How Much Does It Cost to Hire a Tax Accountant?

how much is a personal accountant

Since those factors make your return more complicated and take more time to get right, CPA firms typically charge more for them. For example, if you have ownership in another S corp, you’ll receive a Schedule K-1 that tells you how much you made from it. That makes things more complicated on your tax return and increases the cost of it.

The average small business tax return for a Schedule C costs $187, according to the National Society of Accountants (NSA). A personal income tax return costs an additional $294 (or $188 if you take the standard deduction and don’t itemize). Accountants help take the pressure off of analyzing your accounting books and making decisions that affect cash flow. You can reduce the cost of hiring an accountant by doing some tasks on your own. Another factor that influences the cost of hiring an accountant is what tasks you need them to do. And, more difficult, time-consuming tasks are typically more expensive.

Alternative: Use Accounting Software

Ultimately, we’ll summarize the benefits of implementing a well-oiled accounting structure, outlining the accounting fees and small business expenses that owners need to keep in mind. It’s also important to note that not all accountants or accounting services prepare or submit taxes. A common question that we hear is–what is an affordable accounting fee for small businesses?

  • Plus, your CPA will already know what to do with your tax return — which takes up less time and costs you less money.
  • Small businesses often choose accounting services that charge a fixed amount every month.
  • Bookkeepers are more day-to-day financial specialists, helping manage a business’s books through data entry, bank reconciliation, and managing financial statements and monthly reports.
  • The CPA will likely want to meet with you before and during the process of doing your tax return.
  • These companies implement software to guide you through the tax return process.
  • Those who have a sudden increase in income or no income at all are more likely to be audited, so this is not a case you should be particularly concerned about.

The CPA will likely want to meet with you before and during the process of doing your tax return. That helps them get a better understanding of you and your business’ situation — and that’s time you’ll probably have to pay for. When it comes to the cost of tax preparation, it all depends on which tax forms you need to file. To give you a better idea, below is the average cost of tax preparation per form, according to the NSA Report.

How Much Does An Accountant Cost In 2023?

It’s up to you to take ownership of how you’ll plan your business. A CPA, or Certified Public Accountant, is an accountant who passed the Uniform CPA Exam personal accountant and is a licensed and registered CPA. You can determine a CPA’s legitimacy by asking for their CPA number and verifying it on a site like CPA Verify.

  • They keep records, monitor transactions, and prepare and file tax documents.
  • We track the estimates they get from local professionals, conduct our own research and then we share those prices with you.
  • You can organize your books by reconciling your accounts, correcting your balance sheet and income statement and using accounting software.
  • DIY accounting can be complicated, but it’s suitable if you’re a start-up or a very small business.
  • They deal with official company reports to investors, clients, and the Securities and Exchange Commission.
  • Ultimately, you should choose the option that best fits your needs and your budget, of course.

Heleana Neil specialises in Business Services, managing the strategy and production of content for SMBs, helping businesses with the challenges and opportunities they face today. Covering everything from payroll to payment processing, Heleana uses her expertise to help business owners make better, informed decisions and grow their companies. Small business accounting tools can help you handle some of the work on your own, like managing payroll, so you can hire an accountant solely for your returns. Knowing your tax return expenses ahead of time can help you budget accordingly, but there are also other methods for managing costs. Besides putting money aside, one of your best moves is to keep your records in order, which will help you avoid that average $133 penalty for submitting disorganized tax files.

Accountants on Thumbtack cost$50 – $80

Some CPAs bill hourly, per form, or according to the service being provided. When looking at the cost of filing taxes only, it usually won’t break the bank. And, hiring an accountant to prepare and file your business taxes can be counted as a business expense, and therefore count towards your tax deductions. Hiring a reputable accounting professional will help keep you on track with all business payments, bookkeeping, cash flow, financial development, and business expenses. If you decide to DIY your own bookkeeping and accounting, the opportunity cost might be that you make a serious financial business mistake. Hiring someone to manage your finances eliminates financial risks because the chances of making serious mistakes are almost none.

  • If you only need an accountant for an occasional project, like tax preparation or an audit, you can ask for an estimate of the total cost before they begin work.
  • However, we can break down some costs to give you a clearer picture of what your small business accounting expenses can be.
  • Working for individual clients, financial planners help people to manage long-term financial goals.
  • You can choose to hire an in-house accountant, or you can outsource recordkeeping.
  • Jariwala points out that a one-person shop might be ideal if your needs are straightforward since the same person will be able to address your needs.

An accountant can catch problems with your numbers, helping you avoid penalties. They can point out the best course of action for funding your venture and help you select small business loan services if needed. If there are problems with cash flow in your company, an accountant can provide their financial expertise. If you’re interested in having a CPA do your next tax return, schedule a free call with a member of our team today. You can view our range of prices for tax returns here — so you don’t have to wait for a quote, talk to a salesperson or stay in the dark about the price of your return. Making those decisions throughout the year helps you save on the cost of your tax return in a few ways.