Knowing the Average or Approximate Cost to Hire a CPA in the US

Well, there’s no ‘one-rate’, ‘one cost’ or ‘one charge’ for an accounting service, here in the US. It depends upon various factors, as well as on the pricing policy of the accounting service provider or firm. In a majority of situations, the charges are on a per-hour basis, or in some cases on a contractual basis, which is not so common. On an average, the fees of an accountant vary anywhere in-between $30 – $100, again depending on the type, exclusivity and complexity of services offered. Usually, the charges of a personal tax accountant, a tax preparer or a bookkeeper is always lower than that of a Certified Public Accountant (CPA), as the job description of a CPA demands higher accounting skills and covers an extensive gamut of audit & accounts work. The overall cost also depends on the experience of an accounting firm, its geographical location and your specific job requirements. The bottom-line is, the total cost of hiring an accountant (personal tax accountant or a CPA) depends on the overall workload, the job role/job description, the specific service performed and the accountant fee of the firm.

Can Accounting Software Be An Alternative?

Not at all! It is simply designed and programmed in a way to perform certain limited tasks and roles. In other words, it aids or helps in the accounting calculations, by reducing the complexity and vastness of work. That’s it! You cannot expect it to perform the role of a consultant or a tax advisor. So, if you’re thinking of saving upon costs, Accounting Software is definitely not an alternative to a professional or an accounting firm that has exceptional domain specific expertise, in accounts, tax, bookkeeping, payroll, financial consultancy and audit. In fact, every business owner, organization or company wants to save on cost and maximize profit. Therefore, they shy away from hiring an accountant, and instead opt for accounting software. But, this is only feasible, when you have basic accounting knowledge or idea. So, when it comes to critical financial advice and strategic business consultancy, it has to be a Certified Public Accountant (CPA) that has huge experience in tax, audit, finance and consultancy services. And, there are accounting service finding partners and agencies like “Ageras” that can help you find a certified CPA or personal tax accountant near you, by providing FREE quotes, so that you can compare and choose the best one.

Why Does A Business Need An Accountant?

Any small or big business need the services of an accountant, be it a tax accountant, cost accountant or a Certified Public Accountant (CPA) that help in measuring your financial position or financial standing in the market, based upon which you’re able to take future business decisions, regarding new investment, ramp-up, collaboration, new property purchase, hiring or disinvestment. It is also essential to save time and effort, which can be utilized in core business operations for maximizing profit. So, before knowing how much does a CPA cost to hire, it is better to have an idea as to why the services of a Certified Public Accountant or a tax accountant is required at any organization, big or small. These are some of the important reasons for hiring a CPA or a tax accountancy firm.

• Help prepare financial statements
• Helps in forensic accounting
• Tax planning, financial consultancy & business advice
• Help prepare for an external or IRS tax audit
• Help in yearly tax preparation and filing of Income Tax (IT) returns
• Helps in effectively managing bookkeeping and final accounts book
• Perform internal audits and maintain a clean financial transaction record

The Specific Role of an Accountant

Well, when it comes to core financial aspects like auditing taxes, finances and collecting business taxes, it is a fully certified cost and tax accountant that comes in handy. An accounting software can only handle the calculation part, but when it comes to making forensic assessments, doing tax planning, audition and preparing for filing income tax returns, only an expert accountant is able to seamlessly work according to the situational needs. On the other hand, it is not possible for you to sit for hours and look into the aspect of your business accounting, by knowing all the latest tax rules & regulation, apart from concentrating on your core business deliverables and production activities. This is when the need for hiring the services of a CPA is felt, in order to save time, effort and minimize the hassles. You wouldn’t want to spend 15-20 hours in a week, looking into your taxes and financial statements. What’s more, a CPA or a personal tax accountant can provide you with professional financial consultancy, tax advice, bookkeeping and maintaining accurate financial records of your company, organization or business. The main idea or motive behind hiring a business accountant is to solely focus on your core company activities. Now, you can hire one such professional or firm on a monthly or yearly basis.

The Average Cost of an Accountant

Without wasting any time, let’s straightaway dive into the question, as to how much an accountant costs to hire, here in the US? Well, it mainly depends on the geographical location of the accountancy firm, the job description & job role to be performed, the overall experience of the accountant and the fee of the accountant or firm. As per the Bureau of Labor Statistics, the average rate of an accountant per hour in the US is $40. Since, there’s no regulation on the fees of an accountant here in the US, it is somewhat difficult to specify the exact amount that a Certified Public Accountant (CPA) or a personal tax accountant would charge. It all depends upon the type & complexity of accounting service, and how frequently it is required. The cost also depends on the type of business and the specific type of accounting work. If it is a small business, you can always hire a personal accountant that would charge something around $150 per hour, whereas if you’re a big organization with a sizable employee strength, an accountancy firm or a CPA might charge you anywhere in the range of $500 – $650 per hour. It again fluctuates upon various factors.

Final Words

The fee structure of a CPA would always be above the rates charged by a personal tax accountant, as a Certified Public Accountant holds a higher degree, has got extra accreditations, certifications, skills and can perform a gamut of accounting services. Overall, the cost of hiring an accountant for your business or individual needs is always calculated on an hourly basis, rather than on contractual terms. It is certain that a CPA will obviously charge more than a bookkeeper or a tax preparer, as his/hers work domain is much vast and extensive. So, depending upon your size of business and complexity of work, you need to research upon the right accounting professional or an accountancy firm.