How much of a raise should I request?
Hey Reddit accountants and bookkeepers! I’m looking for your advice. I appreciate any insights you can share.
I recently transitioned to an industry role as a bookkeeper/admin in a high cost of living area, after spending a year at a small tax/Bookkeeping firm. I’ve been in my current position for a couple of months and am on track to complete my Accounting certificate by the end of the year. I have some relevant training as I took financial and managerial Accounting courses in high school, and I’m also considering QB Pro Advisor training. Currently, I’m earning $27 per hour along with benefits.
My responsibilities include:
- Bookkeeping
- Accounts Receivable and Accounts Payable
- Sales tax filings
- Vendor communication for purchasing, cost analysis, and inventory updates in the warehouse
- Job costing
- Cash flow management
- General administrative tasks
Given that I’ve been in the role for around six months, should I ask for a raise now or wait until a year? And how much should I aim for? Additionally, how much experience should I gain before pursuing a staff accountant position? Thank you!
One response
Deciding when and how much to ask for a raise hinges on several factors. Based on your situation, here are some points to consider:
Timing: Since you’ve only been in your current role for a couple of months, it might be better to wait until you finish your Accounting certificate at the end of the year before asking for a raise. This way, you can demonstrate the value that the additional education brings to the role.
Market Research: Research the salary range for bookkeepers and entry-level accountants in your HCOL area. Websites like Glassdoor, PayScale, and the Bureau of Labor Statistics can provide insights into what others in similar positions are making. This will give you a solid benchmark when asking for a raise.
Performance and Contributions: Consider your contributions thus far. If you’ve taken on additional responsibilities, improved processes, or brought added value through your work, this will strengthen your case for a raise.
Percentage of Raise: A common range for raises after six months to a year is 3-10%, depending on your performance and the company’s policies. Given your background and the fact that you’ll soon have your Accounting certificate, aiming for something closer to 10% might be reasonable if you have demonstrated your value.
Future Goals: As for moving to a staff accountant role, gaining around 1-2 years of experience in your current position can be beneficial. It’s important to communicate your career goals to your supervisor so they can guide you and help you find opportunities for growth.
In summary, waiting until you complete your certificate to ask for a raise may be smart, especially if you can show how it will enhance your contributions. Aim for market-aligned percentages while also emphasizing your achievements and value. Good luck!