How much does a CPA cost in 2024? Understanding CPA fees, rates, and pricing

As you can see from the above examples, the CPA rates per hour vary depending on seniority within the company as well as the size of the firm itself. Smaller firms with lower gross earnings each year may charge an average CPA hourly rate between $30 and $50 per hour, depending on the tasks for which you hired them. Additionally, the average CPA hourly rate may fluctuate depending on the level of experience and training that a certified public accountant has. In their most recent survey that addresses the question, “How much do accountants charge?

How To Structure an Accountant’s Fees

Keep in mind that retained earnings balance sheet professionals hired by companies such as H&R Block or Liberty Tax Service are not always licensed CPAs and may not have extensive accounting backgrounds. While the CPA fee schedule has the potential to cost more than one of these options, you may find that you save more on your taxes by entrusting them to a certified public accountant. If you’re working with a CPA junior staff member, their hourly rate falls in the $60 to $120 per hour range, according to CostOwl. If you want someone with a little more experience, then accounting fees will go up by $40 to $80 per hour. Some accountants already include a single W-2 in their tax preparation fees.

• In addition to day-to-day accounting tasks, they can handle more complex and specialized work.
• As you might expect, the more complex and involved the work, the higher the hourly rate is likely to be.
• On the other hand, in less populated regions, such as in the South or Midwest, hourly rates for CPA services can be significantly lower, sometimes falling between $150 and $200​.
• Here are the average annual accountant salaries in the five biggest cities in the U.S.
• New business formation assistance like choosing entity structure, projections, and filings may cost $1,500-$4,000.

The average cost of tax preparation by CPAs by form

• The number will differ depending on a number of factors, but in the upcoming section, we will take a look at CPA rates per hour and examples of a possible CPA fee schedule.
• Consider it an investment in yourself, knowing that CPAs typically earn up to 15% more over the course of their careers than non-CPAs.
• For example, companies that need regular financial updates, budget forecasting, and compliance checks benefit from a retainer model that ensures consistent CPA support​.
• New client onboarding like choosing a business entity structure and filing formations runs $1,500-$4,000.
• If you’ve been wondering how much a CPA is for when tax season rolls around, this should give you a good overall picture.
• Take the next step and learn how to find a small business accountant.
• In addition to paying any domestic testing fees, you will also need to pay an additional $390 per section.

Ultimately, you should choose the option that best fits your needs and your budget, of course. Filing taxes independently is certainly a valid choice, but if hiring a CPA will reduce your stress and make tax season easier, it may well be worth the money. It how much does a cpa cost might feel like a big expense, but if you can afford it, involving a financial professional in your business can be a worthwhile investment.

Should Small Businesses Use a Tax Preparer?

Be sure to check your state’s CPA requirements to see if you need this. For CPA candidates outside the United States, you will need to choose a state Board of Accountancy that will declare you eligible, as some states do have residency and citizenship requirements. In addition to paying any domestic testing fees, you will also need to pay an additional $390 per section.

• Rates can reach as high as $800 per hour for CPAs from large firms that engage in highly specialized work.
• Their needs are naturally more complex and broader in scope than those of freelancers, and in many cases, they won’t have the resources for an in-house accounting team.
• If you don’t pass a section of the CPA Exam, you will need to retake it, which means you may have to repay a registration fee and the exam section fee.
• If they do need professional support, it will likely be more cost-effective to engage a regular tax accountant or bookkeeper — unless they have unusually complex issues to resolve.
• No matter why you might be interested in the cost of a CPA, our review will give you the information you need to know to avoid being overcharged.
• It is essential to remember that these are average fees; the cost will differ if parts of your tax filings are under exceptional cases and take longer for the accountant to complete.

The more complex and time-consuming a task is, the more the CPA will charge. A relatively simple tax return, for example, might take just an hour to prepare and file. An extensive audit of a business could take several weeks or even months Law Firm Accounts Receivable Management to complete.

Typical CPA Costs

• Many people are unable to pass one or more modules on their first attempt and must reapply to take the module over.
• Their expertise assists companies in complying with accounting regulations and optimizing finances.
• Of course, the number of hours billed by a CPA depends on the service, and is impacted by the level of organization of your files.
• For example, 58% of CPAs don’t charge a fee to file a tax return extension.
• An owner’s CPA cost per hour can range from $200 to $250, however in major cities and for top talent, hourly accounting fees for CPAs can go as high as $500 per hour.
• You’ll also need to track tasks like calculating capital gains, asset deductions, and fringe benefits tax.

For example, if you’re considering moving to another state, changing your legal relationship status, or bringing a partner into your business, ask a CPA for guidance. Fill out the form below to connect with a dedicated tax specialist who understands IRS compliance inside and out. While there are some basic financial tasks you can handle yourself, there are others that it’s best to leave to a professional. If your business is relatively small (or more of a side hustle), you may be able to handle your accounting on your own. The magic happens when our intuitive software and real, human support come together. Book a demo today to see what running your business is like with Bench.