[jnnthom]

I’ve tried asking people how much they make or what I should expect as an entry level accountant. I recently started working for a small firm doing various tasks from simple bookkeeping, to taxes, and consultation. I like the job and they’re very supportive about me sitting for exams. The firm will pay for my licensing fee, but that’s it. There’s no bonus for passing all the exams or a promise to a bump in pay. I did the math and I’ve realized I’ll be making around $25k a year (before taxes) with no benefits. That seems really low for the type of work I’m doing. I plan on being licensed by next spring. I signed a two year non-compete, because I need a job so desperately. Given that I have no prior experience in accounting, is this a fair wage or should I plan on doing my two years and working else where? What have others experienced as their first job in accounting?

[PrinceofDubtown]

I don't know where you live, but yeah: your pay is way low for somebody with a CPA license. Unfortunately, it seems like your employer realized this as they made you sign a non-compete (that's really rare for entry level employees).

I would take the time they're giving you to pass the exam, research the market salaries for new CPAs in your area, and ask for a pay bump once you pass. If they balk, I'd start looking for new jobs: it's unlikely they're going to take you to court over a non-compete at your current salary as the legal fees alone would probably exceed the benefits they'd receive in terms of damages. In any case, non-competes are often very difficult to enforce depending upon your state (I know in California they are practically non-enforceable). At any rate, your pay is way too low and even if you did have to pay something the benefits of a more competitive salary likely outweigh any costs.

It might be worth paying a lawyer for a couple hours of their time once you pass the exam to talk all this through with you.

FAR - 92 (7/13)
AUD - 98 (10/13)
REG - 92 (7/14)
BEC - 95 (8/14)

[mla1169]

That's about $12/hr. way too low for a degreed professional unless there was some type of misunderstanding and you are actually on an internship. In that case you're doing it more for the experience than the salary.

You can easily find another job that is not considered competing with your current firm. Doesn't mean you have no options. But definately do your homework, the time to ask such questions is before you accept a position.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[vartex]

That's way too low. My first job in public accounting (fresh out of college without an accounting degree) paid me $68,000 + bonus. I had no idea what I was doing at work every day and it took a while to get the hang of it all.

I swear I read the weirdest stories/scenarios on this forum. I picture most of the guys as hillbillies living out in the country.

[jnnthom]

I knew something was up when they said the turnover for that position was 2-3 years (as long as the non-compete). But given the fact I needed a job and no one else was hiring, I was left with little choice. Thanks for the advice to speak with a lawyer. My step-father-in-law is a retired attorney. My concern with that is would it look bad to other prospective employers if I broke that contract? Or would they be understanding? And its not an internship. They said they'd like someone to be in that position for many years. They also said I'd get a pay raise in the future. What I'm concerned about is if it will be a significant raise. I was in the military for four years and I'm not making any where near what I was bring home when I was 22. I'm feeling extremely frustrated. I didn't go to school and pay thousands for a study guide and exam fees to be making less than when I didn't have a degree or license.

This can't be a good sign. I only started two weeks ago.

[mla1169]

You're not understanding a non compete at all. You can leave your employer at any time. For a period of 2 years after you leave (whether it's tomorrow or in 10 years) you've agreed not to go work for a direct competitor of theirs. It's so you can't take their clients with you. You didn't agree to stay there for 2 years LOL! If you do leave just make sure you're not going to their competition and never EVER tell a client of theirs where you are going.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[so1913]

New job ASAP!

AUD - 90 Pass
REG - 70,61,81 Pass DONE DONE DOOOOONNEEE!!!!!!!!
BEC - 79 - Pass
FAR - 70,82 - Pass

[Anonymous]

I get paid about the same thing, and do similar work…actually get paid a bit less, but am probably in an area with a lower cost of living. It sucks. I just did the figures the other day, and adjusting national averages for my wages in order to compensate for the cost of living, I'm still just paid about 67% of the low end for a position like mine. 😐 And that's not counting the CPA aspect!

