How Much does a CPA Cost Per Month?

The Milestone Team December 28, 2021
How Much does a CPA Cost Per Month?

Outsourcing non-core business functions have become increasingly popular as technology improves and businesses realize the benefits of focusing on core competencies. In fact, accounting tasks are some of the most popular functions to outsource, in addition to the  50% of small businesses that outsource payroll

Accounting can be a hassle for busy executives, and you may be looking into engaging a Certified Public Accountant (CPA) to handle these tasks. Let’s take a look at the costs associated with outsourcing accounting functions to a CPA and look at how this solution could work for you. 

How Much does a CPA Cost Per Month?

On average, monthly outsourced CPA services costs can range between $1,000 to $12,000 per month, depending on the functions you are looking to outsource and the time involved.

Of course, this depends on your industry, the complexity of the functions you need assistance with, and the size of your business. These averages can vary greatly, so take that into account while doing your research. 

What is an Hourly Rate for a CPA?

A CPA has more education than a traditional accountant and has passed a licensing exam in order to carry this title. Depending on your location, a CPA could cost somewhere between $250 to $500 per hour. CPA charge fees vary depending on the type of billing a CPA decides upon, and the level of service and expertise that they bring to the table. 

Some CPAs use an individual fee schedule, which is simply a list of each type of function and how much each costs. Others use an hourly rate or a fixed price for all services to be rendered. Intuit, the company behind QuickBooks, found that only 57% of accounting professionals bill by the hour. Essentially, the hourly rate will vary, and you should be looking for rates that are commensurate with accounting professionals in your region. 

How Much Should I Pay an Accountant for My Small Business?

You may have recently typed in “small business accountant near me” or “accounting services fees” and asked google for a nice neat answer. Unfortunately, there is no “one size fits all quote” because every business is different. The best way to determine how much you should pay an accountant would be to get quotes from outsourced accounting firms.

One study done by SCORE found that 46% of small businesses spend $5,000 to $20,000 on accounting functions yearly. There is no “right amount” however—the right price to pay is the one that secures you an experienced, reliable accounting function that will take your accounting to the next level and help your business grow successfully. It is worth mentioning; most small businesses can find professional month-to-month accounting services at an outsourced accounting company without the CPA certification. CPAs are necessary for complex tax scenarios, not month-to-month accounting needs for small businesses. 

Is Outsourcing a CPA Worth It? 

Did you know that 21% of small business owners have minimal or no knowledge of bookkeeping and monthly accounting? This stat was gathered in a survey conducted by Wasp Barcode, which also found that business owners ranked “accountant” as the most important professional for their business. 

Accounting can be a complicated, tedious chore for those who don’t understand it or simply don’t want to deal with it. In fact, one survey found that 35% of self-employed contractors stress out about making an accounting mistake. 

Outsourcing your accounting functions gives you access to expertise and practical accounting knowledge that you might otherwise not be able to afford or utilize. You can eliminate the headache of completing these tasks and avoid the worry that you’re not doing them correctly by outsourcing these functions. 

Another major benefit of outsourcing accounting services is the opportunity to reduce overhead and cut your costs. At Milestone, our accounting packages start at just $250 per month and are fully customizable to meet your unique needs. 

Partner with Milestone and Outsource Your Accounting with Confidence!

An important piece of this puzzle is finding an outsourced accounting service provider that you can trust and rely on. The appeal of outsourcing is access to expertise and reduction of costs, but finding a reliable provider can be difficult. Here at Milestone, we understand your concerns. We know small businesses because our founders started their own small businesses and work with entrepreneurs every day. You won’t find a typical professional service firm at Milestone—instead, you’ll find engaged professionals who view themselves as your partners and teammates and are dedicated to helping you be as successful as you can be. 

Outsourcing accounting functions is a big decision and could be the right fit for your business. We are always willing to talk about your unique needs and look forward to hearing from you. Contact us today to get started with hassle-free accounting services.

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