How Much Does a CPA Cost for a Small Business?

Small business owners must do more than simply abide by the law when it comes to money and taxes. It's also about feeling safe, monitoring your numbers, and continuing to grow your business. For this reason, many business owners employ Certified Public Accountants (CPAs).

But a lot of people are curious about how much a CPA actually costs. In 2025, most small businesses will pay between $200 and $400 an hour for basic tasks like keeping books and filing taxes. Some people might pay a set fee of $500 to $2000, depending on the job.

This blog will tell you what to expect to pay, how different pricing models work, and how to get the most for your money when you hire a CPA for your business.

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How Much Does a CPA Cost?

The cost of hiring a CPA can vary a lot based on where you live, how experienced the CPA is, and what services you need. The average hourly rate for small businesses to do basic accounting tasks like making financial statements, keeping books, or filing taxes is between $150 and $450. More complicated services, like audits or business consulting, can cost $1,000 or more an hour. Some CPAs charge a flat fee for certain services, which can help you plan your budget. If you need help on a regular basis, some people will charge you a monthly retainer fee. The total cost will also depend on how hard it is for your business to get money.

How Much Does a CPA Cost for a Small Business?

It costs small businesses between $200 and $400 an hour to hire a CPA to do things like keep track of their books, file their taxes, and make financial statements. More advanced services, like audits, business consulting, and representing clients before the IRS, can cost $1,000 or more per hour.

Breakdown of typical CPA pricing for small businesses:

Nationwide, the Bureau of Labor Statistics estimates the average CPA hourly rate is $192, though in metro areas like New York or San Francisco it often exceeds $400.

CPA Costs by State

The price of CPA services varies based on where your business is and what services you need. CPAs tend to charge more per hour and for services in states where living costs are higher.

Why Do You Need a CPA for Your Small Business?

A CPA can do more for your business than just file your taxes. Their advice can have a direct effect on how well your business handles money, stays compliant, and grows over time. Let's break it down into real-world value.

Tax Expertise That Saves You Money

A CPA can help a small business earning $150,000 a year save $5,000–$12,000 just by applying the right deductions like home office use, Section 179 depreciation, or the QBI deduction. They also guide you on whether switching to an S Corp could cut your self-employment taxes.

Strategic Financial Guidance

CPAs help with more than just taxes; they also help with planning, budgeting, and making smart decisions. If you want to grow your team, A CPA can help you figure out how much it will cost to hire someone, including payroll taxes, insurance, and possible tax credits like the Work Opportunity Tax Credit, which can be worth up to $9,600 per employee. Their advice can help you avoid spending too much money or making bad financial decisions.

Compliance and Peace of Mind

About 17% of small businesses in the U.S. have problems with the IRS because they file their taxes wrong or pay them late. A CPA makes sure that your records are correct and that your tax returns meet the requirements of both the state and the federal government. If you ever get audited, they can speak with the IRS on your behalf. A lot of people are willing to pay for that peace of mind.

What Determines a CPA’s Pricing? 

To determine the cost of hiring a CPA, you must examine the various factors that influence their fees. Their ability to save your money is just as important as the services they provide. Let's take a closer look at these factors, concentrating on the cost of hiring a certified public accountant in the United States.

1. What's the Norm?

Billing practices for CPAs are different in the US and around the world. Some people like to pay by the hour, while others like to pay a set amount for certain services. Hourly rates for CPAs can range from $150 to $450, depending on how much experience they have and what the job is. On the other hand, fixed fees are often used for services that have a set amount of work to do, like doing taxes. These costs can be anywhere from $200 to more than $2,000.

2. Retainer Fees

Some small business owners like to pay their CPA a set amount each month to keep getting help. This is the best way to go if you need regular help, advice, or financial reviews. Depending on how much time and service they include, retainers can cost between $500 and $2,000 a month.

3. Specialized Services

But IRS audit representation, business valuations, and international tax advice usually cost more. You need more skills for these jobs, and they can pay you more than $500 an hour.

How Can I Lower the Cost of a CPA?

