If you’re fed up with trying to do your own books, you’re not alone. For many small business owners, accounting is definitely not their area of expertise. They know they’re probably making mistakes and missing opportunities that a pro would spot right away; but they don’t know if accounting services will save more than they cost.
To give you an idea of the pricing factors you’re likely to encounter, here’s a rundown of the options.
You will find a range of expertise levels, types of services offered, technology integration and industries or niches served. For example, a bookkeeper that does routine data entry charges less than a CPA who’s highly qualified to advise on business strategy or tax planning.
Traditionally, bookkeepers have charged an hourly rate; the more time they spend on your books, the more you have to pay. Typical rates are:
• Bookkeeper — $30 to $90 per hour
• CPA — $150 to $450 per hour
Per Engagement Fees
You may only need an accountant for an occasional project such as preparing your income tax return.
• Tax return (unincorporated) — $200 to $500
• Tax return (incorporated) — $800 to $1,800
• Financial statement — $1,000 to $2,500
• Audit — $2,000 to $5,000
Monthly Flat Fees
A very popular option with small businesses. Because it’s a standard amount every month, it’s easy to budget for; and it can cost less than half what you would pay an hourly accountant for the same amount of service. That’s why Xendoo offers this pricing structure to our clients.
Before You Hire an Accountant
Research the firms you’re considering to make sure they meet your needs and quality standards. Some things to consider:
• Credentials. Unlike professions like law or medicine, anyone can call themselves an accountant. Don’t just trust in a CPA certificate; check into certifications, education, training and years in practice.
• Service level. How often and how easy will it be to communicate with your accountant? Do you prefer to contact via telephone, email, an app or all of the above? How fast do you want a response — within 24 hours or some time next week?
• Processor vs. advisor. A processor type of accounting firm mainly provides data entry and reconciliation services. An advisor can help you analyze your financials to spot trends, challenges and opportunities for improvement.
• Specialization. Ideally, the firm you choose will have experience in your industry and the size of your business. An in-depth knowledge of the challenges you face adds value and insight to their services.
Xendoo specializes in providing expert accounting and bookkeeping services to small businesses. Because this is our niche, we can deliver tried-and-true expertise. And because we know small businesses need affordable pricing, we’ve leveraged state-of-the-art technology to reduce costs while maintaining gold standard quality.
If you’d like to learn more about our pricing and what you get for your money, please contact us today.