I am a product. I had a partner come up to me at an after busy season party last year. (Those are always ragers.) I was doing some brown-nosing and the partner started to explain the “business” of public accounting to me. He told me all about how he was a salesman. He sold my time to clients at a premium. He even referred to me at one point as being similar to a “widget”. The sad part is that he’s right. If you take my annual salary plus bonus and divide it by the number of hours I charge a year, it comes out to less than $30 an hour. The partner then goes out and sells my time to clients for around $200. That’s an 85% Gross Margin!!!!

I’m not stupid. I realize that there are other costs involved in running an accounting firm. The suite at the Staples Center won’t pay for itself and the going rate on renting a few floors at a downtown sky rise isn’t cheap. NEVERTHELESS, the typical staff accountant earns his total ANNUAL salary in less than two months of work. The other 10 months of work you do goes right into the pockets of the firm/partners. That seems grossly disproportionate. Especially considering the fact that if you ask for a little extra money at raise time you’ll probably get laughed at.

Question or comment? Do you agree or disagree with the above article?Let your voice be heard. (Your responses will be posted in an upcoming article.)