[AndreA]

How to make 120,000 + as a CPA? How much experience should I have in public/private? I would appreciate any career advice from people with experience (how long did it take and what would you do now to have that kind of salary)

[Daisy]

Based on my experience, it seems like that's the standard Director-level salary at a large public corporation or Controller position at a smaller (but still big) private company. Directors were almost always ex-big 4 managers – probably about 5-7 years in public accounting.

[bigstakk]

$120k is about standard for a manager/assistant controller position. It takes about 5-9yrs to get to that range depending on your path. I got to that range as an assistant controller about 8yrs into my career without a CPA, but I have a Masters. I likely would have been there earlier with a CPA and if I moved around a bit since I’ve been at the same company for 9yrs after public. I have just under 3yrs of public experience at a mid sized top 15 national CPA firm (not big 4) and been in private ever since working for a mid sized private company. I’m currently 12yrs into my career and a VP, Controller making decent money and plan to complete my CPA and position myself for a CFO role in the $250k+ range. I know more experienced CFOs at mid sized private companies making in the $350-500k range for reference.

A CPA really only comes into play several years into your career as you look to make manager (required in public but not in private). Experience is more important before then. There are plenty of sweat shops that will pay you extra money to work shitty hours (65-70/week), so as a senior accountant with OT you could pull in $100k in under 5yrs. That’s not something I was ever willing to do since I value work life balance more than an extra $20k.

In short, from my experience with 3yrs of public and 3yrs of private and a CPA you should easily be able to get an manager level position in the $120k range. It’s a good goal initially but as you get married and have kids $120k isn’t much and you should aim to make over $200k to really be able to truly afford a mortgage, kids, vacations. I’m from SoCal so cost of living is relative though.

Good luck.

[AndreA]

Daisy, I would expect to get 160+ with 5+ years in public (big 4)

[AndreA]

Bigstakk, your story is exactly what I've been thinking about… 120+ is not enough you right, but what I love about accounting that we have a great opportunity to become a CFO and make 200+ I know it's not easy, because it's not just accounting, but I believe it's very doable. 120+ should be enough to start budgeting my life, my plan is to save as much money as I can, make 30-40% down payment for house, drive cheap car, pay off mortgage as fast as I can and live my life without leases, mortgages, credit cards (don't buy too much house, expensive car), I have 5 years experience in banking and worked with so many different clients and life is difficult for people who doesn't know how to budget their expenses. Thank you very much for your story! Best of luck to achieve the goal! I'm sure you gonna be there very soon.

[MaLoTu]

It will really depend on where you are located.
I am in the SF Bay Area and don’t see it being a high possibility to make $160k anywhere with 5-7 years experience. However, that isn’t saying that you can’t. It would likely not be in in public accounting and you would probably have to leave your job for a new one every 2 years or so. This would be the most ‘traditional’ path for lack of a better phrase.
With that said I think that you should easily be able to make $120 within 5 years with the right career moves. I would suggest to stay in public for 4 years and exit as a manager in industry.

[bigstakk]

Yeah I would not expect to get $160K+ with only 5yrs of public experience. At that point in public you would either be an experienced senior or a first year manager. First year managers at big 4 make around $110k. In private you could parley 5yrs in public to a manager/asst. controller role and make slightly more, but there really isn't a realistic scenario where with just 5yrs of experience you are making $160K+ regardless of the moves you make.

I will say more than anything, even work experience, often times personality, cultural fit, politics and some degree of luck (key personnel departures) can be even bigger factors than credentials alone. I know many people that have quality experience and with a CPA, but just don't have the make up to lead a team or communication skills to be able to interact with senior management and that is far more likely to dictate your career upside. It's very easy to get stuck as a senior accountant of accounting manager for those reasons alone. Keep that in mind and try to build on these qualitative skill sets in addition to the required technical aspects.

[Pork Flavored Bacon]

I'll tell you what is possible: making $80k as a Senior CPA with three years of experience in Chicago.

FAR - 75 | REG - 87 | AUD - 82 | LAW - 81

[AndreA]

Thank you for the good advices! Now I know what to expect and how to prepare myself. I live in Los Angeles and that's why I thought with 5 years in BIG 4 it's possible to get 160+, but I was wrong.

[bigstakk]

FYI -I live in LA too. Seems like you are headed in the right direction. It’s a grind early on, but you will get there!

[KeepPushing]

QUESTION: When you all say having “public accounting” experience before transferring to a controller or director job, does it have to be in audit or tax? my career goal is to become controller or CFO, or similar, but currently doing TAX in public. To obtain that goal do i need to be in audit? or can tax experience in public get me there??

[bigstakk]

Audit. The path for public tax experience on the private side is Tax Manager or Director reporting to a CFO. To be a Controller or CFO you will need audit experience to check all of the boxes of desired work experience.

[Recked]

Here is an article I stumbled upon this weekend from 2017 Journal of Accountancy. Thought it might be relevant to the discussion.
https://www.journalofaccountancy.com/news/2017/sep/cpa-average-salary-201717483.html

[Author]

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