[DownInTheHoller]

Just wanted to get some honest feedback on what is reasonable for someone in my situation. I graduated with a masters degree in accounting about a year ago and have almost a year of experience working in a local CPA firm with about 10 employees. There is one owner – no partners. I was by no means a great student but did enough to get by and did alright. I passed all of the CPA exams a few months ago and am waiting for state board to approve license. I am not in a major metropolitan area, but the city I live in has over 100k people. This is my first true public accounting job.

I am not a genius and accounting work is something that hasn’t necessarily come naturally, but I am learning. I am currently paid $25 per hour with overtime at 1.5x. Is this normal? A little low? Please share any thoughts. Thanks.

[DocJ]

So you make over $50,000 with only “almost” a year of experience and no CPA license just yet.

Honestly, that doesn't sound too unreasonable to me. In a bigger city or bigger firm, yeah I can see you making more (though with cost of living, it might technically not be more). But in your current position, that doesn't sound too unreasonable. What exactly is your job title? Given your experience, I'm assuming it's Staff Accountant or something similar. $50K is actually right around average for that job.

Of course, if you feel you're being low-balled, then get job hunting. You have a Masters and are a soon-to-be CPA. That's pretty high demand, like C-suite level education right there. Quit messing around here and get hunting!

[LuckyGuy292]

Completely subjective, but seems reasonable. Pass further review.

[vbmer]

I suggest looking up average starting salaries for your MSA program to give you a better idea of prevailing salaries for your peers. Also, even if you are paid hourly, as you are likely putting in a lot of overtime during busy season, an annual figure would be better for comparison to your salaried peers. I believe first-year salaries for MSA grads from my alma mater are just over 70k, but they are salaried in big cities, mostly at Big 4, sometimes even not in audit/tax, which skews it higher. So 50k + overtime at a small firm seems fair.

[Recked]

Seems pretty fair to me. Learn as much as you can, as fast as you can.
People aren't paying for a body in a chair, they are paying for production.
The more you know, the more they can charge for your time, and then more they can pay you.
–
RobertHalf has a finance and accounting salary guide. If your city is 100k large they might even have your local area in the online search database.

[Wingdings]

That seems perfectly reasonable! It may even be slightly better compared to the salaried equivalent at times ($50k ish). I work at a similar sized firm in a similar sized town and associates genearlly start at $55k. The benefit of being salaried is PTO, whereas your time off is money lost. The other side of that is you get time and a half when you work over 40hrs in a week (most states I think) So it likely balances out. I'd expect a 3-10% increase in pay the first year and each year after. Generally firms do not give a raise for being licensed, sometimes an ok bonus but rarely if ever a raise. The saying goes “You don't get a raise when you get your CPA, you get a raise when you get your CPA and leave public.”

[74phoenix]

Fair to me!

Graduated 05/2016.
NY CPA Candidate.
Public accounting.
FAR COMING UP 07/07/2016 !! GOD HELP ME.

[74phoenix]

FYI big bucks are in Big 4 accounting, industry management positions, or whenever you get to a manager role in accounting. Stick with it

Graduated 05/2016.
NY CPA Candidate.
Public accounting.
FAR COMING UP 07/07/2016 !! GOD HELP ME.

[vbmer]

@74phoenix, sadly, there are no “big bucks” in Big 4 accounting except at Partner. Accountants generally earn between 1/3 to 1/2 less than consultants at Big 4 firms.

[LuckyGuy292]

@74phoenix big bucks in big 4? lol… might want to do some research on that…

[NYSCPA]

Seems reasonable for position and locale. Where you have to “earn it” is the 1.5x OT, assuming there is enough work, live there during tax season. There is no such thing as “big bucks” at the Big 4 until you reach Manager or Partner Level. Before that, while your base may be decent for your position and locale, relatively speaking, your hourly is going to be absolute trash.

[Author]

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