But…here's how I try to look at it. I hope to be a CPA by the end of the year, but I'm not yet, and I couldn't be a CPA without the experience I'm getting here. So my plan right now is to keep quiet about pay till I am a certified CPA, or at least till I have completely filled the experience requirement (reallllly hoping the exams don't drag out too long beyond that, but still waiting on my first score!) and then enter negotiations. I really like this job, but I have to be paid a reasonable amount for it, so we'll see at that point whether or not I can get the pay I require. However, for now, I'm really trying to focus on the experience I'm getting. It's not an internship, but if I think of it as one, then I feel better about it!

And your non-compete is better than mine. The non-compete I signed requires that I not work for an employer who services any former clients of my current employer, for 2 years after I leave my current employer. So, if my current employer pisses off a client who comes to my new employer, am I supposed to quit, or expect my boss to turn away the client? 😐 I need to look into the enforceability of non-competes in my area, and perhaps discuss with my boss the terminology and whether or not it's appropriate. The good news is that my boss (who is the owner – very small firm) is usually quite happy to discuss things with me, and I actually helped him draft the confidentiality agreement, so I might convince him to change the wording of the non-compete… But like you said, this was the only job hiring at the time. And…I'd actually been employed here about 4-5 months before he found his non-compete for me to sign. Bit late to decide I didn't like the wording in it…!

[jvcpa]

That is way. Too. Low. Part of taking a job is negotiating salary, and it looks like the employer came out on the better side of that negotiation. Maybe I missed it, but are you working directly under a CPA? If so, I could see that aspect being the sole benefit as the CPA will be able to sign off on your work experience. If you're not working for a CPA, I don't see any benefit in staying any longer than necessary. Keep looking for jobs and network within your jurisdiction's CPA society.

Passed: R-F-B-A - Persistence is the key to passing.

[Anonymous]

Just a heads-up some states don't require you to work directly for a CPA. In KY, all you have to do is have a CPA sign off on it. So, no one in my firm is a CPA, but my boss's former partner is and still keeps in touch with us all, so he's going to sign off on my experience.

[Texas CPA]

I work for a municipal water company and we start our staff accountants at around $45,000 depending on experience. Plus, we have excellent benefits and a defined benefit pension.

Depending on your state, most non-competes are unenforceable against lower level employees. Non-competes are usually designed for higher level executives.

One area I ran into a problem with was Robert Half. I was in their professional program where you actually worked for Robert Half and you got paid whether you were on assignment or not. Just about every client I worked for wanted to hire me full time but they had a high buy-out for the client. It was something like 25% of my pay.

My advice, put your head down, get experience, do a good job, get your CPA license and the good jobs will come on their own. Make sure to get involved in your local community and get job contacts. Almost every job I ever got it was because I knew someone.

Reg - Passed 82 Nov 2012 - Becker
Aud - Passed 86 May 2013 - Becker
BEC - Passed 88 Aug 2013 - Becker
FAR - Passed 88 Nov 2013 - Becker

https://www.becker.com/cpa-review

Texas CPA

[Anonymous]

I think the pay is a bit low for bookkeeping…however….if you are getting some good experience and like the job than it's ok. Typically, it is easiest to make more money by switching jobs than getting a big raise at current job esp at small firms.

In the long run, I think more accountants need bookkeeping, sales tax, and payroll taxes experience. It really gives a great background to accounting than you would not get at a larger firm. I have had senior managers ask me before what the FICA rate is. If you do the actual accounting work for 2 years, you will be more likely to understand client issues. I'd rather have low pay and ask lots of questions…then move on…when you are a little more knowledgable in the field.

I've been in public accounting for 13 years and have managed to get promoted without a CPA license by working at a small firm. My firm doesn't offer any incentives for taking the exam which does bother me at times. However, I work less overtime than some of my friends who received CPA benefits.

