Founded by a former IRS Agent

Founded by a former IRS Agent

The True Cost of a CPA for a Small Business

September 18, 2015

Private: The True Cost of a CPA for a Small Business

Many small business owners wonder: “How much does a CPA charge for a small business?” and there is a lot of confusion surrounding this question, especially when it comes to what a business can expect or how much individual services will cost them. Basically, when it comes to small business accountants or CPAs, there are three tiers of service that a small business can choose from:

Accounting Assistant Or Accounting Clerk

Accounting Assistant or Accounting Clerk, also called a data entry accountant. You can expect the following services at this level:

  • Data Entry
  • Accounts Receivable
  • Bank Reconciliations
  • Credit Card Reconciliations
  • Payroll Entry

It takes a significant amount of time to do quality data entry, so it is a worthwhile investment to make for your business. However, this person may not understand what they are entering or fix problems that come up during the data entry process.

You can expect to pay $25-$40/hr for someone in this position.

Professional Bookkeeper/Accountant

Professional Bookkeeper/Accountant. Someone with the above experience and capability, and also:

  • Payroll Processing
  • Adjusting Entries
  • Monthly/Quarterly/Yearly Closing
  • Unaudited Financial Statements
  • Quarterly Payroll Returns
  • State and City Business Tax Returns
  • Year-End Reporting and Clean-Up
  • Custom Reporting
  • Income Tax Returns

Not all bookkeepers will do income tax returns. Many small business owners utilize this option as often as they are able because they want to get as much done as possible without spending too much money. Many professionals with this position can do everything for your business except the taxes, at great savings to your business.

Expect to pay $40-$100/hr for someone in this position.

Certified Public Accountant (CPA)

Certified Public Accountant (CPA). Someone with the above experience and capability, and possibly including:

  • Income Tax Returns
  • Audited Financial Statements
  • Budget and Forecasting
  • Tax Advising
  • Auidts

Expect to pay $150-$300/hr for someone in this position.

Many small businesses use all three levels of expertise managing the accounting. It is not advised to just use the least expensive option just to try and save money. Many small businesses will end up paying double (or more) for mistakes made by going with the least expensive option for their business accounting needs.

Spending money on an experienced CPA is well worth it, as it will ensure that you get all of your services completed accurately and efficiently by an experienced accountant, and hopefully Pogosian & Company, CPA is your first choice when it comes to CPA services in Glendale and throughout Los Angeles county.

It’s time to schedule an appointment with Pogosian Nazaryan & Company.