Did you know that there are over 1.3 million accountants in the United States? When it comes to choosing an accountant for your business or personal wealth, you will have many different firms or individuals to choose from. Have you ever thought about how much it would cost you to hire a CPA or certified public accountant? Here are some of the cost breakdowns you can expect to pay.
Independent CPA or Firm?
In general, independent CPAs charge less than a firm. An independent CPA will likely have more flexibility and can work with you on a more personal basis.
However, CPA firms also have more expertise, with all different levels of associates and management to tackle your accounting. They also tend to cost more overall.
Tax Return Services
When you think of a CPA, there is no doubt that your annual tax return comes to mind. If you hold a significant amount of wealth or many assets, the idea of filing taxes can be downright daunting.
A CPA can work with you throughout the entire tax filing process, from preparing the tax return to submitting the tax filing forms.
Although the price breakdown of CPA firms can vary widely, you should expect to pay an average of around $200 per hour for professional tax return preparation.
However, the extra cost may save you money in the long run. Some of the top tax planning strategies involve write-offs and other advantages that you will not know about by doing your tax return yourself.
A CPA can also assist you throughout the year with general accounting and bookkeeping. This service tends to cost less than tax return preparation and other services. It can also be done by a regular accountant who is not a CPA.
Monthly bookkeeping involves tracking your expenses with software such as QuickBooks, saving invoices and receipts, and reconciling bank accounts.
If you also hire a CPA to prepare your tax returns, you may save money on the return if they already have all of your financial information in-house from the bookkeeping throughout the year.
Do you constantly have questions about your finances or where you want to go with your investments? Certified public accountants can also take a look at your financial situation and give you advice for building future wealth.
As part of your consulting services, a CPA may also prepare financial statements, which present a streamlined view of your financial position in all parts of your portfolio.
Should You Hire a CPA?
If you need help with your finances, then it may be worth it to hire a CPA. With this guide, you can estimate how much it will cost you and work the CPA services into your budget.
Would you like to learn more about how you can manage your money efficiently? Check out our site for more tips and tricks that will bring your wealth to the next level.