Hiring an accountant can mean very different things depending on how your business is structured and how much support you actually need. Some small businesses overpay by hiring too early. Others underinvest and face tax issues compliance problems or expensive cleanup later. This guide breaks down the real cost of hiring an accountant, compares in house and outsourced options, and helps you choose the right level of support for your stage of growth.
What “Hiring an Accountant” Actually Means
Many small businesses assume hiring an accountant means bringing on a full time employee.
In reality, accountant support usually falls into three categories:
In house accountant- Outsourced accountant services
- CPA only or periodic accountant review
Each option has very different costs and responsibilities. Understanding these differences is the first step to avoiding unnecessary expense.
Cost of an In House Accountant
Hiring an in house accountant is the most expensive option and often unnecessary for small businesses.
Typical annual costs include:
- Base salary between $60,000 and $90,000
- Payroll taxes benefits and insurance
- Onboarding and management time
- Limited flexibility as workload fluctuates
For many businesses, the volume of work does not justify a full time accountant. Much of the day to day work still requires bookkeeping support, meaning you often end up paying for two roles.
Cost of Outsourced Accountant Services
Outsourced accountant services provide professional oversight without the cost of a full time hire.
- $200 to $600 per month for accountant review layered on bookkeeping
- Higher tiers for complex reporting multi entity or advisory needs
- Scales up or down as your business changes
Typical pricing ranges:
Outsourcing allows you to pay only for the level of expertise you need while maintaining consistent financial accuracy.
Cost of CPA Only or Periodic Accountant Support
Some businesses rely solely on a CPA or accountant during tax season.
- Annual or quarterly review fees
- Separate charges for cleanup or corrections
- Limited visibility outside tax filing periods
Typical costs include:
This approach often appears cheaper at first but can lead to higher long term costs if bookkeeping is not maintained throughout the year.
In House vs Outsourced Accountant Cost Comparison
In house accountant
- Highest fixed cost
- Requires management and oversight
- Best suited for larger or highly complex organizations
Outsourced accountant
- Predictable monthly pricing
- Flexible and scalable
- Ideal for most small and mid sized businesses
CPA only support
- Lowest upfront cost
- Reactive rather than proactive
- Often leads to cleanup and rework expenses
For most small businesses, outsourced accountant support layered on top of bookkeeping delivers the best balance of cost control and financial accuracy.
What Impacts the Cost of Accountant Services
Several factors influence how much accountant support costs:
- Monthly transaction volume
- Number of bank and credit card accountss
- Business structure and entity count
- Payroll sales tax or inventory complexity
- Reporting requirements for lenders or investors
As complexity increases, accountant oversight becomes more valuable, but that does not mean you need a full time hire.
When Paying for an Accountant Saves You Money
- Financial errors are caught early
- Books are kept tax ready year round
- Compliance issues are avoided
- Cleanup projects are prevented
An accountant can reduce overall costs when:
Businesses that delay accountant involvement often pay more later through penalties missed deductions or rushed year end fixes.
The Most Cost Effective Setup for Small Businesses
- A dedicated bookkeeper handling day to day transactionsl
- Periodic accountant review for accuracy compliance and guidance
- CPA involvement only when filing or planning is required
For most small businesses, the most cost effective structure is:
This layered approach delivers professional oversight without unnecessary payroll expense.
Not sure how much accountant support your business actually needs.
Request a free bookkeeping review and get a clear recommendation based on your transaction volume complexity and growth stage.