How Much Does a CPA or Accountant Cost?

cpa cost

It is recommended to hire a certified public accountant (CPA) or accountant to handle your financial issues or for handling the financial records of a business company. However, many people ask this question: How much do CPAs or accountants charge? There are significant differences that can be observed in the general costs depending on the experience and geographical location of the independent contractor and the required services. This article will give you an idea of what a typical cost is or should be for you to have an insight when hiring an accounting service.

This will explain what a CPA or Accountant is and what he or she does.

To better know the services offered by a CPA or accountant before looking at the prices, the following are some of the commonly offered services. Typical services include:

- It involves preparing and submitting tax returns to the tax authorities.
- Bookkeeping
- Payroll services
- Financial statement preparation
- Audit support
- Advisory services/financial planning
- Advisory work on accounting matters or process

A CPA is similar to a regular accountant; however, it is a licensed professional who has passed an extensive CPA exam. The holder of a CPA license has more credibility, responsibility, and information in comparison to others. But then, there are those accountants who still have very strong qualifications but they have not sat for the CPA exam.

Charges For Accounting Services Per Accountancy Firm

According to recent studies, standard accountants have been known to charge between $30-$100 per hour on average. It is also important to note that CPAs cost more on average – from $100-$200+ per hour in most cases. However, the prices are not standardized and can notably differ from one company to another. Factors impacting costs include:

- Experience – this determines the fees charged by CPAs; experienced CPAs who have worked for several years will charge more than $100-$150 per hour while a new CPA will charge less than $200 per hour.
- Nature of services – For instance, complex audit support may turn out to be more expensive than mere payroll processing services. As for advisory services, they are also traded at a higher price.
- Location -It is evident that accountants who practice in big cities set higher rates as compared to accountants practicing in rural areas.
- Firm size – The rates of the specialist or boutique CPA firms are often slightly higher in comparison with the prices of the “big-box” chains.
- Month or season – Depending on the event, prices may tend to be high in the early months of the year, especially during the tax season.

Here is an overview of how much common accounting tasks may cost based on typical hourly rates:

- Tax Prep & Filing: $200 to $800+
- Bookkeeping: From $300 to more than $1000 per month.
- Payroll: This model ranges from $300 to $600+ per month.
- Financial Statements: $500-$2,000+
- Advisory Sessions: Costs vary from $200 to $400 per meeting

Please remember, the prices above are approximate and can be even higher if you choose a leading firm in a large city. Yet, it is also possible to have lower prices in the countryside or when working with junior workers including newly recruited accountants.

CPA Exam Costs

Earning a CPA means being a certified professional accountant which requires the candidate to take and pass the Uniform CPA Exam which is a licensing test. Expenses involved when preparing for CPA examinations vary and may cost as low as $1500 or as high as $3000. This includes books, tutoring, practice exams, license fees if any, transportation, and another attempt in case of failure. A CPA once licensed is in a position to charge better billing rates for his or her services.

How to Select the Proper Accountant for the Least Amount?

Here are some tips to find affordable, quality accounting help for your needs:

- I understand that defining the services required is important. Unnecessary services always bring in extra expenses.
- In this case, compare experience level to rates and match go for the most favorable.
- This is essential, especially if the employee is not physically disabled but faces other challenges that make it hard for him/her to perform some tasks; in such cases, consider outsourcing or getting the services remotely.
- When choosing a CPA or accountant, it is crucial to check with several and compare their quotes.
- The best talents are hard to find and therefore when working with such talents, especially in a large metropolitan city then one has to lower his or her expectations.

In conclusion, it is imperative to acknowledge that CPA and accountant costs differ considerably from one another. However, it always proves to be beneficial to invest in good quality accounting support as the returns generated in the form of tax savings, efficient data, financial planning, and excluding relevant blunders are many times the investment done. It is important to interview and compare different accountants or CPA firms and select the right one that can offer the best services at a reasonable price that will suit both parties.

Contact us here for accounting services now!

MAC Logo

Get Help Fast!

My Accounts Consultant Helps Accounting & Bookkeeping Services help you save money, better understand your business and find the Accounts problems before they hurt you.