How Much Do Accountants Cost for Small Businesses?

While many small-business owners opt to do their own accounting and bookkeeping, there may come a time when you decide to hire out these services. Accountants can help you improve the financial health of your business, create reports that can help you secure funding, and prepare your taxes accurately and efficiently.

So, how much do accountants cost for small businesses?

The answer depends on the size of your business, your industry, and a few other factors. In this article, we’ll discuss the average cost of accounting services for small businesses.

An accountant takes a look at a business’s bookkeeping data to provide financial insights, such as reports, financial planning, and tax forms. They also help business owners reduce taxes, reach financial goals, and increase cash flow. Above all else, an accountant advises small-business owners on how to optimize and improve their business finances.

Here are some of the most common responsibilities of an accountant for small businesses:

• Financial data analysis
• Financial statement preparation
• Tax planning
• Tax return preparation
• Business forecasting

It may be time to hire an accountant if you are seeking funding, in need of help preparing taxes, or in need of financial advice as you start or scale your small business.

Accountants can ensure your financial reports are accurate and optimized, so you can minimize taxes, increase cash flow, and grow your business. It’s especially helpful to have an accountant to help you prepare tax returns or any other type of government form.

Accountants and certified public accountants (CPAs) charge different amounts based on their years of experience, location, and the industry they’re serving. So, if you’re a small-business owner in need of non-specialized accounting services, you can expect to pay an accountant anywhere from $150 to $450 per hour on average.

According to a recent report from Score.org, most small businesses end up spending $1,000 to $5,000 annually on accounting fees and services.¹

Accounting and bookkeeping go hand in hand, but they are two distinct roles. What’s the difference?

A bookkeeper records business transactions and day-to-day operations. Their job is to manage bills, payroll, invoicing, and transactions with suppliers. Most bookkeepers monitor cash flow, create budgets, and manage accounts payables and receivables.

Accountants take the information compiled by a bookkeeper to provide greater financial insights. Their role is more strategic, with a goal of optimizing the business's overall efficiency.

The cost of hiring an accountant for your small business depends on factors like location, industry, and the size of your business. Most accountants charge between $150 and $450 per hour—but you can enjoy some of the same benefits by opting for a more affordable accounting software, which typically costs up to $150 per month.

Would you like to learn more about accounting for small businesses? Check out Business.org for Accounting 101: A Guide for Small-Business Owners.

Disclaimer

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