[itooshallpass]

I just got my CPA license this week (hooray!) and wondering if I should expect or ask for a raise… would love to hear some input.
I have just over a year of experience, in public. Less than ten people in the firm, in a high cost area. I’ve been looking at other jobs outside of the area, out of curiosity, and my salary is at the lower end for CPA positions with 1-2 years of experience. I feel like I deserve a raise since they will be making more off my work, but asking for one is basically my personal nightmare. I’ve been thinking that I should bring it up in my year-end evaluation meeting if the partners don’t, but I’m not sure. Any advice from someone with some more years under their belt?
Thanks

[Anonymous]

Definitely. I've gotten one every single time i've asked for one. Say you'd like to open a conversation about your conversation. When it happens explain why you think you deserve one. See what they say. Come in a number in mind that's higher than what you would be OK with. Tell them that when they ask what you would like. They'll counter lower. Then you can either accept, counter the counter, or hold firm at the number you want. Not something to be afraid of. Should look forward to it. It's what you did the work for.

[Throwaway]

Posting off a throwaway account since I work at a small firm (never can be too careful).
I recently got a big raise. A little bit of background on how I did it: I've been working there for 10 months (1st job). I recently passed the exams and will be licensed this month. I was making $55,000 a year in a low COL area. Got an offer for around $67k (depending on OT). I resigned, and our partners asked what it would take to get me to stay. I told them the other offer was for 73-75k and they would have to beat that. They came back with $72k base + 6-7k bonus with at least 6 guaranteed.
I know that I was very efficient in comparison to my peers. I worked up my billings and figured that from January-April, I billed out for just under $250k and about $100k from May-September. We're tax only, so much busier in the spring.
I think licensing is big, but you have to know where you stand in comparison to your peers or someone they could hire off the street. Getting another job offer is the best way to get a big raise, but you must be willing to actually walk if they don't match.

[Painted_Jeans]

@Throwaway daaaaaym! thats awesome! and i'm sitting over here worrying if i'll be able to get a job in new state after passing the exam.. i have same amount of experience but in audit plus masters will be finished in dec plus exams (hopefully) passed by end of spring..
Thanks for sharing!

[RyonT]

If you feel you deserve the raise, then by all means bring it up. Passing the exams makes you more valuable, and you deserve a bit more. And @throwaway, your experience mirrors mine almost exactly. I was able to leverage an offer in to a 46% raise. I was offered 20% more plus up to 10% bonus. This job was in the town I live in (3 min drive) where as my current commute is 44 miles 1 way. My boss agreed to match, but I countered saying the fuel/wear and tear on my car was an issue. He agreed immediately. He also gave me an extra week of vacation.

[Anonymous]

@Itooshallpass Definitely ask for raise! I agree with everyone. Time to leverage that license you've worked so hard for! Quick question – did you get your last passing score in Q2 or Q3?

[Recked]

If you never ask, you never get it. Go for it.
And to @Throwaway. $350k in billings from Jan-Sept is impressive. I think even at 72+6 plus benefits, etc they are still getting one hell of a deal. Depending on your realization rates your cost to them is probably less than a third of your gross. All very impressive given this is your first job with only 10 months experience. Your future looks bright.

[jeff]

What are they billing you out at now that you're licensed vs your old rate?

What was their previous margin on your time (excluding tax and benefits, since they are static) vs now?

[Sandy]

How about for a graduate student who just starts looking for a job with passing CPA score?
What's the start salary to negotiate with the firm?
What's the best strategy to negotiate?

[WarEagle]

You should at least ask. I went through something similar when I obtained my license earlier this year, except I work in the private sector. My previous employer seriously underpaid me (around $51k). When I got my CPA license I asked for a raise and was told no. They stated I was being paid fairly according to the market. So I went and found a job elsewhere that offered just under $70k.

I feel that I could've gotten more at a larger company, but the culture and work/life balance at this company are fantastic, so I don't regret my decision. Anyway, if I didn't ask for a raise, I wouldn't have known that they thought I was “paid fairly” and I would've been underpaid for who knows how long. Instead I was able to look elsewhere and get a 30%-40% increase. An added bonus, the week after I left my previous employer, the CEO announced a workforce reduction that surprised everyone. So the timing couldn't have been better.

[jeff]

Read the book “Never Split the Difference” before you ask for your raise. It’s one of my top-7 business books.

[Skynet]

So what are the other 6 top business books Jeff?

[Throwaway]

@Recked, thanks!!! I should add that I work at somewhat of a boutique firm with a lot of oil and high-net worth clients, so the rates are probably higher than what they would be elsewhere. My billing rate is sitting at $275 right now, most of our first-year associates sit at around $150. But most of the jobs I'm working on I can do in about half the time of prior year, so I guess it works out similarly. I know they are still getting a good deal, but I feel like its fair since it's more than I could make most places. I did tell them as part of the condition of staying, I needed to be able to take on my own clients this upcoming tax season- which they said wouldn't be a problem. As it stands now, I only have one client group that I know would follow me- and they're roughly $20k/yr. I'd for sure like to work there long enough to get that number up.

[Painted_Jeans]

Talks at Google with the author of the book Jeff posted.. if anyone is interested

[Author]

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