[memmy29]

I’ve been a staff auditor at a Higher Education Internal Audit Office for two years and I received my CPA license last month. My supervisor told me in my performance evaluation that he would “do what he could” to get me some monetary recognition for receiving my license, but it is not required for me to be promoted.

I currently make 45K, and am waiting for our “raise conversation”. According to the most recent industry salary guides I should be making significantly more. What would be an acceptable raise, and when will I know to negotiate?

Thanks!

AUD-84, REG-75, BEC-84, FAR-77

Licensed CPA

CIA Exam
Part 1 - Passed
Part 2 - Passed
Part 3 - Passed

[mags603]

@memmy, congrats on your CPA! now you have your CPA and work experience. You are a very strong candidate at lots of different places.

I would consider looking to apply else where. I doubt that you would get a significant raise comparable to what you could be earning as a CPA (65000 plus)

just my two cents! what do i know…

[Anonymous]

It's definitely true that it's much harder to get a significant raise than to switch to a job that pays more…unless you get a promotion, and even that can be tough. So, do you think that, say, a 10% raise would satisfy you? If you're anticipating more than that, and you aren't up for promotion, then I would consider looking elsewhere. I know that if I had that raise conversation with my boss, his response would be about the same – “I'll see what I can get for you”, and that would be the end of things. Even a 10% raise is pretty hefty if they don't feel that the credential is required, so if you're looking for much more than that, I would consider looking elsewhere. I'm going to be looking for probably 50% at least, and I'll discuss it with my boss, but I anticipate that his response will be more along the lines of “hell no” than any sort of agreement! 😛

As for the industry guidelines, I would suggest looking at this site: https://quickfacts.census.gov/qfd/states/00000.html Select your state and then your city/county and find the line “Per capita money income in the past 12 months (2011 dollars), 2007-2011”. Divide that number by the national number ($27,915) to see what the average wage comparison is for your locality vs the nation, then multiply the industry standards by that percentage, just to get a rough idea of a more local estimate. For example, in my area, the regional wages are approx 60% of national wages. So, a position that's $45-65k as a nationwide average would be about $27-39k locally. The reason I mention all of this is that it could be that you're not as underpaid as the national figures indicate…or it could be that you're worse! Of course this isn't a precise thing – you'd have to have the average accounting wages for your area to really know anything specific, but it can help to get a more accurate comparison! Because I know that if my local average for a $50k job is $30k, then in principal, someone has a $70k average to even things out!

[Anonymous]

Yea go elsewhere unless they can pay you equitably. It sounds like they may have limited funds if it is a higher education non profit? Obviously when you are billable to a client (whether its a CPA firm or a contractor on a gov or commercial cost reimbursable project) it is much easier to push through a promotion.

You should be in line for a substantial raise. You should feel free to approach your manager at any time for this discussion, especially if he has an open door policy. If your manager doesn't have your back it will be an uphill battle to get you where you should be given your professional certification and licensure. What you accomplished in earning your cpa is no small feat! If your work has a payscale chart and you are lower on that than you should be, then show him that. I wouldn't be afraid to mention the industry standard salary range for a licensed CPA with your experience level. Good luck!

[memmy29]

Thanks for the info guys. There is always the “we have a limited budget” issue to deal with, but others above me (and even staff level IT folks), make significantly more even without their CPA. The next person to me with their CPA are managers adn then Directors (no seniors even have it). My boss has indicated that after my two year mark passes (which it did in April), he would like to promote me. I would think since I am the only CPA, I should make more than the highest paid senior at least? This would require me to jump more than 15K though. I guess I'm working up my argument to him with all of these questions. Thanks for the help!

AUD-84, REG-75, BEC-84, FAR-77

Licensed CPA

CIA Exam
Part 1 - Passed
Part 2 - Passed
Part 3 - Passed

[kmaahs]

Here's the thing that I see.

If almost no one at the firm has their CPA, it doesn't appear to me that your current company values that designation very much. If they did, they would have more CPAs. If this is the case, you can hardly expect a 33% raise just because you have a license now.

To reiterate what others have said, it might be time to start looking for a move.

Lots of places value your credentials and will be more than happy to compensate you for it.

C.P.A.

[memmy29]

True. A 30% raise just for the license would be a bit much. However, what I think is going to be offered is a promotion to senior. I just am unsure what kind of increase I should be asking for with the promotion + my new license.

AUD-84, REG-75, BEC-84, FAR-77

Licensed CPA

CIA Exam
Part 1 - Passed
Part 2 - Passed
Part 3 - Passed

[Anonymous]

If the pay range for a senior in your firm suits what you're looking for, then you're probably in good shape. My goal when going into salary discussions for a new position is to get them to list a number before I list one. If they said they planned to pay you $70k, you'd hate to have offered $60k before that! But if they say $50k then you know you've got more convincing to do.

[memmy29]

@Lilla- Thanks. So it stands to reason that I should be making at least as much as the highest paid senior who doesn't have their CPA? This will be a tough negotiation I think.

AUD-84, REG-75, BEC-84, FAR-77

Licensed CPA

CIA Exam
Part 1 - Passed
Part 2 - Passed
Part 3 - Passed

[kmaahs]

I don't see you making as much as the highest paid senior fresh off promotion strictly due to a CPA.

Public firms can bill out more for your work when you become a CPA. Thus, the license is valuable to them in a direct fashion.

In internal audit, your work is not necessarily better or inherently more valuable post CPA certification than it was before.

I am not discounting your monumental achievement in the least, don't get me wrong!

But I would not hold my breath with regards to a large CPA premium in your salary, in the situation you have described yourself as being in.

C.P.A.

[Anonymous]

@memmy29 I'd agree with kmaahs. You don't have the experience yet as a senior. When first promoted to senior, I'd anticipate a salary on the lower-end of the seniors. Maybe not the lowest paid, if your skills are superior to the person in the lowest-paid spot, but I would not anticipate being the highest paid. Because the CPA certification doesn't make you earn (or save) more dollars for them, it doesn't immediately translate to higher pay. I think it would do more for you when seeking a new job than when working at a current one, because for a new employer, it means “This person is smart enough/knows enough to pass this test”; your current employer already knows how smart you are or aren't, so since the CPA isn't required for your job, it's not probably going to mean more $$ just because you have it.

I kinda have the same situation, since my boss isn't a CPA, and we're the only two people in my firm…so, he's of course not going to see me as more valuable than himself, and therefore my CPA will not make me more valuable to him. It's a good thing to have, but won't mean more $$ here.

[memmy29]

That makes sense. I spoke with a senior auditor today. She says that promotion raises are not negotiated here, just given. Sounds like I won't have too much say in what happens. My boss is a CPA and all the directors are, so it's strange to argue that it doesn't mean “anything”, but I understand that it doesn't save or make them money in a place like this. I guess I'll have to accept that the license will be a long term investment for me, to pay off in the future and not necessarily now. This job has great flexibility though, so it's nice to have that while I'm thinking about having kids. There are definitely aspects of a job that increased pay cannot replace.

Thanks for all the insight. I love A71!

AUD-84, REG-75, BEC-84, FAR-77

Licensed CPA

CIA Exam
Part 1 - Passed
Part 2 - Passed
Part 3 - Passed

[Author]

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