[outrenthome]

Hi!

Next Monday I am going to take my third CPA exam: REG.

As I get closer and closer to becoming certified as a CPA. I wonder if this is going to be worth it. I do love tax law with all my heart and I am currently working for a small CPA firm specialized in individual and small business tax returns. I make $40,000 per year plus $3,000 bonus. I have 2 years of experience and a Master of Science in Taxation earned in 2012.

I know this may sound like a lot of money for many, but here in Dallas, TX, it is within the low class income threshold and we barely make it paycheck by paycheck. I have no retirement benefits and I can only save about $100 a month for emergencies.

Our office staff is composed of me, my boss, a new graduate hire and an office manager… that is, there is a total of four people in this office.

My boss also hired me because he is 57 years old and he wants to retire. He is not married and does not have any children so he plans to sell his CPA business to a person he can mentor for the next 5-10 years. Once he will retire, the person who will inherit the business will pay him with a note and that will essentially be his retirement check. After retirement, he also plans to visit the office often and continue to meet with the clients and collaborate with the new owner of the business. My boss said he would want me to inherit his business one day.

These are my worries. This office essentially prepares small tax returns that do not require lots of research. It also does not officially offer accounting services (we have a girl we refer the clients to in case they need accounting). The clients are mostly people who are friends of friends of my boss… and I feel like my salary will always be the same for the next 10 years, until my boss will finally decide to retire, sell me his business, and I will be left with mediocre tax experience, a client’s list that was loyal to my boss (but may not be loyal to me!) and a huge monthly bill I will owe to my boss for the note issued when I will buy his business. That means, I will only have a chance in life of buying a house when I will be well into my 40s.

The firm grosses $250,000 per year.

Should I consider jumping ship after I get my CPA exam and hope to gain more experience in a bigger firm and negotiate a higher, at least “medium class” salary with a new employer? Or do you think I should stay here forever? How much of a salary do you think I should ask?

Am I sounding too entitled? (I think this is also part of the reason why I am asking this question in this forum)

And… by the way… I am Italian. I moved here in Dallas… for the sake of love…. 8 years ago!… The issue here is that I speak with an Italian accent… I feel very conscious about it and I feel like I may not be good enough to attract customers by myself because of my accent… However everybody says I am very likable and people feel very comfortable talking with me because they say I am able to explain complex tax laws using simple words… just with an Italian accent…and in Texas… so, should I and my spouse consider moving to a more “tolerant” state in the US? If so, what city do you suggest?

Thank you so much for your help!

[acamp]

Leave.

Promises or suggestions of possible take-over years and years down the road is not something to bank on, especially while receiving low pay (although the pay might be right for the level of sophistication). Sounds like you have a tax business that can probably be replaced by software, as you mentioned these clients are loyal to your boss, are they also old? Not only might they move on when you boss leaves, they might move on due to age!

It just seems like a lot of risk for relatively low return, $250K Gross less probably $100K in salaries, and who knows what for office rent/supplies, health insurance, liability insurance, employment taxes, etc.

I'm sure your boss is relatively comfortable, pretty simple business, probably nets $100K or so–but given the amount of risk on your part (don't know what the business will look like in 10 years, don't know for certain you'd take it over, you not gaining more sophisticated and thus more marketable experience) the risk v. reward just isn't there.

Self proclaimed: Highest ratio of Replies to Others v. Posts Created on A71

California CPA - Big4 Aud Manager Alum - Private Accounting at Startups

FAR, REG and BEC with Ninja Notes + WTB Only

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[acamp]

Leave.

Promises or suggestions of possible take-over years and years down the road is not something to bank on, especially while receiving low pay (although the pay might be right for the level of sophistication). Sounds like you have a tax business that can probably be replaced by software, as you mentioned these clients are loyal to your boss, are they also old? Not only might they move on when you boss leaves, they might move on due to age!

It just seems like a lot of risk for relatively low return, $250K Gross less probably $100K in salaries, and who knows what for office rent/supplies, health insurance, liability insurance, employment taxes, etc.

