How much will a CPA cost for an SMB?
Using an accountant for your SMB can save you time, energy, and the stress that comes with trying to get a business up and running while managing the financial side of things at the same time, especially if that’s not your speciality.
Enlisting the services of an accountant can be beneficial when it comes to helping you choose a business structure as well as helping to create your business plan, a necessity for decision-making and attracting potential investors. An accountant can help you choose small business loan services if you need them. If you encounter problems with your revenue, an accountant can offer the financial expertise to help you find a solution.
While the duties of an accountant will vary from business to business, in general, they will involve:
- Data management
- Financial analysis and consultation
- Financial reports
- Regulatory and tax compliance
Before you make the decision to transfer your books to an accountant, you need to do your due diligence regarding how much a CPA costs. The cost range of hiring an accountant for your SMB depends upon the size of your business, your industry, the type of work required of the accountant, the complexity of tax preparation involved, and if you want your accountant to also provide bookkeeping services.
Other factors that influence the cost of hiring an accountant include his or her experiences and skill level, as well as the location of your business.
A better question…
Many small business owners forgo hiring an accountant because they don’t want the added expenses of accountant fees and administrative costs, especially if they’re just starting out. But, perhaps you should consider how much it will cost your business to not hire a CPA.
According to the 2019 Onpay Small Business Finance and HR Report, approximately 28% of small businesses have been audited by or have received a formal notice from the IRS. Preparing for and going through an IRS audit can be very time-consuming and anxiety-producing. If you have an accountant, you can eliminate the stress that comes with an audit and free up your time to run and grow your business.
An accountant can help you avoid costly mistakes such as mixing your personal and business finances, not receiving payments on time or planning for unforeseen expenses, clerical errors in your financial records, or having outdated financial records.
In the long run, the cost of CPA fees is outweighed by the savings over time you’ll get by avoiding costly mistakes and potential fines.
Making the call
When it comes to making the decision to hire an accountant for your SMB, consider the knowledge and financial guidance that an experienced CPA can provide in both the short- and long-term vs CPA costs and fees. The time you’re spending on financial and accounting functions could be put to better use serving your customers or clients, building your team, and growing your business.
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