As a small business owner juggling daily tasks and dreaming of the day you can have someone else handle your accounting, you might be wondering: What is the true accountant cost, and how much should you budget for one?
So, let’s talk about the factors that influence accounting costs. We’ll start by addressing the big question: What does an accountant actually do for your business?
What Is an Accountant
When you think of an accountant, you might think of someone who’s great at math. You’d be correct, but there’s so much more to it. An accountant is not just a number cruncher. They’re a strategic partner who helps guide your business towards financial success. They provide crucial financial statements and offer insights that help you make informed decisions for the future. Plus, they can help you secure funding when you need it.
By analyzing the previous month’s business activity, an accountant gives you tools to review your progress and plan for the future. Their expertise can be the key to unlocking new opportunities for growth!
Factors Influencing Costs
Now, let’s talk about accountant costs. How much should you expect to pay for accounting services? The short answer is—it varies!
Here are a few factors that influence accounting fees:
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- Experience and Expertise: More experienced accountants usually charge higher rates.
- Location: Fees can differ based on where you’re located.
- Complexity of Services: Basic bookkeeping might cost a few hundred dollars a month, while more complex tasks like tax planning can cost several thousand dollars a year.
Let’s dig deeper into complexity.
The size of your business (measured by revenue), transaction volume, and the type of financial reports required all play a role in determining your accountant cost. The number of depreciable assets and industry-specific needs can also impact pricing.
For example:
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- An HVAC company with multiple teams, each using separate credit cards, requires extensive categorization and reconciliation.
- A law firm with trust accounting (IOLTA) must maintain meticulous records to ensure compliance.
At Aligned CPA, we work with businesses that invest anywhere from $750 to $3,000 per month in accounting services, depending on their size, complexity, and financial needs.
Making the Decision
So, how do you decide what’s a reasonable expense for your accountant?
Ask yourself:
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- How much time do you spend on bookkeeping each month?
- What is your hourly rate as a business owner?
- Are you missing out on tax savings or financial insights that could improve profitability?
For many businesses, outsourcing accounting services is not just a cost—it’s an investment. If you’re spending three hours per week on financial tasks at your CEO-level rate, hiring an accountant is often more cost-effective.
Not only can an accountant save you time, but they also maximize your tax deductions and help you avoid costly financial mistakes. In the long run, a well-managed accountant cost leads to greater efficiency and profitability for your business.
In the grand scheme of things, investing in a good accountant might be the best decision for your business’s long-term success! We certainly believe so.
Final Thoughts
While this isn’t as black and white of an answer you probably hoped for, we hope it gives you a realistic idea of what to consider when budgeting for outsourced accounting fees.
If you’re ready to receive a real quote on what accounting services will cost, schedule a consultation with our expert team today. We’ll work together to create a strategy that aligns with your business goals.
Joy Lutz, CPA, CTP
As the founder of Aligned CPA, Joy has built a firm that is your strategic financial partner. With a growth centric approach, we build meaningful relationships with our clients because we value their success as much as our own.
Positioning ourselves as the tax and financial strategists for your business, we help you make empowered, financial-based business decisions that lead to long term success.