How Much Do Accounting Services Cost?
Management of one’s own accounting can become tedious, with this burden often inspiring more questions than answers. Questioning the cost of accounting services is natural, and this article will overview a few of the most commonly-associated questions about accounting:
- Is hiring an accountant worth it?;
- How do accountants set their rates?;
- Are small accounting firms cheaper?;
- What if another accountant has a better rate?
- Should I hire an accountant?
Is Hiring an Accountant Worth It?
Many companies do their own accounting because they believe hiring an accountant is beyond their budget. This usually ends up being a costly mistake that could have been avoided by outsourcing their accounting. The work of an accountant involves keeping and interpreting financial records, financial planning, and maintaining fiscal control for their clients. Oppositely, freedom from these time-intensive responsibilities is what makes an accountant the most appealing to a business owner.
How Do Accountants Set Their Rates?
Historically, accountants worked on an hourly-wage basis, but this is no longer common practice. The client or customers’ lack of control over the amount of hours worked is the main reason the practice of hourly wages has been phased out of the accounting industry. Currently, rates are based on a client-to-client or customer-to-customer basis depending on the scope of work needed. This is known as fixed price value billing.
What About the Cost of Small Accounting Firms?
The extent of services provided is the main factor of cost. Small accounting service rates will vary depending on how much or little work is necessary for the business. The qualifications and experience of the professional who is handling your accounting tasks is also a factor in the rate. Due diligence is imperative to ensure you’re working with someone who understands the process, can meet your needs, and wants to develop a long-term relationship with your company.
What if an Accountant is Charging Less?
Inexperience is usually the culprit when it comes to “cheaper” services being provided by another accountant. With remote work in extreme demand, new professionals are entering the industry every day. Consequently, it is imperative to perform your due diligence on an organization before hiring them—it is also recommended to ask them to complete an accounting test.
Should You Hire an Accountant?
Although it is recommended that every business hires an accountant, the question remains as to whether it would be more beneficial to hire someone in-house or outsource from an online accounting company. This question is easily answered by the scale of your operation. Outsourcing is optimal when businesses are in their growth stage because it frees up the management to focus on other areas while knowing their accounts remain compliant. Once your business’ revenue can sustain the salary of an in-house accountant, you should consider transitioning from outsourcing your accounting needs.
Is hiring an accountant worth it?
- Many believe its beyond their budget
- Costly mistake
How do accountants set their rates?
- Hourly wage phased out
- Client to client basis
What about the cost of small accounting firms?
- Extent of services provided
- Qualifications and experience
- Due diligence
What if an accountant is charging less?
- Remote work in high demand
Should you hire an accountant?
- Individual needs
- Scale of business