[Anonymous]

I think the pay is a bit low for bookkeeping…however….if you are getting some good experience and like the job than it's ok. Typically, it is easiest to make more money by switching jobs than getting a big raise at current job esp at small firms.

In the long run, I think more accountants need bookkeeping, sales tax, and payroll taxes experience. It really gives a great background to accounting than you would not get at a larger firm. I have had senior managers ask me before what the FICA rate is. If you do the actual accounting work for 2 years, you will be more likely to understand client issues. I'd rather have low pay and ask lots of questions…then move on…when you are a little more knowledgable in the field.

I've been in public accounting for 13 years and have managed to get promoted without a CPA license by working at a small firm. My firm doesn't offer any incentives for taking the exam which does bother me at times. However, I work less overtime than some of my friends who received CPA benefits.

[Pippy Longstocking 93105]

IMHO way to low a salary.

Look for another firm, underpayment means you're not working for a firm that wants you as a team member.

Don't even worry about a lawsuit, and don't spend any money on a lawyer either. You can represent yourself if you need to, but its unlikely. If they want to flush money down the toilet and try to enforce it, let them. Maybe they can find a $15/Hr atty? Not that it would ever make it to trial, but if it did you could have a field day with them.

It sounds to me like this is “Lawyer Talk” as Peter Olinto would say. In the 9th district (CA), those non competition clauses apply only when there are trade secrets, and even then only in a very limited geographic area.

Passed all 4
Done!
If I can pass, you can too!

[OnmywaytoCPA]

When I first graduated with my undergraduate degree. It was diffucult to find a job as well. I got a job at a small CPA firm making $30,000 a year. Then after a year, I got health benefits. Two years later, I got another job as an accountant for a school district making $47,000 a year with health, dental and vision with no charge to me all. My employer covered the health care 100%. I'm making about 15% more than that now in my current job, but I wish I would have taken the CPA exam before I left the small CPA firm, because I could be making $75,000 – 90,000 a year easily, if I was certified.

In my opinion, you are not getting ripped off. You have a gold mine, in front of you. Learn all you can from the CPA/Owner of this firm. Take any and all assignment that are given. Get your two years of experience to qualify for the CPA Exam (or how many hours is needed for the state you live in). Pass the CPA Exam and I promise you, with two years of public accouting experience and a CPA designation, you will never be out of work or have a hard time looking for a job. You will be a rare find and recruiters will blow your phone off the hook. I have an MBA and there are jobs that I still don't qualify for, because I don't have my CPA Lisence. Now, I'm studying for the exam, becasue I see the doors that it can open. I'm getting calls and going on interviews for jobs that pay between $56,000 – $65,000 a year, but if I had my license I would be making close to six figures easily.

You have a very bright future, please don't get discourage, because of the pay on your current job. A wise man, once said, “Do not despise small beginnings.” Trust me, my friend, you are going places.

REG - 74, Retook 6/10/16, scored a 72 (Hate this exam)
BEC - 69, 79, 8/1/15
AUD - 83, 4/4/15
FAR - 77, 2/27/16

[jnnthom]

It seems that everyone is in agreement that it will be worth sticking it out for 2-3 years. I planned to at least get my hours signed off and learn some bookkeeping. I've heard that before where some CPAs aren't well rounded because they started off in a big firm, only working in a certain field. I looked up how my state enforces non-compete and I'm a bit surprised I had to sign one because it appears that my employers will not be able to enforce it. Non-competes for my state are for the top paid officers at the company, which is certainly not me. It will also not be enforced if it hinders the ability for the employee to gain employment else where. Being place bound in a rural area, I'd like to see them try to enforce the contract. And besides, what have I got to lose? They don't provide me with any extras and paying for health insurance out of pocket is so expensive. Even if they enforced the non-compete I think I'd be more financially stable if I worked as a cashier at Costco. I would just make sure my name tag had “CPA” on it 😉

[Author]

Replies