How Much Does an Accountant Cost in 2024?
We get it – you want to save on costs as much as possible. So, if you can do some of your company’s accounting work, you would, right?
But that’s not always the best solution.
71% of businesses already outsource accounting work for convenience, expertise, and legal compliance. Moreover, around 37% of those outsourcing accounting services are small businesses.
So, why aren’t you?
As much as you want to handle everything independently, there’s a better and smarter way (where you can also save). We know it from experience. As remote staffing experts, we’ve helped hundreds of businesses connect with skilled talent.
Besides, studies show that multitasking causes more mistakes, retains less information, and lessens productivity, which you can’t risk as a growing business.
If you need more convincing, you’re on the right page! We can help you answer your questions.
Why Hire an Accountant?
Before we discuss how much an accountant costs, let’s break down why you need one first. Hiring an accountant of your own can be beneficial in many ways, especially if you're a business owner or have a complex financial situation.
1. Expertise and knowledge
Accountants are professionals with the knowledge and expertise to handle financial matters. From staying updated with tax laws to understanding complex accounting principles, their expertise ensures that your financial activities align with legal requirements and best practices.
2. Time and efficiency
Managing finances can be time-consuming. It can take away the attention you should pour into your core business operations.
With a trusted accountant to streamline these financial tasks, you can focus on what you do best – whether growing your business or pursuing your personal goals. You can rest easy as your financial matters are in capable hands.
3. Strategic planning
Beyond number crunching, accountants contribute to strategic financial planning. They analyze your financial data to provide valuable insights, identify areas for improvement, and help you make informed decisions that set the stage for future success. Their role extends beyond bookkeeping, positioning them as strategic partners in your financial journey.
4. Business advice
An accountant can provide valuable business advice. They can help you with budgeting, forecasting, and cash flow management. They can also help you make informed decisions about investments, loans, and other financial matters.
A good example is recommending hiring offshore talent with remote staffing firms like MultiplyMii to save on costs. Not only do you get to tap the top 5% of Filipino experts, but you also get to enjoy benefits and other incentives.
Overall, hiring an accountant can provide many benefits. They can save you time and money and help you achieve your financial goals.
How Much Does an Accountant Cost?
Let’s discuss how accountants charge for their services to understand how much you can expect to pay.
Hourly rates
One of the most common ways accountants charge for their services is through hourly rates. According to AdvisoryHQ, the average hourly rate for an accountant is $37. This rate can vary depending on factors such as location and the type of services you require. For example, if you need a more experienced accountant, you can expect to pay a higher hourly rate.
Project rates
Another way accountants charge for their services is through project rates. It means they will provide you with a quote for the entire project rather than charging by the hour.
Project rates can be a good option if you have a specific project in mind, such as preparing your tax returns or setting up your bookkeeping system. Business Insider says the average cost of hiring an accountant for tax preparation is around $273.
Fixed or monthly fees
Some accountants may offer fixed or monthly fees for their services. It means you’ll have to pay a set amount each month or year for their services. In the US, an accountant's average annual salary is $78,000.
A fixed or monthly rate is a good option if you require ongoing accounting services, such as bookkeeping or payroll processing.
Want to save up to 80% on labor costs? Partner with a remote staffing company like MultiplyMii. We’ll help you build an accounting team minus the additional overhead!
When hiring an accountant, consider your budget and the type of services you require to make sure you get the best value for your money.
What Services Can an Accountant Provide?
Accountants can offer a range of services to help you grow your business. If you’re still on the fence about hiring one, take a look at how you can benefit from their expertise:
- They provide valuable insights into setting up an ideal business structure
When starting a business, one of the first decisions you must make is what type of business structure you want to use. An accountant can help you understand the pros and cons of each structure and choose the one that best suits your needs. They can also help you with each structure's legal and tax implications.
- They support you in establishing your business plan
A business plan is a roadmap for your business that outlines your goals, strategies, and financial projections. An accountant can give you a hand in creating a business plan that is realistic and achievable. They can also help you identify potential risks and opportunities.
- They ensure your business complies with tax laws and regulations
One of the most common reasons for hiring an accountant is to help with tax preparation. About 65% of businesses get full-time support in handling taxes.
With an accountant, you can make sure that your tax returns are accurate and filed on time. Hiring one saves you from penalties and interest charges. They can also help you maximize your tax deductions and credits.
- They help you save
Accountants aren't just number crunchers; they're money-saving experts. They help identify areas where you can cut costs, improve efficiency, and boost profits. Their insights can make a difference in your bottom line, allowing your business to thrive.
- They help develop financial goals and strategies
Beyond day-to-day tasks, an accountant can assist you in long-term planning. They can help set financial goals, create investment strategies, and develop a sustainable financial future for your business. With their guidance, make informed decisions that set the stage for long-term success.
Hiring an accountant is more than just managing numbers; it's about securing your business's financial health and longevity. From choosing the right structure to planning for the future, accountants provide support at every stage of your entrepreneurial journey.
Types of Accountants and Their Usual Rates
Is hiring an accountant that easy? It is when you know what type of accountant your business needs.
Here are some of the most common types of accountants and what you can expect to pay for their services.
The Certified Public Accountant (CPA)
Certified Public Accountants, commonly known as CPAs, are highly qualified professionals who play a crucial role in financial management. They go through rigorous education and training to obtain their certification.
What they do:
- Financial Audits: CPAs examine financial records to ensure accuracy and compliance with laws and regulations.
- Tax Services: They assist individuals and businesses in preparing tax returns, minimizing tax liabilities, and ensuring compliance with tax laws.
- Consulting: CPAs provide valuable financial advice to businesses, helping them make informed decisions.
How much they typically charge:
CPAs typically charge by the hour, and their rates can vary depending on their level of experience, location, and the complexity of their work. In the US, CPAs have a salary range of $2,900 to $10,500.
But if you hire a CPA in the Philippines, you can save up to 73%!
Find out how much you stand to save in creating your accounting team! Download our FREE salary guide.
Bookkeepers
Bookkeepers are the backbone of financial record-keeping for businesses. They handle day-to-day financial transactions, ensuring that records are accurate and up-to-date.
What they do:
- Record Keeping: Bookkeepers maintain accurate records of financial transactions, including expenses, income, and purchases.
- Bank Reconciliation: They reconcile bank statements with financial records to identify discrepancies.
- Financial Reports: Bookkeepers generate regular financial reports to help businesses understand their financial health.
How much they typically charge:
A locally hired bookkeeper in the US has a monthly salary ranging from $4,500 to $9,500. Some bookkeepers may also charge by the hour, averaging $19.44.
Other types of accountants
There are many other types of accountants, each with their specialties and areas of expertise. For example, an enrolled agent (EA) is a tax professional the IRS licenses to represent taxpayers in audits, appeals, and other tax-related matters. A financial analyst is an accountant who specializes in financial analysis and forecasting.
The fees for these accountants can vary, so it's important to research and compare rates before hiring one to ensure you're getting the best value for your money.
Have a Qualified Accounting Team Handle Your Finances
Entrust your financial matters to your very own qualified accounting team. It is not just a smart move – it's a game-changer for your business!
With MultiplyMii, a remote staffing company boasting over 100,000 pre-vetted candidates, you can find the perfect match for your business needs.
Have the peace of mind that comes with having a dedicated team of accounting professionals seamlessly managing your finances, allowing you to focus on what you do best.
So why settle for anything less?
Elevate your business to new heights! Book a discovery call with us today!
