Sign up to receive accounting tips, videos, news and webinar info before anyone else
Mailing Address
21750 Hardy Oak Blvd
Ste 104 PMB 63328
San Antonio, TX 78258-4946
(760) 697-1033
Handling business taxes is often more complex than it sounds. And if you’re already mired in CEO duties, taking the time to do your business’s taxes yourself isn’t always feasible.
Outsourcing accounting is the answer for many businesses. But unfortunately, plenty of business owners pass up this opportunity because they believe it’s too expensive. So how much does hiring an accountant cost?
How Much Does Hiring an Accountant Cost?
Without knowing more information about your business and the accountant, it’s impossible to come up with an exact figure. But how much do accountants charge on average?
According to the Bureau of Labor Statistics, the average cost of an accountant is about $40 per hour. Keep in mind that that rate is for one accountant.
Comprehensive accounting services (like those offered by a whole accounting team) cost significantly more — outsourced accounting departments can charge as much as $100 per hour or more.
That might sound like a lot. However, as cost & profitability planning will likely indicate, hiring outside accountants is almost always significantly less expensive than hiring additional employees.
How Accountant Costs Are Calculated
As you can see, the cost to hire an accountant is highly variable. But what factors actually contribute to the cost?
The two main things that determine an accountant’s rate are the services your business needs and the accountant’s qualifications. Both the types of services you hire an accountant for and the frequency of services will influence the total price.
More qualified and/or experienced accountants will typically command a higher rate. You may also choose to look for an accountant with one or more of these certifications:
- Certified Public Accountant (CPA)
- Certified Fraud Examiner (CFE)
- Master of Accounting
- Certified Management Accountant (CMA)
As you may have guessed, accountants with one or more of the above qualifications will likely cost more.
What Services Can an Accountant Provide?
Unlike a bookkeeper, an accountant looks at the big picture of your business’s finances. Here are some of the financial duties an accountant may be able to provide:
- Tax preparation
- Regulatory compliance monitoring (for financial regulations)
- Bookkeeping
- Financial software administration
- Financial reporting outsourcing
- Auditing
- Consulting
- Payroll management
Of course, some accountants may not offer all of these services. Before hiring a business accountant, make sure you understand the duties they can (and cannot) perform.
Benefits of Hiring an Accountant
If you’re wondering “how much does hiring an accountant cost?” it’s important to first consider some of the benefits of hiring a business accountant:
- You can avoid errors and penalties on your taxes
- You’ll save time and money
- You’ll have an expert to help with financial planning
- It’s less expensive than hiring full-time accounting employees
If you want to grow your company, an accountant can help get you on the path to success!
When Does Your Business Need an Accountant?
In many cases, the average cost to hire an accountant is financially feasible, even for smaller businesses. But do you need one? Here are a few situations where you might:
- Getting started with new bookkeeping systems
- Filing business taxes
- Running an audit
- Organizing and maintaining financial records
- Seeking financial advice
As you can see, some businesses may only need the help of an accountant a few months out of the year. Others may benefit from year-round financial help.
Should You Hire an Accountant? A Cost-Benefit Analysis
Not sure whether you should hire an accountant? If so, you can run a cost-benefit analysis. This will give you a more exact answer to the question, “how much does hiring an accountant cost?”
To run an analysis, you need to make two columns. One contains the benefits of hiring an accountant. The other is for the costs of hiring an accountant.
For each benefit, assign an approximate monetary amount. Do the same for hiring costs. If the benefits outweigh the costs, hiring an accountant is probably worth it. Here are some questions to help you get started:
- What services do you need? How much are they?
- How much would it cost to outsource these services?
- How often would you need these services?
To get an accurate idea of the cost, call around for quotes from a few different accountants and/or firms. There’s often a huge variation in price!
Matt Garrett is the Founder and Chief Executive Officer of TGG. He is a regular speaker across the country on behalf of Vistage educating business owners on the need for sound financial practices, and is Vice President of the Board of Directors of FINACA. Under Matt’s leadership, TGG has received the following recognition: INC. 5000 top companies in the U.S. five years in a row; one of “San Diego’s Fastest Growing Companies” the past four years; and is among San Diego’s “Best Places to Work.”
