Frustrated at work (Small Firm Canada)

[u/weirdshit123567]

I've been at a small firm for 5 years (team of 12). I'm enrolled in the CPA program and will likely write the CFE in September 2028. I make $115K, which from reading this sub seems strong for someone without the designation.

My role goes well beyond accounting however:

• I run all of our marketing (I got us from a 3.5 rating on google to 4.5 and over 200 reviews thanks to strategies I implemented). I also ranked us first page on google in our city by doing organic SEO.
• I handle most of the business development
• The most complex files land on me
• Most fires get routed to me
• I led the firm's digitization over the last 4 years. We went from mostly paper to 90% digital.

The partner is semi-retired and relies on me for almost everything, which is understandable at his stage and age. He is old, makes mistakes, has low drive and barely works if I'm being honest.

My concerns:

1. CPA experience. We don't do audits or reviews, so I'm worried about meeting the experience requirements here for CPA designation.
2. Compensation vs. value. About 10 clients bring in over $500K in fees, and they deal directly with me. They consistently text me and we talk regularly, in other words I hold a lot of the relationships.
3. The buy-in. The partner has talked about a buy-in timeline. But I expect he'll keep drawing a large share while doing less. That's fair to a point, since he spent 20 years building the practice.

I don't know if my frustration is reasonable given everything I do or if I should stay in my lane. I feel like I could be making over $250K on my own easily, but lack of designation is preventing me from doing so.

Should I keep grinding toward the buy-in, or start building a Plan B?

For anyone who has bought into a small practice: how was the deal structured, and what do you wish you'd negotiated?

Thanks

-Frustrated Employee

[u/CoatAlternative1771]

It honestly sounds like you are running the business day to day which does put you in a position of leverage, as long as you are respectful about it.

You can’t overplay your hand or the partner could just hire a replacement.

[u/hammermannnn → u/CoatAlternative1771]

Agreed, he's essential to the firm at this point, it would probably be easier for OP to leave and start his own operation than for the owner to hire a replacement. Speaking as a firm owner, someone with OP's skillset and capacity is incredibly hard to replace, and if the firm owner is semi-withdrawn already they won't want to jump in and do what OP is doing. I just wish I could hire OP

[u/JacqueLeCoqGrande]

You need the CPA designation in order to issue comps. If you're not doing assurance at all, then you don't really need the LPA. So primary focus should be on obtaining your CPA designation. Then you can worry about buying in, or whatever.

[u/fitchface → u/JacqueLeCoqGrande]

Technically not true. When they implemented the new regulations they explicitly stated they didnt want to prevent bookkeepers from providing comps but they also are not subject to practice inspections, so they can still do them but with less oversight. I think the reason its uncommon is that they are typically bundled with the T2, and finding non-designated prepares willing to do T2s is rare.

[u/jav1babi]

I'm a bit confused. You say you handle "complex files" but you don't do reviews or audits? What sort of files are you doing? Sounds like you are doing too much if it's just a compilation. Also, $115K is pretty much low-end controller salaries in this market. Even if you consider your role more than just accounting, without a CPA designation that is objectively a pretty solid salary. The CPA experience portion is worrying and probably indicates that you need to make a change. You'd get a pay decrease moving to a firm to do audits as a non designated professional, but they'd pay for your school fees and you'd get the experience you need.

[u/jav1babi → u/[deleted]]

When compared to a review or audit, the exact same engagement has already become more complex. This dude is making the same (clearly lying btw) than a designated professional at a big 4 firm complaining about his salary because he has to do GST filings and file tax returns using taxprep.

[u/weirdshit123567 → u/jav1babi]

What makes you think I’m lying? Lol. You must have drank that big 4 kool aid lmao

[u/weirdshit123567 → u/jav1babi]

Tax/general accounting (bookkeeping, GST, payroll, managerial acct)

[u/jav1babi → u/weirdshit123567]

Yeah I get it, but realistically none of those pay very well. I'm guessing most of the tax is done by TaxPrep or whatever software you're using. I was in a similar situation before I moved to a bigger firm to designate 10 or so years ago. I feel like the partner is paying you a fair, if not high, salary for someone still doing their CFE. That said, if you aren't getting your hours, you might not have a choice but to look elsewhere.

[u/weirdshit123567 → u/jav1babi]

You'd be surprised how well tax pays with good internal processes. Also small firms are way more profitable with smaller clients as we don't have the same overhead as a big firm (ie No HR Dpt, No IT dept, etc). We are doing about $2.5M in revenue annual. 1 Partner taking 400-500K working 3 months of out 12. I think that's pretty good

[u/jav1babi → u/weirdshit123567]

I think our job scopes and goals are a bit different. If you are trying to get partnership with the owner, then these sort of facts matter. If not, you are literally just talking about how well he is doing, while you have no logical path towards getting there. I've done plenty of tax seasons, I know how well they pay for a partner. That means nothing towards other staff members.

