Do you need the services of an accountant? If so, one of your main questions is likely “how much does an accountant cost?”
Accountants are very handy when it comes to keeping track of your finances, especially if you’re running a business. The information that accountants provide can help you make sound and informed business decisions.
And, whether for business or personal reasons, accountants can also help you with your taxes. Especially if you have income from many sources, a good accountant can make your life a lot easier. And they can save you money by finding deductions you may not have known about.
So, what should you expect to pay for accounting services? Let’s talk more about this in detail below.
How Much Does an Accountant Cost?
Typically, you can hire an accountant for as little as $30 an hour or go all the way up to $300 per hour.
The costs are usually dictated by the size of your business, and what services your need the accountant to perform. The background and experience of an accounting professional also affects the price.
The size of the accounting firm matters too. Large firms tend to have the highest rates. While small or solo firms have lower rates.
For some services, an accountant may charge you by the hour. While in other situations, you may just pay a flat rate.
The national average cost of an accountant’s services is $50 per hour. Some accounting firms may offer you a free consultation to help you get a clearer picture of how much their services cost.
Different Accounting Services
There are various services you might need from an accountant. It could be that you need help with balancing your books, managing your accounts payable and receivable, preparing tax returns, and of course, preparing financial statements.
You can also hire an accountant for preparing/adjusting entries for future expenses and tax planning. They are also very helpful if you want a forecast on your business cash flow, and staying up to date with best business practices (financially) and regulations.
But most importantly, accountants are important to every business because they can provide you with an insight and give you advice on where to go forward for your business finances.
Tips for Hiring an Accountant
So, when should you seek an accountant’s services? Well, if your business is in a position to grow and/or cut costs, it may be a good idea to invest in an accountant’s services.
Also, if you don’t want to bother doing your own taxes for your household, you can get an accountant to handle that for you.
So, how do you go about hiring an accounting professional? We have created a quick guide to help you make decisions when hiring an accountant.
The first tip we can give you is to speak with multiple accountants and accounting firms. Usually, they offer a free consultation, so don’t be shy to ask for it. These free consultations will help you determine if a consultant, or a firm is the right fit for you and/or your business.
You need to have a clear budget in mind, too. You should know how much you’re willing to spend on professional accounting help before deciding. Understanding, of course, that a good accountant should save you money over the long haul.
Another tip we can give you is to create a list of your accounting needs and present these during your free consultation. This will help accountants get a clearer picture of what they can offer for you.
After a free consultation, accountants and firms will usually provide you with a list of what their costs are for the service(s) you need.
But you also need to make sure that there are no hidden fees, no extra costs, and whatnot. You want to figure out the explicit costs before you go into a business partnership with a firm or an accountant.