money while keeping you on the hook with “just enough” while talking about “future potential” this and that. I was in the third group and regret sticking around for empty promises. Don't be like me, get in the job market and do some interviews, get some other offers to see if you are being paid a fair salary.

[Needs Advice]

@Recked

What is your current hourly billable rate, and what are your billings looking like for the year?
A: Not 100% sure as I am not shown the “numbers”, but a partner has chewed me out for doing certain things that should be done by lower paid individuals and said we bill your work at $100 per hour and more depending on the type of work.
Realization rate? Overhead rate?
A: Again, in my reviews this is not discussed. I have no idea what my actual versus billed is.
What type of work are you currently doing and how much supervision do you require?
A: You name it, I do it. From something super small like a local ordinance Personal Property Tax return to being in charge of an entire audit, I have done it. Most of my work is seeing the whole picture (i.e. Input to Financial Statements to Tax Return). I mostly work on compiled and reviewed financials throughout the year and during tax season focus on returns.
What state and are you near any large metropolitan areas?
A:MI, not really but also not far from some (i.e. within an hour)

BEC: 7/31/16 (Awaiting Results)
AUD: 9/8/16
REG: 10/22/16
FAR: 12/3/16

[Silent]

You didn't get hired as CPA staff accountant and now that you got your CPA license they are not giving you the extra pay bump because either a) they do not need another CPA accountant b) they do not believe you will leave anytime soon. If you want to get that extra pay bump you need to jump to another firm and get hired as CPA. That way you will come in on different pay scale.

[jombe]

Not sure how small of a city/town you live in, but here's my story.
–
1) I majored in Accounting, but didn't want to work in accounting after I graduated.
2) I started with making 34k in Orange County, CA as a logistics assistant.
3) Fast forward, held other operational roles across 4 companies including the first one, for about 6 yrs. Went from 34k to 50k still in Orange County, CA.
4) Didn't see much future in what I was doing, so I decided I wanted to be a CPA.
5) Passed the exams and got hired in a 150+ public firm in Colorado @ 55k.
6) A year later, I got 59k.
7) A year later, I got 63k and I was licensed a couple weeks after I got my raise.
8) I wasn't happy w/ how the partners' calculated my raise (won't go into details here), so I started looking. Within two weeks, I landed a job @ 75k. I was initially offered 70k, but I used CPA license as one of reasons (there were other selling points as well) I deserved 77k. We settled @ 75k.
–
So yeah, like Jennifer said, I don't think getting your CPA license will have much impact @ your current job, but it definitely opens up doors to higher-paying positions in my opinion.
–
Also, even within Colorado, the pay diff between Denver area vs. Colorado Springs for accountants is pretty large. If you are making 50k after 5 years, you are either in a super small town, or your employer is super stingy.

FAR - 94 (10/4/15), Local Prep Online Lectures, BISK & NINJA MCQ
AUD - 99 (1/19/16), Local Prep Online Lectures, BISK & NINJA MCQ
REG - 96 (4/19/16), Local Prep Online Lectures, BISK & NINJA MCQ
BEC - 91 (7/19/16), Local Prep Online Lectures, BISK & NINJA MCQ

581 days of listening to lectures, reading texts & 10,000+ MCQs...

[Recked]

If you are doing glorified bookkeeping at about $100/hour billable, and then grinding it out in tax season you might be right around a decent mark, which should increase with experience.
I would still shop around to get some other competitive offers. I would also make sure you always carry business cards with your name, and take every opportunity to network and hand out cards. The ultimate name of the game in this type of work is client loyalty and your book of business. If you are just servicing the partner's book of business, then you just ride it out on the salary. if you start getting clients, and bringing in new business, then you become a more valuable asset, and accordingly worth more to the firm, or to yourself in the long run.
–
Also check Robert Half. The online salary tool is useful and can narrow down by area and experience to give you a ballpark.

[Needs Advice]

Thanks for the feedback everyone. As always, I greatly appreciate your insight Recked. I just recently got my business cards, I will start putting my name out there and selling our brand here. I like it here and its close to home so I want to do what I can to increase the chance that I don't have to leave. That strategy makes the most sense.

BEC: 7/31/16 (Awaiting Results)
AUD: 9/8/16
REG: 10/22/16
FAR: 12/3/16

[Recked]

The next time you get a chance, ask one of the Partners point blank what it takes to make partner.
See if they will lay out a framework or roadmap. Get it in writing if you can.
Nothing like jumping through the hoops for 5-10 years and then finding out you trusted the wrong people.
Or maybe ask for a roadmap or guidance to progress. Using the term partner might be taken the wrong way at this point in your career.

[She]

Great advice here!

@Jombe I am in Colorado too. Would you mind forwarding my resume at your firm? Your post in another thread really helped me to get my CPA License. Thank you so much!

[LuckyGuy292]

I am a CPA in the midwest as well and my salaries were as follows:

Year 1 – $46,500 (new hire)
Year 2 – $47,750
Year 3 – $50,250
Year 3 – $54,500 (switched firms)
Year 4 – $57,750
Year 5 – $60,250
Year 6 – $62,750
Year 7 – $74,000 (year of licensure)

I work primarily in audit/assurance but i do prepare a few corporate returns every year as well. My realization rate typically floats around 77-85% depending on the work. I've been billing around 1,900 hours each year but my billable numbers have declined as i have assumed more firm responsibilities.

[Recked]

Thanks for posting that information. It will be helpful to someone.

[Author]

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