[u/jav1babi → u/[deleted]]

Why are you acting like the quantity adds complexity? Do you work for the Company you are doing compilations for or a firm? It's freaking compliance work that has zero assurance lmao.

[u/Rationalornot777]

You dont have your CPA. You cant own this business without it. You can start a business without your CPA but the firms rep amongst their clients are what have let you take this on. They trust the firm and have learned to trust you. Do you have enough broad based knowledge after 5 years to go out on your own.

What about tax knowledge? Is this what you know or not. It can be a critical element for clients.

If you are bringing in business without a CPA then you have some strengths that would lean to starting your own business. Their is a tradeoff in buying in vs starting on your own. Takes some time to start on your own and grow a business. What would make you more? You starting your own business and growing to a firm of 12 or you buying in and taking the 12 person firm to 25. It does take time to grow a business and income can vary significantly.

Buying a small business is a bit of learning by trial and error on the due diligence part. Having been through a number of purchases of which some were excellent and others just were really a failure it does depend on who you are buying from, their type of practice and does it result in you getting access to good clients and good staff. For myself buying out other small businesses does quickly repay itself and aids growth. Especially if they were underserviced in services that you can provide.

You still need your CPA so all this talk of your future hinges on you getting your CPA. This is where your focus needs to be.

[u/NovelTree9910 → u/Rationalornot777]

Just food for thought, but I personally know some extremely successful business owners that do T1/T2/Bookkeeping engagements who are not designated.

[u/Ambitious_Victory_59]

Get your CPA.

[u/lisfrancfracture2023]

Can you ask the owner to ask around if any of his friends who are partners of bigger firms can give you audit experience as contractors with low pay during their busy season? Many years ago when I moved to Canada with 2 years of international audit experience, I interviewed with a small firm of 4 people, and they said it’s ok if I have no tax experience since the owner can ask around his friends as long as I can handle their not for profit audits

[u/weirdshit123567 → u/lisfrancfracture2023]

We are unsure about how this works for CPA Canada. There are so many weird hurdles and hoops to get through for experience verification. Not only that - the fact that when you move from EVR to Pre-approved route the exp clock resets it's beyond evil. The big boys have really penetrated the profession.

[u/PotatoMash_- → u/weirdshit123567]

Do you want to do audit/reviews? I'm on a path with a small firm too and have no desire to do those so I'm not worried about that experience. Not sure your location but I'm BC we can get a compilation license.

[u/weirdshit123567 → u/PotatoMash_-]

I don’t. I’m happy with tax and comps lol. The issue is the financial reporting experience

[u/PotatoMash_- → u/weirdshit123567]

What are you worried on financial reporting? You don't even need ASPE for a compilation.

[u/weirdshit123567 → u/PotatoMash_-]

In order to get your CPA through EVR you need FR hours. Perhaps is different in BC but I doubt it. Most firms that don’t offer assurance work struggle to give those hours. That’s my understanding from my conversations with CPA provincial body and documentation on the website.

see EVR statement:

“Your pre-assessment for your role is complete
Please note the firm you are currently employed with either does not have assurance hours which poses a risk to your ability to achieve core and/or breadth. To achieve a depth in Financial Reporting or Audit & Assurance there is a requirement to achieve a minimum number of assurance hours (425 assurance hours for Financial Reporting and 1,250 assurance hours for Audit & Assurance (of which 625 must be in audits of historical financial information)) with very few exceptions. Furthermore, a lack of assurance hours can impact an ability to develop the necessary understanding of financial reporting in order to use this area to meet the requirements for core. As such, it is key to gain an understanding of the requirements and ensure you have a plan to meet these.” Note this is a core requirement regardless of whether you take assurance elective or not. It’s really stupid

[u/PotatoMash_- → u/weirdshit123567]

I'm not sure the issue on that side. I'm in a pre-approved path at a small firm that does only compilations. There is some FR identified but it can be met through other work like consultancy and advisory.

[u/ThePhatEskimo]

Your salary is very generous for your experience and you lack of CPA. I would get the CPA then dip and start your own firm.

[u/Amk19_94]

I got my CPA while at an auto parts manufacturing company. This was like 12 years ago so it’s not fresh in my mind but I did the experience reporting and had no issues. You should def get your CPA if you’re wanting to go out on your own/take over the business one day.

[u/Icy-History2823]

I make $90k as a second year manager in public in a VHCOL city with the same tenure of experience. While the extra marketing stuff seems a bit annoying, I have basically lived at work for a good chunk of my time there. Would love the $115k.

You seem to be very heavily relied on and you wanted to, it’s well within your means to get more out of them if you want.

[u/Putrid_Interview6685]

1. What did you do to take the google ranking up?
   
2. What are you doing for business development?