CPA license doesn't seem worth it any more

Mostly a rant....

I spent 5 years in public accounting before moving to industry. I never had the time to study for the twice a year CPA exam due to working 70 hour weeks in the tax department through April 15th and again through October 15th (for extensions). That was always their excuse for crappy raises and little or no bonuses for the time and effort I put into the job.

I moved to a finance department of a company and no longer do debits and credits. I deal with public finance (i.e. bonds) and financing structures, cash flows, etc. However, my employer insisted that I go get my CPA license. So far, I've passed AUD with a 94 and BEC with an

84 and am taking the remaining two sections this month and in February. I don't anticipate any problems passing the remaining two as I've been studying diligently.

My beef is this, my current employer is requiring me to get the license, but hasn't stated if there will be a bonus, pay raise, promotion, etc. The CPA license or being a CPA candidate was not a requirement when I took this position. Thus far, I've logged well over

350 hours of preparation for these exams, three hours or more a night and 8 hours on Saturday and another 4 or so on Sunday. Not much of a life other than that. Apparently this method works well. After all is said and done, I will probably have over 500 hours in this certificate, excluding the ethics exam and the remaining hassle of registration, licensure, etc. And apparently all for nothing. Even a crappy $2,000 bonus won't yield much more than $3/hour for my time.

In any case, it's caused me to be a little burnt out at work, being miserable most of the time, etc. All for a lousy $50,000 salary. Oh, I have an undergraduate degree and a masters in taxation.

I am willing to work hard, and my current and prior employers knew this (the former employer took too much advantage of this so I left). My current employer thinks highly of me and my efforts (and I get along great with him), but, being a CPA, he is a stingy tightwad asshole when it comes to spreading the wealth.

Deals that we work on (where I typically perform the analysis, review documents, schedules, etc.) generate a bonus for him big enough to pay cash for a new luxury car every time we close a deal. My bonus? Hahahahaha.

In any case, I now have been out of school for 6 years and I'm getting sick of the lousy pay in the accounting finance fields and can't seem to find these magic jobs that pay well. There are people in this company with NO COLLEGE DEGREE (much less a designation such as CPA) who make close to six figures, WITH THE WORK ETHIC OF A WAL-MART GREETER!

WTF? I know this rant is entirely short-sided (seeing as how everyone has been telling me and nagging me to get this stupid license for the past 6 years) and it's supposed to have all of these benefits down the road. Sorry, just can't see that right now. Not after working for CPA after CPA who refuse to promote/pay well no matter how hard you work.

In any case, after I receive my scores and get licensed, if they are not willing to make changes, I will be.

Any suggestions? Are there actually CPA firms that pay well?

Reply to
jo_jo
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You've got 20+ years of work ahead of you, and many more opportunities - either with your employer - or with other employers down the road. Get a little more far sighted and you'll surely see the benefits.

Reply to
Paul Thomas

....

  1. Supply and demand determine what you earn.

  1. If the owner (the fellow who owns the job and can determine who he will allow to fill it) wants a fill with a CPA licensee, then that is a condition of employment. I think that is an issue beyond your control (haven't read anything on current labor cases for years), you have to make the decision to follow the rules or leave.

  2. If you have the client list a CPA license can be very valuable. If you don't have a client list it is just an ego bauble. (That is where we who have do that extremely childish and immature little song and dance in our heads while never actually saying out loud, "nya nya nya, I've got mine and you don't have yours, nya, nya, nya....").

  1. The CPA's value is determined by the need of businesses, especially those with absentee owners. Since the businesses and their ownership has been going rapidly off shore, I can't see how the situation is going to improve. All of the public accountants I know are little better than public bookkeepers and tax preparers. I only know of a few outside the regional and national firms that do anything like old time, traditional, requires a CPA type work.

  2. Those who prosper are those who can cope with the current reality.

  1. Things have changed and they will continue to change. The savings rate has been zero for some time. I will leave you to make your own predictions.

Reply to
Ron Todd

There are companies that pay better, just keep looking. If you have only been in working world for six years you have plenty of time to increase the income. If you stay in accounting or the financial end the CPA will be worth it.

Reply to
Steve

Thanks for all the comments.

I was especially frusterated today when it took me two hours to register for the parts of the CPA exam because NASBA's web site does not work correctly. I know the CPA exam was tough when you took it all at once, as I did that twice, both times with less than three weeks time to prepare. But it seems the hardest part about it now is registering. Initial registration, registering for specific parts, paying the state board, paying the state board again, then paying prometrics. Then, on top of that, another $150 for the ethics. All this while others are enjoying their nights and evenings with their comfortable salaries and their SINGLE UNDERGRADUATE DEGREE.

I just hope to God that there is a happy ending to this. I've been banging my head against the wall for six years (I know, not a long time to many of you) and it seems like I end up with employers who have double standards and pay people who don't work and work people they don't pay.

Anyways, I'm mainly miffed because of the lack of incentives to get this done (even though I'm doing it now because I'm sick of people nagging me about it).

1) My employer did NOT require it when I signed on. Now he does. This constitutes a change in their policy. Oh well. To me, it just seems like another excuse in a long line of "we'd pay you more but you need to do X".

2) I love the work. I know it doesn't sound like it from my posts, but I do. I loved the public accounting work, I just couldn't stand working for jerks. I now enjoy financial analysis much more. Just wish it did a better job of putting food on the table.

