Evaluating Your Worth: Are You Being Compensated Fairly as a Bookkeeper?
Greetings to all my fellow bookkeepers! I wanted to share my journey with my current employer, hoping it resonates with some of you who might be in similar situations. Three months ago, I stepped into the role of Senior Bookkeeper in this growing company. Initially, I was presented with a salary range between $50,000 and $60,000 gross. Opting for the lower end at $50,000, I was cautious about what the job truly entailed; little did I know the scope would be far more extensive than expected.
The past few months have been a whirlwind of activity. My primary responsibilities have included tidying up and updating the financial records for eight out of what could be 15 companies. I inherited quite a mess when the previous bookkeeper left in May, and it’s been a challenge ensuring the 2023 books are clean and current. Additionally, I’ve been juggling the preparation of 1099s, handling accounts payable, dabbling in light accounts receivable, and reconciling statements that vary from 15 to 100 transactions each. My duties extend beyond traditional bookkeeping—I’m also steering five projects, which demand meticulous project management, including creating and updating Excel sheets, scanning documents, filing, and executing more accounts payable tasks. While payroll hasn’t been on my plate yet, it looms on the horizon.
Considering all these tasks accomplished within three months, I’m contemplating whether it’s time to discuss a raise. Here’s my rationale:
- The workload and responsibilities vastly outstrip what I initially signed up for, especially as the company scales.
- A significant part of my job has involved correcting and enhancing the work left by my predecessor, catching discrepancies that were previously overlooked.
- Despite time constraints, I’ve successfully managed tasks mentioned above.
- I’ve taken the initiative to revamp several Chart of Accounts. They were overly generalized and needed customization to reflect specific company expenses better.
- Often, my days extend beyond regular hours to ensure everything runs smoothly.
- I’m pursuing further education to earn my CPA, which could enrich my contributions—even if it’s not the strongest bargaining chip.
- Furthermore, my position doesn’t come with any benefits, which feels like a notable oversight for the role I play.
I’m considering requesting a 20-30% raise to more accurately reflect the value I bring to the company. I’d love to hear thoughts or
One response
When evaluating whether you are being underpaid, it’s crucial to consider a combination of industry standards, your specific contributions, and the circumstances surrounding your employment. Here’s how you can approach your situation:
Evaluate the Industry Standards
Research Salaries: Start by researching what other Senior Bookkeepers with similar responsibilities earn in your area. Websites like Glassdoor, Payscale, and LinkedIn Salary Insights can be valuable resources for this data. Consider factors such as geographical location, company size, and industry type, as they can significantly affect salary ranges.
Benchmark with Peers: If possible, discreetly network with fellow bookkeepers to gain insight into what they are earning, especially those with similar roles and responsibilities.
Assess Your Contributions and Responsibilities
Scope of Responsibilities: Your list of responsibilities is extensive and includes tasks typically associated with both Bookkeeping and some project management. The breadth of your role suggests that your responsibilities exceed typical expectations for a Senior Bookkeeper.
Impact on the Company: Highlight the tangible benefits you’ve brought to the company, such as streamlining Accounting processes, catching errors from previous work, and successfully managing multiple projects. Quantify these achievements with specific examples where possible.
Justify the Raise Request
Performance and Commitment: You’ve demonstrated exceptional dedication, as evidenced by your willingness to clean up past errors, take on extra projects, and rework the Chart of Accounts. Document these efforts clearly.
Market Dynamics and Company Growth: Since the company is expanding, it is likely acquiring more work, thereby increasing its demand for skilled Bookkeeping. This strengthens your position to request a raise.
Lack of Benefits and Additional Workload: You’re not receiving benefits—a significant omission that often supplements total compensation package value. Coupled with your additional workload, these factors are sound justifications for a raise.
Approach for the Raise Discussion
Prepare Your Case: Ahead of initiating the discussion, prepare a detailed report of your contributions and market research. It’s essential to come from a position of informed negotiation.
Be Specific in Your Request: Instead of asking for a blanket 20-30% raise, tie your request to industry benchmarks and the increased responsibilities you’re undertaking. This shows professionalism and balance between your expectations and market standards.
Timing and Tone: Choose a timely moment to discuss your raise when the company’s financial health appears strong