Every business wants to be economical and maximize profit. Hence a business owner might hesitate to hire an accountant, as there are many accounting software that could help your business, as long as you have basic accounting knowledge. As much as this software can help save unnecessary costs, you may miss out on crucial financial advice from an experienced accountant.
What does an accountant cost?
An accountant's charges can be per hour, or a service rate dependent on a business's needs. Accountant fees range from $30-$100—an accountant's cost is determined by the form of services offered. However, accountant fees may be based on experience, location of the business, and job requirements. Therefore, accounting service's total cost depends on the workload, accountant fees, and how frequently you need their services.
Why should you hire an accountant? Is there a difference an accountant will make in your business? If you decide to employ one, how much will it cost? Various reasons affect whether or not you need an accountant. The following reasons are why you need their services and how much it will typically cost to get a good business accountant.
Does my business need an accountant?
Considering if a business needs an accountant service is essential because it will help determine the type of services necessary for your business's success. Hiring an accountant will also help you save time while you focus on other aspects of the company. You can choose to hire a bookkeeper, a business accountant, or a certified public Accountant (CPA), all of which services depend on the work at hand.
The services of these professionals include:
- Generating financial statements
- Forensic accounting
- Tax planning advice
- Account auditing
- Preparing and filing business taxes
- Setting up bookkeeping as well as managing bookkeeping
- Providing business account to help you operate cost-effectively
The fundamental aspects of accounting encompass the use of accounting software along with necessary accounting skills. However, an accountant's help will be most beneficial in other core financial aspects like auditing finances and collecting business taxes. Can you imagine how many hours you will be spending monthly to handle your business accounting yourself, most likely over 60 hours?
An experienced accountant's assistance will help you with practical financial advice, bookkeeping, handling business taxes, maintaining financial records, etc. Whatever the reason you choose to hire a business accountant, you get the opportunity to focus on other business aspects. More so, you can choose if the accountant works monthly, quarterly, or annually with you, all of which depends on your business need.
What is the average cost for an accountant?
Although accountant cost is affected by location, the work to be done, the accountant's level and experience, and the accountant's fees, the Bureau of Labour Statistics states that on average, the rate per hour for an accountant in the U.S is $40. Since the government or any local laws do not regulate the accountant's cost, it will be difficult to conclude the specific amount an accountant will charge a business owner.
Of course, though not fixed, an accountant's cost could be estimated by a business owner depending frequently and type of work; if it will be a routine task or a tricky task as financial audits. The cost also depends on the kind of business. If you are running a small business, you should employ an accountant for small companies who would charge about $150 compared to an accountant charged $600 per hour due to its clientele which is big businesses.
The fees of an account could be above or below the overall rate of an accountant. Also, the costs vary from one accountant to another. For example, a newly qualified accountant's fees will be different from that of a CPA holder who will charge higher because of the extra effort to get accredited. Also, the prices of 27 years of experience accountant will be different from that of a bookkeeper. In all, most professionals of the field charge per hour or service rate.
Whatever choice of accountant you make, do the calculation, consider the need and size of your business, the type of project, and experience. Invest in finding an accountant and leverage on many accountants' free consultations to decide on your business's best. You can request referrals from close business associates or go online to do your research. You may want to ask for directories of CPAs from the American Institute of Certified Public Accountants.
What can you gain if you hire a business accountant?
Hiring a business accountant might seem unnecessary at first, especially with the existence of accounting software. But the advantages are far more significant. For most business taxes, problems are not new, but this is avoidable with the help of an accountant. You also get financial advice that will make you achieve your business goals—freedom to use your time to build your business without having to do the company's financial part. The decision to hire an account is worth it.
In conclusion, hiring an accountant is a crucial decision, and you have to be prudent. While it might not be easy to make this decision due to the cost, you might need to analyze your business to finalize your decision. The struggle to get an accountant is worth it as the services they provide will improve your business, protect your finance, and relieve tax problems.
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