It may seem like hiring a CPA is expensive, but there are smart ways to get expert help without spending a lot of money. In the end, it's all about being ready and knowing what you really need.

First, try to keep your money records in order. Your CPA will spend less time going through your paperwork if it is clear and ready to go. That means everyone will have less stress and fewer hours to bill.

Using bookkeeping software to keep track of things every day can also help you save money. Your CPA won't have to spend time logging receipts this way. Instead, they can focus on the big things, like planning your taxes and making a financial plan.

Another good piece of advice is to ask about service packages. A lot of companies have monthly or yearly plans that combine services for a lower price. We at SK Financial have helped thousands of small business owners choose the right package without any hidden fees.

Let us help you figure out what level of service is best for your business if you're not sure. Schedule a free consultation with us, and we'll help you find the best solution that doesn't cut corners.

Conclusion

It may seem like a lot of money to hire a CPA, but for most small businesses, it's worth it for the peace of mind, better financial planning, and growth over time. It's worth the money to hire a good CPA because they can help you pay less in taxes and make better choices with your money. A good CPA can help your business grow, but be sure to look at prices, services, and value.

FAQs

How much does a CPA cost for a small business in 2025?

The average pay for a CPA is between $150 and $450 an hour. Flat fees can be anywhere from $200 to more than $2,000, depending on how hard it is.

Should you pay a CPA by the hour or a flat fee?

It depends. Flat fees are best for services that are easy to plan for, like doing your taxes. Hourly is better for needs that are complicated and changeable.

Can I get a monthly plan with a CPA?

Yes. Many CPAs offer retainer packages that cost between $500 and $2,000 a month.

How do I find a trustworthy CPA for my small business?

Get recommendations, check credentials, read reviews, and talk to a few people to compare prices and services.

Do I need a CPA if I use QuickBooks?

You can keep track of things with QuickBooks, but a CPA makes sure you're following the rules, saving money on taxes, and planning for the future.

Are CPA Costs Tax Deductible?

In many cases, CPA fees, especially those related to tax preparation or business accounting, financial health and compliance. Let's delve deeper into these aspects to provide a more comprehensive view.

Can I Negotiate CPA Fees?

Yes, fees can sometimes be negotiable, especially if you're clear about the services you need and can offer a straightforward task for the CPA.

How much does hiring a CPA for tax services typically cost?

The cost can vary widely depending on the complexity of your tax situation, the services you need, your geographical location, and the CPA's experience. Rates can range from $150 to $450 per hour, or a fixed fee might be set for specific services like tax preparation, ranging from $200 to over $2,000.

Is hiring a CPA worth the cost?

For many individuals and businesses, yes. A CPA can offer expert advice, ensure compliance, minimize tax liabilities through strategic planning, and save significant time and effort. The potential for reducing errors and identifying savings often outweighs the cost.

What's the difference between a CPA and a tax preparer?

A CPA is a certified public accountant who has passed the CPA exam and met licensing requirements. They can offer a wide range of accounting and financial services. A tax preparer may not have the same level of certification and typically specializes in preparing tax returns.

How often should I meet with my CPA?

This depends on your financial situation and needs. Some businesses and individuals might require monthly consultations, while others only need annual tax preparation services.

What should I bring to my first meeting with a CPA?

Be prepared with financial documents such as previous tax returns, income statements, expense receipts, investment records, and any questions or concerns you have about your financial situation.

How do I find a reputable CPA?

Look for referrals from friends or business associates, check online reviews, and consider the CPA's credentials, experience, and areas of expertise. It's also wise to interview potential CPAs to ensure they fit your needs well.

What if I can't afford a CPA?

Consider options like smaller accounting firms, tax preparation services, or even free resources and assistance for those who qualify, such as the IRS's Volunteer Income Tax Assistance (VITA) program.

Can a CPA help with IRS audits?

Yes, one of the critical benefits of hiring a CPA is their ability to represent you and handle communications with the IRS in the event of an audit. Their expertise can be invaluable in navigating the audit process.

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