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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 how much you should budget for an accountant. 

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 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:

  • 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 unpack the complexity part, shall we?  

The size of your business (think revenue), the volume of activity (transactions), and the type of reports (beyond balance sheets and P&L’s) you need play a role in determining the cost.  The number of depreciable assets you have is also a consideration in determining monthly accounting fees. 

Are you an HVAC company with several teams that each have their own credit cards?  Those statements need to be categorized and reconciled.  Or how about a law firm with trust accounting considerations?  IOLTA isn’t something to take lightly.  You need an expert to help keep solid records. 

We have clients that range from $500 to $3,000 per month depending on their size, complexity, and need. 

Making the Decision

So, how do you decide what’s a reasonable expense for your accountant?

Think about how much time you’re currently spending on financial tasks and consider what you could achieve by outsourcing those responsibilities. Monetize it.  Three hours of your time a week, at your CEO level rates, is often a lot more expensive than outsourcing to a firm who specializes in providing the financial information you need.  

Not only can your accountant save you that time, they can also maximize your tax deductions and help you avoid costly mistakes.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.