As a business continues to grow, lots of financial transactions have to be recorded. Financial statements become too intricate. When taxes get too complex and the task of recording financial transactions and other details get too tedious, having an accountant is very essential. Whether it is a small or a large business, getting a reliable and highly skilled accountant will always be an asset to the business owner. How much does an accountant cost? When it comes to accounting fees, there are various factors that affect the costs.
Average Cost of an Accountant
Accountants would charge accounting fees of about $150 or more per hour. The average cost of an accountant varies depending on the size of the firm, location and type of work. For instance, if you hire an associate with lesser experience for your bookkeeping services, the cost ranges from $30 to $50 which is slightly lower. Then again, it is important to note that accounting fees in general would actually depend on the kind of project/work. For instance if it is a huge project, the average cost of an accountant can go as high as $25,000. How much does an accountant cost for less complex works? The rates would greatly vary. Even location can affect the rates. You can expect lower cost in the rural towns compared to metropolitan areas. For example, if you just need an accountant who can help you with your filing of personal income tax, the cost can even be less than $100. Doing such work especially for accountants who are really skilled and experienced at handling these tasks can allot a few hours to prepare and finish the tax return.
What Are Included?
Accountants do different work apart from just recording numbers or preparing financial reports. They also work as management consultant where they provide advice. Since they are knowledgeable and skilled, they are experts in turning your financial data into valuable business information that can help the business. For instance, if you are starting a business, an accountant can help you determine that most suitable structure for your business. They also aid in other works like preparing tax returns, setting up accounting system, preparing financial reports, cash flow management, internal controls, auditing, etc. Certified public accountants are not just ordinary accountants. They took rigorous tests and training before they can work as a CPA.
Should You Hire an Accountant?
Aside from the question, how much does an accountant cost? Should you hire an accountant? There are several reasons why you should hire an accountant. Whether it is just a business startup or the business is already established, hiring an accountant can help your business in so many ways. When you have an accountant, your life is much easier. You do not necessarily have to hire a full time accountant if you will like there is no need to. So, why should you hire an accountant? There are several reasons why you should hire one.
First is accountants are experts when it comes to business structures. If you are just starting a business, you need an expert advice as to which is the best business structure. Will you opt for sole proprietorship? Limited liability partnership? Corporations? Accountants can provide you with a sound advice as to which business structures would fit your business type.
When it comes to helping and managing finances, an accountant can surely help you in that area. Even the finances and transactions of small businesses can be quite complex especially if you do everything on your own. But if you have an accountant, you do not lose control. Your accountant can help you track the expenses, record the deals and other financial transactions.
When you have to deal with the daunting government paperworks, you should hire an accountant especially when the tax filing is due. There are too many financial transactions and details that only a financial expert can do. So, even if you will have to shoulder the cost of hiring, there are other benefits and advantages that you can get in hiring an accountant. From doing the yearly statements of accounts, maintaining financial records, handling payroll to ensuring that the business is following tax laws, having a reliable accountant can be a tremendous help and asset to your business.
Choosing an Accountant
Hiring a competitive, reliable and skilled accountant can definitely help your business. If you are in need of one, there are various ways to choose a good one. You can ask for a referral from your lawyer, business colleague or banker. There is the Society of Certified Public Accountants. Most accountants would for big companies. But there are also accountants that are freelancers and would work for small businesses.
When you have finally sorted the choices and you now have a list of good candidates, the next step in the process is to interview the candidates. Take the time to get to know them, their education, experience, training and their personality. Your choice of an accountant would depend on what you need. For instance, do you need an accountant for management consulting? Bookkeeping? Every business owner varies when it comes to their need of an accountant.
Another factor that you have to take into consideration is the personality. Since you will be working with your accountant, it helps that you like his working style and you can work together professional. Through the interview, you get the chance to get to know about the candidate. Based on your criteria, you can choose which candidate suits your requirements.
Some may opt not to hire an accountant since using a tax software can reduce cost. But if your business is continuously growing, there will come a time when you really need a full time accountant who can help you with all the work.