If you do your own accounting and bookkeeping, you’re in good company. Many small business owners use accounting software to help them manage their receipts, invoices, and bank statements. Accurate accounting records help you maximize your tax deductions, track money coming in and out, and plan for the future. While larger companies may be able to afford salaried accountants on their payroll, not every business has that luxury. An accountant can help small business owners follow financial rules and regulations, explain financial statements, oversee payment processes, help them file their taxes correctly, and more. You can file taxes no matter where you live and have a few means of doing it. You can even hire a US-based professional and send them all the documents by secure email.

Most accountants charge their fees on an hourly basis or at a per service rate. The exact average for accountant hourly fees is difficult to identify and the number you find may be different based on the source. Bureau of Labor Statistics, the average accountant hourly fee is about $40. However, this number can be higher or lower depending on site and the accountant’s experience. Some costs and benefits are easier to quantify than others; in some cases, you’ll be using estimates or averages. This person may provide concierge services for your personal finances, including paying your bills, balancing your checkbook, and looking over your credit card statements.

How much do accountants cost?

Hourly rates are common, and they vary based on the accountant’s experience, training, and certifications. An accountant’s hourly rate can range from $150 to more than $400 per hour. Getting an accountant gives you access to professional advice and expertise. Plus, you can be confident that complex tax and accountancy tasks are being dealt with efficiently, keeping your business compliant. DIY accounting can be complicated, but it’s suitable if you’re a start-up or a very small business. It’s important to open up a business bank account so you can accurately separate your personal and business records to make things easier to document. If you run a start-up or small business, you may not need regular accountancy services.

Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Help you determine areas for growth by providing insight on cash flow patterns, inventory management, pricing, and business financing. Closing out your books and create financial reports at the end of the year. Explaining the importance of keeping personal and business expenses separate. Providing advice on how to track expenses during your daily business activities. Assisting with the financial analysis in your business plan.

Average Costs to Hire a Tax Accountant

Sometimes a small business just needs some help getting organized with their income and expenses. Maybe there’s not a tremendous amount of transactions , but little or none of it is being recorded properly. While accountants usually work for large companies, CPAs work for a variety of large and small businesses.

You still have to decide on itemized deductions and other criteria. But, all in all, tax sites make it easier to avoid IRS penalties by clearly explaining the topics at hand, along with the risks.

You’ll need an accountant to help with the finances

If you’re a sole proprietor with just a few 1099-MISC forms, your accountant should need less time to complete your tax return, but if you run a large business, you may need to wait a while. Regardless of your how to hire an accountant situation, even the busiest of accountants can relieve the time burden involved with filing your taxes yourself. Before you decide anything, first do a quick assessment of your company’s financial state.

CPAs—Certified Public Accountants—not only handle your bookkeeping tasks but can also help you grow your business. If you want to create a business plan, a qualified accountant can help you map out your finances so you can reach your goals, as well as aid you in making better financial projections. Accountants can also help you decide which type of accounting method you should use. Usually, new companies use this method to record revenue and expenses when a payment is made. However, sometimes, the IRS requires you to use accrual accounting if you sell a product or have inventory. With the accrual method, you document your income and expenses when they are billed instead of when you actually receive the money. You don’t want an accountant who is OK with lying to the IRS to save you money.