Evaluating Your Worth: When Should a Bookkeeper Ask for a Raise?
Hello Bookkeeping community!
I wanted to share my experience and seek some advice. Three months ago, I embarked on a journey with a new company, starting as a Senior Bookkeeper. Although the initial salary offer ranged between $50,000 and $60,000, I opted for the $50,000 mark, as I was still uncertain about the full scope of responsibilities. As it turns out, the position demands more than I had anticipated.
Since my start, I’ve been tasked with a significant workload. My primary duties include organizing and updating the 2023 financial records for eight (so far out of possibly fifteen) of the company’s businesses. The previous bookkeeper departed in May, leaving behind records that required extensive cleaning. Besides managing accounts payable and light accounts receivable, I am also responsible for reconciling numerous accounts, with transaction volumes ranging from 15 to 100 per statement. Additionally, I prepare weekly and monthly reports, file 1099s, and have taken on project management for five projects, which involves tasks like updating Excel spreadsheets, scanning documents, and handling more accounts payable. Although I haven’t yet delved into payroll, I anticipate it in the near future.
I’m contemplating requesting a salary increase for several reasons:
- The company is growing, and I feel my pay doesn’t reflect the increased workload.
- I’ve invested time in correcting and enhancing work left by the former bookkeeper, often uncovering overlooked issues.
- All of this has been accomplished within a mere three months.
- I’ve improved the chart of accounts, making it more detailed and tailored to each company’s specific needs.
- Frequently working longer hours to ensure daily tasks are completed.
- I’m pursuing further education to obtain my CPA, which may enhance my qualifications (though I’m unsure if this is a valid consideration).
- Lastly, I currently receive no benefits.
With these points in mind, I’m considering requesting a 20-30% salary raise. I’d appreciate any guidance or opinions from those who’ve faced similar situations. Your insights would be invaluable!
P.S. – While I manage most responsibilities independently, I’m fortunate to have the company’s accountant available for consultation when necessary.
One response
It sounds like you’re handling a significant amount of responsibility and providing substantial value to your company. Based on the details you’ve provided, let’s break this down to provide some insights and practical advice on how to approach your situation.
Assessing Your Situation
Job Responsibilities and Workload: Your role seems to encompass a broad range of tasks well beyond typical Bookkeeping. You’re covering roles in accounts payable, accounts receivable, project management, and strategic financial restructuring. This breadth of responsibility indicates that your role might be closer to a financial analyst or a junior accountant than just a senior bookkeeper.
Industry Standards: You might want to research salary trends in your area using tools like Glassdoor, Salary.com, or Payscale. Look for job titles and descriptions that mirror your full range of responsibilities. Additionally, consider reaching out to industry-specific forums or communities where professionals might share salary benchmarks.
Impact of Work: You’ve not only managed existing tasks but have also improved systems—catching up on neglected books, offering strategic changes to the chart of accounts, and improving the reliability of financial data. These are significant contributions that likely have a positive financial impact on your organization, especially during times of expansion.
Non-Monetary Factors: The absence of benefits—such as health insurance, retirement contributions, and absence of payroll responsibilities—should be factored into your assessment since they are considerable components of a compensation package.
Preparing for a Raise Request
Document Contributions: Continue to document your contributions, achievements, and the impact of your work meticulously. Prepare a detailed report for your meeting, showcasing how you’ve added value to the company.
Set the Right Percentage: While you’re considering a 20-30% raise, ensure that it aligns with the data you’ve gathered from market research. A 20-30% increase might sound substantial, but if market conditions justify it, and given your role expansion and company growth, it’s reasonable.
Choose the Right Timing: Consider the best time to ask for a raise. Typically, performance reviews or the end of a fiscal year are appropriate times. However, if the company is currently seeing growth or success with your contributions, and there’s an obvious positive change, anecdotal evidence can also justify immediate discussion.
Prepare for Negotiation: Be ready to discuss more than just the salary. Consider discussing a benefits package, options for bonuses, or other