Anyways, like I said, mostly a rant because I've been studying/testing since August 2005 and I'm ready to have my freaking life back.

Reply to
jo_jo

I am not an accountant.

I think your employer is doing you a favor -- maybe not intentionally, but a favor nonetheless. By forcing you to become a CPA as a condition of employment, you have to bite the bullet and go ahead and do it. Otherwise, you would be doing nothing about that.

And, so what if by giving you a $2,000 raise, it only ends up amounting to about $3.00 an hour for the time you put in to become a CPA? For one thing, the $2,000 raise is an annual increase -- so you get the $2,000+ every year for the next 2, 3, 5, 10 years. But you only had to put in the hours once.

And, if your employer didn't make you do this, 5 years from now you would be 5 years older. But, by making you do this, 5 years from now you will still be 5 years older, but you will be a CPA, and you will have at least $10,000 more in your pocket.

Go back and read your posts and your negative comments about your employer, and how you won't be getting a big enough raise, etc. Then imagine that you were an employer. Would you want someone working for you that was so disgruntled?

And, yes, you have access to the employer's finances and you can see your boss getting big bonuses, etc. So what? If you want to be an employer, you could be one. You could buy or start a company and pay yourself and everyone else whatever you think you and they deserve. Or, because you will be a CPA, you can be self-employed and be your own boss.

jo_jo wrote:

Reply to
Jay21

If I was an employer and wanted to maintain decent talent, I wold compensate them for the time they put into acquiring a license such as this. But that's just me. I tend to be less of an asshole than most.

Reply to
jo_jo

employers make people pass exams so they can weed out the dumbasses who cannot pass them. it's as simple as that. the exam itself is worthless, and many dumbasses do pass them. however, you have to be a real nitwit to fail, and no employer wants to keep such a nitwit around.

Reply to
mrs. eliza humperdink

designation such as CPA) who make close to six figures, WITH THE WORK ETHIC OF A WAL-MART GREETER!

Reply to
Meyer1228

The jobs I was referring to were in operations, not accounting. Not nearly as much technical knowledge required in accounting, I just think that the guy over that department thinks about salaries differently than the boss I have (as well as the past bosses at past jobs). Seriously, there's a lady in that department who works MAYBE 30 hours a week, she's been with the company for about 8 years, and makes close to

6 figures with no college degree whatsoever. I have no IDEA how you get a job like that.
Reply to
jo_jo

It helps to acquire friends and acquaintances who can help you.

  1. Have you ever seen a picture of David Rockefeller's rollidex?
  2. Have you read that little paragraph in Richard Bolles's book?
Reply to
Ron Todd
  1. No, and
  2. No

What's the title of the book?

Reply to
jo_jo

"close to six figures" is very low. Think about it. If you make $90K, after fed & state taxes, medical, and SS deductions, you are down to $48K. That comes to $4 K per month take-home. You pay the mortgage and car insurance, what do you have left?

Reply to
mrs. eliza humperdink

No state taxes here, so it comes out to around $5,400 take home a month.

Reply to
jo_jo

My life. My family of four makes it on less than $4k per month take-home (about $3k), and we have a mortgage and car insurance. We can't afford a

*lot* of extras, but we aren't complaining. We just make choices. Either we fund our retirement accounts (which we do), or college funds for our children. Cannot do both. We live in NJ where your average house costs $350,000 (we bought ours in 1988 and have stayed put). We have a state income tax, and property taxes are outrageous. We choose not to take all our home equity and move up to that big house, and we drive older, but paid for, cars. I wish I did get that college degree, and I plan to go back to school next year. But - my daughter's high school guidance counselor told the incoming freshmen class that only 13% of Americans have a degree (I'm sure that's higher in NJ.) So the woman who makes more than the accountant just got lucky, I guess?
Reply to
Meyer1228

"Meyer1228" wrote

Nor may you want to. Your child may find that it's easier to qualify for student loans, grants, scholorships and the like because many are needs based. Having $50,000 set aside (in her name) only makes the school inform you that her money must be used before any student aid is available.

Not at all. There are many business owners without degrees that own a very sucessful business, who hire college grads to work for much less than the owner takes home.

Reply to
Paul Thomas, CPA

About $3K. If you're really having such a hard time getting by on $4,000 per month you seriously need to get help with your personal finances, and quit driving before you get yourself or someone else killed. Even after the gummint gets their cut, $90K per year is comfortable living.

Reply to
Gregory L. Hansen

you might live OK for now, but you are living dangerously. if you get sick and can't work, you lose the house just like that!

Reply to
mrs. eliza humperdink

true, how much you make has nothing to do with having a degree. in fact, small business owners (and large business owners for that matter) are usually the richest guys in town. the college grads do their taxes and work for them.

as for not having any college savings, how does it feel to go through life just skimping by, always knowing that you don't quite have enough, that you have to borrow to buy a house, a car, or an education?

Reply to
mrs. eliza humperdink

"mrs. eliza humperdink" wrote

What I'm saying is, that it may not always be ideal to save it in an UGMA or UTMA account (in the child's name) as that amount must be used for college (if the kid goes) tuitions before any student aid flows your way. If you think you might want student aid, and who doesn't want free or cheap money, keep any savings in your name. A much smaller fraction of your assets are expected to be used for your child's education.

Reply to
Paul Thomas

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