• New Wave Accountants

How Much Do Small Businesses Pay for Accounting and Bookkeeping Services?

As a small business owner who's still starting out, you are probably not too excited about the thought of spending money to keep track of your financial records. However, you also understand that it’s necessary. But how much do you need to set aside for the accounting costs for your small business?


The cost will be determined by how much accounting assistance you will need. To learn more about this, read on as we discuss this topic further:


How Much Will a Bookkeeper Cost?


According to Payscale (a website that provides information on income and compensation for different businesses and positions), a bookkeeper earns about $41,000 per annum on average. The average hourly rate is $16.67. Compared to an accountant, the salary of a bookkeeper is cheaper because they require no formal training. So if you only need help with bookkeeping, a bookkeeper might be a more economical choice.


However, you must still determine whether you need an in-house bookkeeper or outsource one. You must also decide between a full-time or a part-time bookkeeper. Once you know what you need, you can start scouting for a bookkeeper and find out their cost per hour.


How Much Will an Accountant Cost?


As you probably can tell, you won’t be able to come up with an exact figure and say that’s how much an accountant would cost a small business like yours every year. Several factors contribute to the cost of an accountant, including the details of your business, the necessary accounting services, and the rate charged by the accountant you hire.


Most accountants bill either hourly or service-based. This means an accountant can charge per hour of services, regardless of the task they’re doing, or charge you a flat rate for specific tasks, no matter how long it takes them to finish those. Typically, a business-specific accountant costs more than an everyday personal accountant.


CPAs may also charge higher due to their qualifications for specific tasks and the expertise they bring to the table.


Other Factors That Might Contribute to Accounting Costs


How much your accountant charges will depend on how much accounting assistance or bookkeeping you need from them. Some of the factors that contribute to their hourly rate are:


  • The type of clients they have

  • The tasks they have to perform

  • The level of expertise they have

  • The credentials they have

  • The size of the company they are doing accounting for


How much they charge depends on what they’re going to do for you and how long it would take them to handle those tasks. If they have to audit your business, they might charge more. If they provide the same service but work more hours to finish the job, they’ll have to charge more.


Conclusion


Determining the cost of accounting services for your small business depends on various factors. The most important factors that could affect the cost of your accounting services include your specific business and the tasks you want them to handle for you. You should also consider their credentials, their expertise, and their reputation.


As a small business owner, it is important that you understand that the cost of your accounting services will also be determined by how much accounting assistance you need from them. If you need someone to handle bookkeeping, you can hire a bookkeeper who will help you keep an eye on the money you make and the money you spend. If you already have a bookkeeper, you can hire a business-specific accountant to handle the financial record-keeping you need help with. If you have a huge business with complex accounting needs, you might want to hire a CPA instead.


New Wave Accounting offers end-to-end accounting and bookkeeping services to businesses on the Gold Coast. Allow our qualified accountants to help you grow your business. Contact us today to learn more about our services!





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