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Am I Being Underpaid?
Hello fellow bookkeepers,
I’m reaching out to share my current situation and gather some opinions. Three months ago, I joined a company as a Senior Bookkeeper with a starting salary between $50,000 and $60,000 gross. I opted for the $50,000, unsure of the exact expectations, which turned out to be more demanding than anticipated.
Here’s a rundown of my responsibilities: I’ve been working on cleaning and catching up the 2023 books for eight of their companies (potentially out of 15). The previous bookkeeper left in May and had left some disarray. My tasks include bringing all accounts up-to-date, filing 1099s, managing accounts payable and light accounts receivable, reconciling accounts with transactions ranging from 15 to 100 per statement, and generating weekly and monthly reports. I am also overseeing project management for five projects, which involves creating and updating Excel spreadsheets, scanning, filing, and additional accounts payable tasks. Although I haven’t handled payroll through a third party yet, it’s on the horizon.
I’m contemplating asking for a raise due to several reasons:
- I feel my current compensation doesn’t match my workload, especially given the company’s expansion.
- I have had to correct a lot of the previous bookkeeper’s mistakes and have identified omissions.
- I’ve accomplished all the aforementioned tasks within just three months.
- To improve financial clarity, I restructured the Chart of Accounts to better align with each company’s specifics, allowing for a clearer understanding of expenses.
- I often extend my work hours to ensure daily tasks are completed.
- I’m planning to return to school to pursue a CPA (though I’m unsure if this is relevant).
- I’m currently not receiving any benefits.
I’m considering requesting a raise of 20-30% and would appreciate any thoughts you might have on this approach.
P.S. I manage everything independently, but I do have access to the company’s accountant for questions as needed.
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One response
Evaluating Your Salary: Are You Being Underpaid?
Based on your description, it seems you have taken on a substantial amount of responsibility in your role as a Senior Bookkeeper. There are several factors to consider when determining if you’re being underpaid and if a salary raise is warranted. Here’s a detailed look into your situation:
Responsibilities and Current Compensation
Initial Offer and Current Salary: You accepted a starting salary of $50K on a $50K-$60K range. It’s important to evaluate if your current responsibilities align with what was initially expected when you accepted the lower end of the range.
Workload and Tasks: You’ve detailed a variety of tasks that include:
The breadth and depth of these responsibilities seem significant, especially if you are the sole person managing them.
Justifications for a Raise
Increased Responsibility and Workload: Given the wide scope and challenging nature of your duties, as well as your ability to manage and correct previous errors, this strengthens your case for a raise.
Contribution to Company Growth: The company is expanding, and your efforts in cleaning up the books and managing projects are contributing to that growth, which should be recognized financially.
Additional Skills and Education: Although you’re still in the process of earning your CPA, your commitment to advancing your qualifications demonstrates a dedication to adding future value to the company.
Lack of Benefits: The absence of benefits is a critical factor that can further justify a salary raise. Full compensation often includes benefits, so without them, a higher salary might be necessary to make up the difference.
Market Rate: Research the average market rate for Senior Bookkeepers in your area with similar responsibilities. Sites like Glassdoor, Indeed, or Payscale can offer insights into what others in your