There’s no question that an accountant can help you keep your finances in order and handle tasks like tax preparation and catch-up bookkeeping. The question is whether it’s worth the cost.
Although accounting costs can be significant, inaccurate or disorganized financial records can be a greater burden. After taking an outside investment and forming multiple business entities, Canyon Coffee cofounders Ally Walsh and Casey Wojtalewicz brought in a skilled accountant to keep their financial records accurate, which they discuss on an episode of Shopify Masters.
Read on to learn how much an accountant costs, what an accountant does, the fee structures accounting services use, and the key factors that influence accountant pricing.
How much does an accountant cost?
The cost of an accountant depends on your business size, transaction volume, and the complexity of your business taxes. A business owner hiring a professional for a one-time business return during tax season will face a different fee structure than a multistate brand requiring ongoing support and full-service accounting.
To make informed decisions, it’s helpful to look at how many accountants structure their pricing:
| Fee structure | Estimated average rates | Best for |
| Hourly rate | $150 to $400+ per hour | One-off consulting, complex tax planning, temporary cleanup work |
| Monthly rate | $300 to $2,500+ per month | Ongoing monthly bookkeeping, payroll support, routine financial reports |
| Project-based fee | $1,000 to $5,000+ per project | Accounting software setup, catch-up bookkeeping, system migrations |
| Annual tax fee | $500 to $3,000+ per return | Corporate business tax returns, sales tax filings, year-end tax planning |
Here’s a closer look at each fee structure:
Hourly rate
Accountants who provide industry-specific tax advice or help develop a financial strategy for your business usually charge an hourly rate. A certified public accountant (CPA) or a skilled accountant at a full-service accounting firm costs between $150 and $400 per hour. If your business needs involve complex cross-border issues or advanced tax planning to maximize tax savings, those hourly rates can climb even higher.
Monthly rate
For consistent support, many businesses prefer a fixed monthly rate for bookkeeping services. Basic bookkeeping services—which include categorizing transactions, reconciling bank accounts, and updating financial statements—range from $300 to $800 per month for low-volume small businesses.
However, if your business requires full-service bookkeeping, including inventory tracking and accounts payable management, monthly fees can range from $1,000 to $2,500 or more.
Project-based fee
Project-based accountant pricing is standard when a business owner has a defined, one-off project. For example, if your financial records are disorganized, an accountant may charge a flat project fee for catch-up bookkeeping or extensive cleanup work. Setting up new accounting software, integrating systems, or mapping out a new inventory tracking system typically costs between $1,000 and $5,000, depending on the scope of the business needs.
Annual tax fee
When tax time arrives, having a professional prepare your business tax returns can prevent costly errors. For a sole proprietorship, annual tax preparation might cost between $500 and $1,200. For corporations, multistate enterprises, or businesses with complex payroll taxes, a tax accountant will typically charge between $1,500 and $3,500 or more to prepare and file a corporate business return.
Typical accounting services
Accounting firms offer a range of financial management services, including:
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Basic bookkeeping. This involves recording daily cash flow, matching and paying bills, issuing invoices, balancing and reconciling bank accounts, and categorizing transactions to ensure that your records are accurate before tax season arrives.
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Payroll support. Accountants handle employee payroll, distribute year-end forms, and ensure that your business complies with local, state, and federal payroll taxes.
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Financial statement preparation. To secure funding, bring in investors, or understand your net margins, you need accurate financial statements. An accountant provides regular financial reports, including balance sheets, income statements, and cash flow analyses.
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Tax planning and preparation. Beyond filing a tax return, a tax accountant finds tax savings and ensures compliance across multiple jurisdictions, if necessary.
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Financial strategy and insights. High-level accounting services offer financial insights that guide your long-term operations. They help you evaluate pricing, forecast seasonal inventory needs, and make informed decisions about expansion or promoting product lines.
What factors affect accountant costs?
