[ML]

Hi everyone, I wanted your input (either from employee or owner perspective) about whether any of you have gotten raises after passing the exams or if your company waited until you received your actual license. Some people have mentioned receiving bonuses after passing, some said they got immediate raises for passing and others said they didn’t get anything until they received their license. The problem is I am most likely going to have to take additional courses to meet the CA 150 unit requirements and the soonest that probably will be complete is next summer 2019. I have almost 10 years of experience, half in private and half in public accounting. I have worked at the same firm for 5 years and though this firm is a smaller firm I have extensive experience in many higher end/difficult tax projects. So on top of all the regular tax returns (1040, 1041, 1120, 1065, etc) I also specialize in estate, non-profits, and government. Not to mention I also run entire audits from the planning phase to report distribution.

I currently make $60K which as you know in CA is barely a wage to live on when rent in So-Cal (LA area) averages $1,800-$2,100 for a single bedroom. And since passing the exams, none of the partners at my firm have mentioned anything. The senior partner even casually said “congrats, you are now another step closer to obtaining your license.” Personally, I was more offended because passing the exam practically IS the license. Passing the exams isn’t just a little step towards obtaining the license, it’s 99% of it. In summary I just wanted to know what your input is and if I should bring it up to the bosses because I have sacrificed and worked so hard during the exams. I studied through tax season, audit season, extension season. I have sacrificed weekends to be in the office to help with projects when I should have been at the library studying. I have been hard worker in general, even before the exams but after all the struggling and finally passing them, the fact that there’s little to no recognition for that upsets me. My wage in my opinion doesn’t fairly represent the amount and level of work I do and if this firm plans on waiting till next summer for me to get my license to give me a raise I’m likely not going to stick around that long. In addition, like a lot of other members have stated, a lot of times the current firm they work at while obtaining their license often times doesn’t come close to their expectations in wage increases. The big bump usually comes when they leave to find another job. I do like my job and the firm, not to mention I have certain financial obligations right now that makes it very risky for me to look for another job right now but my god I gotta be able to financially survive too you know? Anyways, some input from your own experience, or maybe a different perspective if you’re an owner would be much appreciated. Thanks!

FAR - 7/31/14
AUG - ???
REG - ???
BEC - ???

"These are the precincts of pain. A goddess lives here. Her name is victory." - Unknown

[CPYAYYY]

That's a very low salary for an accountant in SOCAL. Northern California has a lower cost of living and higher salaries than that. Move to NORCAL! lol

[Recked]

Your income seems low to me, but until you have that license you're kind of stuck.
It sucks, trust me… I was there as well. They know they can take you for a ride for now, and ultimately you need that experience verification.
I would aggressively get those credits. If your work has to slack because you need to focus on school, then so be it.
Get your credit, get your experience verification, and then you will be in a much better position to negotiate after you are licensed.
Stop treating the firm as if it were your own. Make yourself priority #1, and focus on getting yours.
****
Also, it never hurt anyone to ASK for a raise. You can't really demand shit right now, and you need to keep the peace, but it doesn't hurt to ask.
If they say no, you can ask what sort of raise you might expect once you are finally licensed.
If you don't like the answer, even more reason to focus on getting those credits so you can bounce.
****
How much do you bill out yearly and whats your hourly billable rate? 60k salary, plus what benefits?
If you're 60k salary plus about $5k health insurance, and perhaps a little 401k kick, I'd expect you to be billing about $180k roughly, maybe more depending on your firms overhead.
If you're not hitting 180k-200k first focus on your credits, then focus on producing more. Or leave for a raise.
You're pushing $30/hour without being licensed, which is sort of respectable for a smaller firm, but again, depends on your numbers. Get that license!!

[ML]

@Kay S – Thanks for chiming in. Indeed my salary is definitely not competitive. This firm is getting a great deal out of me between wages/output and efficiency. When I went from private to public 5 years ago, at the time the economy still wasn't great and I also took a hit in wages to get into the industry and to gain experience and learn. I figured after 2-3 years I'd bounce and move to a higher paying job. But of course life never goes as you planned and around the 2-3 year mark was when I decided to also study for my CPA. When I was studying, all I focused on was to make sure I passed first before figuring out where to move on from there with my career. So here we are now, where I think my past self may have slightly screwed my future self over in wages but at least I have passed the exams and the experience I have is in high demand. I'm just trying to figure out what my next best move here is and was hoping maybe I could gather up some good arguments/advice/information from other members.

FAR - 7/31/14
AUG - ???
REG - ???
BEC - ???

"These are the precincts of pain. A goddess lives here. Her name is victory." - Unknown

[alloverit]

I think all firms will wait until you have license in hand. Here's why: About 5 years ago I knew someone who passed the exam, but didn't pass the background check. She actually disclosed some stuff she had been involved in like drugs and a child abuse issue I think. Anyway, it was quite an awkward situation as she had told everyone she passed and then she never became a CPA.

When I knew her I didn't know the story (found out later) so I don't know how she could sit for the exams and then fail the background check, but that's probably why no one gives out the raise until license is in hand.

Every firm is different. My firm makes a BIG deal about it, but I think some firms resent having to give the raise. I actually feel guilty about how well I'm treated.

Sounds to me like you're a very good accountant and should maybe test the waters by looking around a bit.

