As a small business owner, you know that you need an accountant to help with various aspects of your business. But you’re also concerned about the cost. In fact, that’s why you’re in the position you’re in now – you don’t spend money without first doing research to make sure you’re getting great value in return for what you’re purchasing.
But how exactly do you go about researching how much an accountant is going to cost for your business?
This article takes a look at the factors that come into play when looking for a trusted accountant to help with your business.
The cost of a small business accountant
The first question most business owners ask when starting a search for an accountant is, “How much will it cost?”
To answer this question, think of your search for an accountant like you would think about a search for a doctor:
Hourly fees at the low end can range from $40 to $80 per hour and up to several hundred dollars per hour for highly credentialed specialists.
Flat fees can range from several hundred dollars to several thousand per month.
The difference between an accountant and a bookkeeper
You may hear bookkeeper and accountant used interchangeably. There is a difference, though, between the services provided by a bookkeeper and an accountant:
Many times, the same person provides both bookkeeping services and accounting services.
Professional Certifications
There are several certifications earned by accounting professionals who meet certain education and experience requirements and pass an exam. Keep in mind, though, that there are many highly qualified and competent accountants and bookkeepers who don’t have a certification.
Professional certifications are just one piece of the puzzle you should consider when evaluating whether an accountant or bookkeeper would be a good fit to work with your business.
Here are the most common certifications:
Certified Public Accountant (CPA). The CPA license is considered the gold standard certification for accountants. To obtain a CPA license, an accountant must pass the CPA exam and then acquire a certain number of hours of professional work experience while supervised by another CPA.
After obtaining a CPA license, the accountant must complete 40 hours of continuing education annually.
CPAs can sign audit reports and represent taxpayers in front of the Internal Revenue Service (IRS).
Each state has its own board of accountancy that regulates and oversees the CPAs practicing in that state.
Enrolled Agent (EA). An EA is the gold standard for an accountant who specializes in taxation. Like a CPA license, an EA has unlimited rights to represent taxpayers before the IRS after passing an exam.
What a small business accountant can do for your business
It’s perfectly fine to consider the cost when deciding if or when to hire an accountant. But another question you may want to ask yourself is, “What’s the cost to your small business of NOT hiring an accountant?”
You may initially be apprehensive when you see the price tag to hire an accountant. But have you ever thought about the alternative? Here are some of the important ways that an accountant can help your business.
Where to find a small business accountant
Now that you have a good idea of the cost of hiring an accountant and the value they bring to the table, the next question you may ask is, “How do I find the right accountant for my business?” Here are several suggestions.
Find your small business accountant today!
From bookkeeping and taxes to preparing financial statements, 1-800Accountant's suite of professional accounting services is purpose-built for small businesses. Our CPAs have over 17 years of experience, on average, and cater to established and emerging industries in all 50 states.
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This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. 1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein.