I am a tax manager at a small mid size firm and will be promoted to senior manager or director at the end of this tax season. I 100% manage my own book of business and team of 1 US CPA and 2 offshore team members with revenue of about 1.3M 45% of which I originated and I am making $135,000 with no bonuses for the past three years because the firm didn’t reach its overall growth goals. What is reasonable compensation to ask for. I am in a medium cost of living area.

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100k more than what you have now. Plus should negotiate for a % of recurring fees on any new business you bring in.

likefunny

Spot on some seniors at larger firms and entry level managers make that in industry with no growth potential

likehelpful

That’s insanely low. As a first year manager I made $150k last year including bonus. My book of business is only about $100k in revenue right now.

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im a first year manager with 5 years total experience and i make more than that in MCOL. Leave or ask for $200k min.

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Cool so I am not crazy in thinking I am severely under paid.

smart

I agree that your description is worth a lot more than you’re currently making. $250-350k would make sense based just on the surface level rev numbers & you owning your book, but a few context questions for you to consider-
1. Good realization on the rev?
2. Do you lead the difficult client conversations (unexpected balances due, unwanted extensions, errors, etc)?
3. Do you make all of the difficult decisions?
4. Are you the final go to for figuring out items the engagement team couldn’t figure out?
5. Are you the final go to for making complex decisions on your clients?
6. Do staff and managers like working for you and develop under you?

1. My teams realization is very good.
2-5. Yes, to all
6. I have not had anyone ask to be switched from my team.

Also, they let me know that they are going to offer me a partnership position in 2027 and they expect my initial comp to be around $220,000

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