Good luck

[ML]

@Recked – I absolutely agree with you, especially the part where you say “stop treating the firm like your own.” And yes, I am currently trying to get my license application out ASAP haha. I got my last passing score on Tuesday, ordered the PETH materials Wednesday and this weekend I plan on starting to crunch it out. After my application gets submitted along with my work experience then the fun begins. But you definitely nailed it in terms of self-priority. I swear, loyalty these days just gets you killed and is so underappreciated. Our firm, like many others have struggled the last 2 years trying to hire a solid experienced accountant. We have clients asking us to refer accountants to them if we know any and we laugh and tell them even WE can't get any decent bodies through the door. I have seen like 6-8 hires come and go in the last year alone. None of them have stuck around. We lack man power so everyone basically is working their asses off all the time. Tax season just adds more fire to everything that's already on fire. So it blows my mind when this firm doesn't step up and acknowledge the value certain employees bring in. Last year we lost a great staff member who moved to Arizona because apparently she asked for a raise due to the cost of living increasing, she was a single mom, etc etc. And firm was like nah. So she left, and till this day we still haven't found anyone close to her caliber. But on the other hand, since I keep in touch with her, she obtained her EA in AZ and is basically flourishing there.

FAR - 7/31/14
AUG - ???
REG - ???
BEC - ???

"These are the precincts of pain. A goddess lives here. Her name is victory." - Unknown

[ML]

@Alloverit – thanks for chiming in, I'll definitely take your word to heart (and @recked) and test the waters as soon as my application gets sent in.

FAR - 7/31/14
AUG - ???
REG - ???
BEC - ???

"These are the precincts of pain. A goddess lives here. Her name is victory." - Unknown

[cpa1234]

I was at a small firm and I don't believe there's any sort of raise just because you passed. Every year at your review as long as you are reaching the goals set in place and discussed they gave some sort of raise. I believe you get maybe a $500 bonus? And you got CPA chiseled into your name plate. The reason you wanted the license at that firm was to be promoted beyond senior, because obviously promotions come with raises. so it wasn't like an instant raise, it came with time.

[Superdude3000]

I'm at a middle market public firm and I got a $3K bonus after passing – I still am not licensed as I won't have one year of experience until the beginning of November.

[TommyTheCat]

Mike – passing the exams are a big hurdle towards licensing but aren't the “99%” of it that you stated. Case in point I passed the exams back in Dec 2017 and am still waiting to get my licensed issued. I graduated in 2006 and back then the coursework needed to be certified in CA was much less than the 150 semester / 225 quarter units. So i needed 27 more units, awesome. Jammed them out a JC Q1 and Q2 2018.

I wouldnt be surprised if when its all said and done the time i took from cracking the first book for the exams to getting my 4th section passed (12 months) is shorter than the time it took me to get the remaining units I needed (27 quarter units), pass the PETH exam (which is a doozy, you'll find that out if you havent already), and getting the friggin CBA to actually process the damned application (they have been sitting on it since mid June and have yet to even begin the final review process, which takes 10-12 MORE weeks. I will be kinda surprised if I am certified come December 2018.

The journey is much more than just passing the 4 exams.

[Anonymous]

Although one should always try to keep some perspective and humility, passing is a tremendous accomplishment and congrats again. But usually the only solution in a crappy/low paying job is to leave. I'm sure most of us have been there.

[tmacpa]

It sounds like you don't expect raises. Does this mean they haven't given you any in the past OP? Did you start out off at 60k when you came over from industry?

I agree with @recked, bust your a** to get those credits as fast as you can, while making sure your fulfilling the accounting and business reqs in CA. I recently got my license number, soon after getting my last score.

I would make my number 1 priority the credits, as you will be able to have even more negotiating leverage in looking for a new job when you have the letters. Unless it's a cpa firm, having the tests passed is not nearly as helpful to a job seeker as having the license.

[AsianNinja]

I passed the exam and asked for 55k a year when I have a license. My boss' reaction feel like I am asking too much. Like seriously? 55k for a CPA is too low in my opinion. What do you guys think?

[ML]

@Tommythecat / @Calvinus / @Tmacpa – Thanks for chiming in, appreciate all the different thoughts and input. To answer a few more questions. I have been getting raises on an annual basis, so no complaints there. The raises have been slow and steady, however the work load/responsibilities being taken on have been outweighing the increase in wages more and more every year hence the mention earlier that I don't believe my wages fairly represent the level and output of work I do. This particular year has actually been the worst. Everyday has felt like it's April 13th. I apologize if I came off the wrong way when I said passing the exams was 99% of the battle. Didn't mean to sound like passing the exams suddenly turned me into being entitled or anything, it was more related to how casually the senior partner brushed off the accomplishment. And it's not like I seek his approval or anything, I could care less because he's a d*** of a boss in general. It's more like his attitude towards the accomplishment tells me a lot how he values his employees and certain milestones. I know there are many others who are still dealing with gathering all other requirements to obtain the license itself. In conclusion, I agree with majority of you in hauling ass and getting the required credits. I plan on knocking out the CA ethics exam this week and getting my application submitted asap. From there I'll just have to wait and see what classes I'm missing. I will also speak with the other partners of the firm that I'm much friendlier and closer with. All of the employees and bosses here are all great people, hard workers and super nice. It's one of those situations where the one person who owns majority of the firm and makes all final decisions also happens to be the person that everyone hates and the person I'm ultimately stuck with when it comes time for salary negotiations. Again, thanks for all your comments!

FAR - 7/31/14
AUG - ???
REG - ???
BEC - ???

"These are the precincts of pain. A goddess lives here. Her name is victory." - Unknown

[tmacpa]

^where do you live. How many years and what's your title? What are you making now

[kdawg22]

I received a $2,600 raise a day after i passed the exam. I went into work told the partners I passed. They called me into the conference room a hour later and gave me the raise.

[Author]

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