[FearTheBeard]

Hey guys! I know there might be some existing threads dedicated to this topic, but I wanted specific advice regarding my situation. I’ve been working at a public accounting firm for about 8 months now. I have passed all my exams and recently received my CPA license. Does anyone know what a typical raise is after receiving a license, given the following facts:

I was hired as an audit associate, with a salary around $55k, at a regional firm in a metropolitan area. My total accounting experience is a little over a year. I think the firm will have compensation discussions in the next couple months, so how should I approach these meetings? What is a reasonable raise (e.g. 8 – 12%) at this point in my career, and should I request something specific? If it means anything, I don’t think any of the other staff (about 30 people) have finished their exams, although they have about the same amount of work experience (or more). In fact, quite a few seniors I’ve worked with don’t even have CPA licenses.

I’m not saying I should receive a raise based solely on the fact that I’m licensed, but I know people at comparable sized firms who received double-digit raises without passing a single section of the exam. I appreciate any thoughts you guys have to offer. 🙂

[Anonymous]

This may sound backwards, but I would say that the fact that many of the seniors don't have their license will mean that your license-raise will be less. It would seem to indicate to me that the firm doesn't value the license too highly, if they haven't required or pushed their seniors to all have it! So, if I was you, I'd be trying more to push to have other accomplishments I could point towards. Of course the CPA is worth pointing out! But, beyond that, gaining more expertise in some part of your job, or doing an exceptional job with it, etc., might be more the type of thing that will earn a better raise in that company.

But…I don't know much/anything about bigger firms, let alone auditing, so these are just general observations, nothing specific to what you're looking at. (My accounting experience is in a firm of 2-3 people, myself included, and none of us at hte moment are CPAs…so the best I can offer is general business observations!)

[evesocal]

At my firm the % raise is 0. Getting your license is viewed as an expected part of your career.

We are in the Los Angeles area, about 35 employees total (professional, admin, etc.), if you want a reference as to the size. There are a number of professionals who are not CPAs and there are many who are. Those who are not are encouraged, by the firm, to get their license. But if they don't – and some have tried and failed to pass the test – nothing happens.

Getting licensed gives you prestige at the firm and makes you more marketable.

B: 75

A: 77

R: 80

F: 81

Ethics: 83, 92 and done!

Licensed in California

B: 75
R: 80
A: 77
F: 81
Ethics: 84, 92 and done!
Licensed in California

[foreverstudying]

I'll be working at a regional firm in NJ and they provide a bonus instead of a raise.

FAR - 70, 83
REG - 82
BEC - 78
AUD - 76

[Amay]

At my firm getting your CPA does not necessarily mean you get a raise, however it is supposedly considered when evaluating you when you are up for promotions, etc. However they do have an incentive program where they will pay up to a certain amount for your study materials and give you a small bonus if you pass within a certain period of time….so gotta take those things into account as well.

If I were you, I would approach HR at your firm like I did at mine and just state you were curious as to what their policy is regarding obtaining your CPA license and compensation…just because you wanted to know what to expect come raise time.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[evesocal]

I guess I should add, the firm paid part of the cost for my review classes and they paid for the license application and my dues for the AICPA and CalCPA.

Although getting licensed is appreciated, our compensation relates more to billable hours than to anything else.

B: 75
R: 80
A: 77
F: 81
Ethics: 84, 92 and done!
Licensed in California

[FearTheBeard]

@Elisabeth

I wouldn't say that my firm doesn't value a CPA license…they just don't let some employees go, even if they've been seniors for 5+ years. The firm pushes everyone to be licensed, because then they can charge clients a bit more for our services…

@evesocal

I don't understand what you're trying to say in your first post…that I shouldn't ask for a raise during compensation discussions? I assume I'll be promoted to an experienced staff, and that the firm will bill clients more for my work (a licensed & experienced staff costs more than an unlicensed staff). Not to mention the fact that they're gonna give me more responsibilities. In terms of billable hours, I'm meeting all their expectations.

@Yama1317

My firm didn't pay for study materials or exam fees. Paid it all on my own.

Does anyone think asking for a 10% raise is ridiculous? I consider ~$60k a year reasonable, especially for the area I live in. Remember, they started me at ~$55k when I hadn't finished the exam and only had a few months of accounting experience.

[evesocal]

FearTheBeard: I'm not saying don't ask for a raise. I'm only saying it depends on the firm. In some (like mine) getting licensed doesn't really enter into our compensation. Maybe it your firm, it does. I don't think there is any across-the-board policy about this or an average amount of a raise based on passing the exam.

We get raises (or not) once per year. They are based on experience, effort, the economy – and yes, the license matters, education matters but the license alone doesn't give any of us an automatic raise. But that's the culture where I work and it could be entirely different where you work.

I don't think you're crazy to ask for 10%. What's the worst that can happen? Good luck to you. 🙂

Licensed in California

May 2013

B: 75
R: 80
A: 77
F: 81
Ethics: 84, 92 and done!
Licensed in California

[number_cruncher_24]

When I worked in public accounting, we did not get a raise when we passed the CPA exam, but they did give us a bonus. Having passed the CPA exam helped you to get promoted faster, too.

[number_cruncher_24]

When I worked in public accounting, we did not get a raise when we passed the CPA exam, but they did give us a bonus. Having passed the CPA exam helped you to get promoted faster, too.

[Author]

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