I'm sure your boss is relatively comfortable, pretty simple business, probably nets $100K or so–but given the amount of risk on your part (don't know what the business will look like in 10 years, don't know for certain you'd take it over, you not gaining more sophisticated and thus more marketable experience) the risk v. reward just isn't there.

Self proclaimed: Highest ratio of Replies to Others v. Posts Created on A71

California CPA - Big4 Aud Manager Alum - Private Accounting at Startups

FAR, REG and BEC with Ninja Notes + WTB Only

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[acamp]

Also you could try and grow the business while you're boss is still there (Junior Partnership?), and I could be wrong, but I just think if the current business model does not require much research, are you in an area of tax that is shrinking at the firm level as more and more people switch to Turbo Tax and thus might require taking the business a different direction?

And nothing wrong with an Italian accent, I can understand 99% of Daniele Bolelli's podcast!

Self proclaimed: Highest ratio of Replies to Others v. Posts Created on A71

California CPA - Big4 Aud Manager Alum - Private Accounting at Startups

FAR, REG and BEC with Ninja Notes + WTB Only

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[acamp]

Also you could try and grow the business while you're boss is still there (Junior Partnership?), and I could be wrong, but I just think if the current business model does not require much research, are you in an area of tax that is shrinking at the firm level as more and more people switch to Turbo Tax and thus might require taking the business a different direction?

And nothing wrong with an Italian accent, I can understand 99% of Daniele Bolelli's podcast!

Self proclaimed: Highest ratio of Replies to Others v. Posts Created on A71

California CPA - Big4 Aud Manager Alum - Private Accounting at Startups

FAR, REG and BEC with Ninja Notes + WTB Only

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[Study Monk]

I would jump ship on good terms. You can always come back and buy the business. Don't kid yourself the mentoring mumbo jumbo won't hold if someone is willing to offer more money. The fact he is paying you 40k is a either a good indicator of his business's short comings or his greed. The greed might bite you in the ass in 10 years if another person is willing to buy the business off him for a higher price than you. If anything, him selling the business is more incentive to bring up your income so you have money to buy it.

Who says the banks will loan you money in 10 years when the next hypothetical financial crises hits if your making 40k. I am also assuming that you haven't seen his books. He might not be that profitable and/or his “friends” may leave in 10 years. The business might be worth crap in 10 years. TurboTax Fortune 500 or simpler returns?

You could probably be a partner at another firm in 10/15 years. 10 years in tax at a bigger firm might give you a larger salary than his business in the same amount of time. You could also create your own business in 10 years and have contacts and a stronger resume to bring clients in if you leave to a firm with a better reputation. To much uncertainty with staying. Its definitely an “all your eggs in one basket” scenario.

I don't know your relationship with him but you can ask him for a market increase after you get your CPA license. Otherwise you should leave by this upcoming January.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

I would jump ship on good terms. You can always come back and buy the business. Don't kid yourself the mentoring mumbo jumbo won't hold if someone is willing to offer more money. The fact he is paying you 40k is a either a good indicator of his business's short comings or his greed. The greed might bite you in the ass in 10 years if another person is willing to buy the business off him for a higher price than you. If anything, him selling the business is more incentive to bring up your income so you have money to buy it.

Who says the banks will loan you money in 10 years when the next hypothetical financial crises hits if your making 40k. I am also assuming that you haven't seen his books. He might not be that profitable and/or his “friends” may leave in 10 years. The business might be worth crap in 10 years. TurboTax Fortune 500 or simpler returns?

You could probably be a partner at another firm in 10/15 years. 10 years in tax at a bigger firm might give you a larger salary than his business in the same amount of time. You could also create your own business in 10 years and have contacts and a stronger resume to bring clients in if you leave to a firm with a better reputation. To much uncertainty with staying. Its definitely an “all your eggs in one basket” scenario.