- Business size and transaction volume
- Credentials and firm structure
- Complexity of the industry or business
- Ongoing support vs. cleanup
- State of your business
Accountant pricing is rarely fixed. When you begin a free consultation with a full-service accounting firm or an independent practitioner, they evaluate several key factors to determine your price quote.
Business size and transaction volume
The volume of financial data your business generates is one of the primary drivers of accounting costs. A small business processing 50 transactions a month requires far less work to reconcile than an ecommerce brand processing thousands of transactions. As your transaction volume grows, the hours required for monthly bookkeeping rise accordingly.
Credentials and firm structure
Professional credentials influence how much accountants charge. A basic bookkeeper focuses on data entry and organizing financial records, making them a cost-effective choice for daily maintenance. A CPA or a full-service accounting firm brings advanced legal, regulatory, and strategic expertise to the table, which commands a premium price.
Complexity of the industry or business
Operating an ecommerce store that sells across multiple states or international borders introduces accounting complexity. Dealing with disparate sales tax laws or operating multiple corporate entities increases the time required to maintain your financial records.
Ongoing support vs. cleanup
Engaging an accounting professional for consistent, ongoing support lets them establish efficient workflows, which often result in predictable, fixed monthly fees. On the other hand, approaching an accountant at the last minute with a shoebox full of unreconciled receipts for emergency cleanup work or catch-up bookkeeping right before tax time will likely result in higher hourly rates.
State of your business
The financial requirements of a startup are different from those of an established, growing business. A startup may need only accounting software and basic bookkeeping services to stay organized. However, an established business looking to expand overseas requires complex financial management and hands-on operational forecasting.
How to reduce your accountant costs
- Automate transaction tracking with direct integrations
- Centralize vendor management
- Use your administrative dashboard
- Prepare financial reports before tax season
Although hiring an accountant can be a smart investment, they aren’t always necessary for basic data entry or administrative work. A few best practices can help you get the most out of your spending, so your financial professional spends their billable hours on high-value tax planning and financial strategy rather than hunting down missing invoices.
Automate transaction tracking with direct integrations
Paying an accountant to manually export thousands of digital orders is an expensive use of their time. By implementing the QuickBooks Online integration for Shopify, you can automatically sync Shopify transactions. This connection categorizes your sales, returns, and taxes, reducing the billable hours your accountant would otherwise spend on basic bookkeeping services.
Centralize vendor management
Disorganized bills can require your accountant to spend hours performing cross-checks. Using Shopify Bill Pay lets small business owners manage vendor bills directly from their admin dashboard.
Use your admin dashboard
Before scheduling a costly meeting with your accountant to review basic numbers, check your internal data. The finance overview in Shopify admin offers business owners a comprehensive view of payouts, balances outstanding, and associated accounts. Instead of paying an accountant to compile cash flow summaries, you can export them yourself.
Prepare financial reports before tax season
You can cut your accounting fees during tax season by delivering clean reports. Instead of paying an accounting firm to extract raw data, use Shopify’s finance reports. You can compile and share financial reports with your tax accountant in seconds, giving them immediate access to the numbers they need for year-end tax planning and corporate business tax returns.
Accountant cost FAQ
How much do accountants usually charge?
Accountant pricing varies widely based on the specific services required. For basic bookkeeping services, small business owners typically pay a fixed monthly rate of $300 to $800. For complex consulting or year-end tax planning, a skilled accountant or CPA generally charges an hourly rate ranging from $150 to $400 or more per hour.
Is a CPA better than an accountant?
A certified public accountant (CPA) is a designation that requires passing a rigorous exam and maintaining state licensing requirements. Although all CPAs are accountants, not all accountants are CPAs. A bookkeeper or general accountant often is cost-effective for daily financial management and basic bookkeeping, but a CPA is needed for complex corporate business tax returns, audits, and multistate compliance issues.
Is it worth using an accountant?
Hiring an accountant is widely considered a smart investment for growing businesses. Although it represents an upfront cost, a good accountant can save you time, uncover substantial tax savings, and protect your business from costly compliance audits. Delegating oversight of your financial records to an expert lets you focus on improving and expanding your business operations.
