Well, there cannot be a one-word answer to this question. It depends. Almost all personal tax accountants, Certified Public Accountants (CPAs) and chartered accountants charge on an hourly basis. Whereas, some accountants charge on the basis of the service provided and the specific business needs of the company that is receiving the service. Well, the average fee hovers anywhere between $30-$150 per hour, again depending on the type and complexity of accounting services offered. The pricing is also dependent on experience, qualification, certification, location of the business/organization and precise job description. So, when you go on to calculate the total cost of hiring a personal tax accountant, a tax preparer or a CPA, it is a variety of factors, including overall workload, fees of the accountant or accountancy firm, and how often a business entity requires its services.
Small to midsize business enterprises are often hesitant in hiring the services of an accountant, as they want to save on costs and expenditures. Instead, they prefer buying accounting software for carrying out the same task as an accountant does, provided their accounts team or department has the knowledge of working on such a machine model or system. For that, one needs to have basic accounting knowledge, if it is about an individual. But, if it’s a complex and extensive accounting process involving lots of bottlenecks, it is always advised to hire a physical expert or a tax accounting firm that has professionals who can also offer consultancy services and financial advice on how to manage their taxes. And, there are business partners like “Ageras” that can easily help you connect with some of the leading Certified Public Accountants (CPAs) and chartered accountancy firms, by providing 100% FREE quotes.
Knowing Whether your Business Needs An Accountant
It is important to understand whether a business needs an accounting service, in order to determine the specific type of service required, which eventually helps in the hiring process. An accountant not only manages and effectively handles all your corporate accounting hassles, but also saves a lot of time. In this way, you can solely focus on your core business/company deliverables. This is why every business owner must know how much a CPA cost in the US when hiring one for a specific role, as required in a company or an organization. Some important services performed by a CPA include:
- Processing financial statements & records
- Tax accounting
- Tax Preparation
- Forensic Accounting
- Financial planning
- Financial consultancy
- IRS audit preparation
- Filing taxes
- Managing bookkeeping
If you’re using accounting software to manage your company’s financial processes, then you must have some amount of basic accounting experience and skills. But, the role of a Certified Public Accountant (CPA) is indispensable, as one such professional helps in auditing finances, preparing taxes, filing returns and collecting business taxes. So, on average, you’re going to spend well over 60 hours every month, if you’re doing the business accounting by yourself. Therefore, the role played by a CPA becomes quintessential for managing bookkeeping, handling taxes, offering financial advice and maintaining financial records.
The Average Cost of Hiring an Accountant in the US?
Let’s straight away dive into this subject, how much would it cost to hire an accountant in the US? Whether it is a personal tax accountant, chartered accountant, Certified Public Accountant or forensic accountant, it is totally dependent on the location of the organization, job role, overall experience of the accountant and the fee that the accountancy firm charges on an hourly basis. Based on these key factors, the average cost is calculated. The hourly rate for hiring an accountant in the US, somewhere starts at $40 per hour. And, depending upon the qualification, certification, experience and role, the average charges may increase or decrease. It is really difficult to conclude, how much a personal tax accountant or a CPA is going to charge a particular client or his/her business.
Though the charges are not fixed every time, the overall cost is estimated on the frequency of service and type of work (job role/job specification). If it is a complicated task like financial audits or preparing for IRS audits by external tax auditors, the charges might increase in such a complex job scenario. If you’re a small business, hiring a personal tax accountant would do, wherein you only need to pay the accountant an hourly fee of approximately $150 per hour. Whereas, if you happen to be a medium to big size organization, you then need to hire the services of a Certified Public Accountant (CPA) that can charge anywhere between $500 – $600 per hour.
The cost also differs from one accountant to the other. For instance, a newly passed out tax account’s fee would certainly differ from that of a seasoned CPA, who would obviously charge a higher rate, simply because of the experience and qualification. Similarly, the price of hiring an experienced tax accountant would also be higher when compared to that of a petty bookkeeper. This is how it usually works. However, most accounting professionals and firms charge on an hourly basis and also on a service rate basis.
So, if you’re thinking about hiring a Certified Public Accountant (CPA), you should be aware that the average rates of an accountant are calculated based on various factors. It usually depends on the type and size of the business, the nature of the accounting project and the overall experience of the accountancy firm. You can either look for close corporate referrals or search online, by browsing the web. But, if you still want expert help in finding out the most professional tax accountant or CPA in your city, there are reputable agencies like “Ageras” that can easily help you find your perfect tax accountant, by providing you with competitive business quotes. In this way, you can find a specialized accounting firm or a chartered accountant that can handle your entire financial, audit & tax-related matters in the most professional way. As a matter of fact, you can also look through the Yellow Pages, local business listings & directories of CPAs from the American Institute of Public Accountants.