I don't know your relationship with him but you can ask him for a market increase after you get your CPA license. Otherwise you should leave by this upcoming January.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

I have a feeling CR7 is about to speak Spanish to confuse some of us.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

I have a feeling CR7 is about to speak Spanish to confuse some of us.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Guti]

si dovrebbe passare a sud della Florida. ci sono un sacco di persone spagnoli troppo pigro per studiare per l'esame cpa. Io attualmente faccio 75k in contabilità privata con 5 anni di esperienza.

FAR-84
AUD-
REG-
BEC-

[Guti]

si dovrebbe passare a sud della Florida. ci sono un sacco di persone spagnoli troppo pigro per studiare per l'esame cpa. Io attualmente faccio 75k in contabilità privata con 5 anni di esperienza.

FAR-84
AUD-
REG-
BEC-

[san4596]

You are seriously underpaid and have 2 options:

1) You enter into a Junior Partnership where your salary is increased by the amount of income you generate.

2) Jump ship to a larger firm that has audit, accounting, and tax. I am in Southeast Texas, and making $50K with benefits.

What's wrong with Texas? We are awesome!!! 😉

CPA EXAM: DONE!!!!
Ethics Course: Passed
Application Mailed: 3/16/15
Professional Conduct Exam: 97
Certification Date: 4/2/15!!!

[san4596]

You are seriously underpaid and have 2 options:

1) You enter into a Junior Partnership where your salary is increased by the amount of income you generate.

2) Jump ship to a larger firm that has audit, accounting, and tax. I am in Southeast Texas, and making $50K with benefits.

What's wrong with Texas? We are awesome!!! 😉

CPA EXAM: DONE!!!!
Ethics Course: Passed
Application Mailed: 3/16/15
Professional Conduct Exam: 97
Certification Date: 4/2/15!!!

[fsugirl2005]

@ CR7

That was hilarious…LOL. You may have a point though. I don't see a lot of Spanish/Italian/Portuguese CPAs. I'm in Florida and I still wish till this day I can speak Spanish fluently. I can estimate that I am 20% bilingual if that makes any sense. Much of my Spanish I learned in high school and I still remember today. My little one is half Hispanic so I want him to learn so he can speak to his abuela(grandmother) because she sucks at English. And yes the OP should move to Florida because she would fit right now.

REG - 78
FAR - 79
AUD - 76
BEC - 75

I have been on this journey off and on for over 10 years. I think it's about time that I wrap this up.

AUD - 10/21/16 (75----07/2010 expired)
FAR - 10/28/16
BEC - 11/2016
REG - 01/2017

Using Gleim CPA Review, Ninja Audio, Ninja Book

[fsugirl2005]

@ CR7

That was hilarious…LOL. You may have a point though. I don't see a lot of Spanish/Italian/Portuguese CPAs. I'm in Florida and I still wish till this day I can speak Spanish fluently. I can estimate that I am 20% bilingual if that makes any sense. Much of my Spanish I learned in high school and I still remember today. My little one is half Hispanic so I want him to learn so he can speak to his abuela(grandmother) because she sucks at English. And yes the OP should move to Florida because she would fit right now.

REG - 78
FAR - 79
AUD - 76
BEC - 75

I have been on this journey off and on for over 10 years. I think it's about time that I wrap this up.

AUD - 10/21/16 (75----07/2010 expired)
FAR - 10/28/16
BEC - 11/2016
REG - 01/2017

Using Gleim CPA Review, Ninja Audio, Ninja Book

[FARtogo0114]

I wish I was in Dallas with your credentials. I live in Detroit (horrible economy) and I was able to get a tax position at a national firm before taking the exam. I have one part to go, and I am light years ahead of staff at my level.

You have to be aggressive and take chances. Either bring clients to your current business, start your own business, or try to leave.

As far as your age, that's meaningless. A lot of people choose accounting as a second career, so they are older. The average age for a CPA candidate is 28.

Dallas has a great economy and plenty of opportunities for a tax CPA. You have to apply to every top firm in Dallas and maybe even look at towns close by like Arlington or Fort Wayne.

Again, I wish I was in Texas. Your future is bright my friend, if you apply yourself.

BEC 87
REG 76
AUD 67, 76
FAR 67, 79

DONE!! Feb 2014

[Author]

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