How Much Does a CPA Cost for a Small Business?
Most small business owners reach a point where they ask themselves the same question: “Do I actually need a CPA, and how much does a CPA cost for a small business?” The honest answer is that CPA pricing is not one-size-fits-all. Some small businesses only need help during tax season, while others want monthly support, payroll, bookkeeping or strategic tax planning.
In this blog, I will break down the real numbers, explain what you’re paying for, and help you decide what makes sense for your business.
Why Do Small Businesses Hire CPAs?
A CPA is more than a tax preparer. Most owners bring in a CPA because they’re tired of:
- Not knowing where their money is going
- Getting surprise tax bills
- Trying to fix bookkeeping mistakes
- Spending hours doing work they hate
- Worrying every time something comes from the IRS
A good CPA becomes your financial partner, giving clarity, saving taxes and helping you avoid costly errors.
How Much Does a CPA Cost for a Small Business?
Annual Tax Return Pricing
Most small businesses pay between $300 and $1,600 for their annual tax filing, depending on business structure and complexity.
| Business Type | Typical CPA Fee |
| Sole Proprietor (Schedule C) | $300 – $600 |
| Partnership (Form 1065) | $700 – $1,200 |
| S-Corporation (Form 1120-S) | $800 – $1,400 |
| C-Corporation (Form 1120) | $900 – $1,600 |
Monthly Accounting & Bookkeeping Costs
If you need ongoing support instead of once-a-year help, CPAs usually offer monthly packages.
| Service Level | What’s Included | Typical Cost |
| Basic | Light bookkeeping, reconciliations | $250 – $600/month |
| Standard | Bookkeeping, payroll, tax guidance | $600 – $1,000/month |
| Full Service | Complete accounting, reporting and tax planning | $1,000 – $1,500+/month |
Please remember that prices grow with transaction volume, number of accounts and complexity of operations.
Hourly CPA Rates
Many small business owners choose hourly support when they only need help occasionally, such as reviewing books, answering tax questions or handling IRS notices. Most CPAs charge between $150 and $300 per hour, while highly specialized tax strategists or consultants may charge $250 to $500 per hour, depending on experience and complexity. This option is ideal if you don’t need monthly services but want expert guidance when specific issues come up.
Remember, these are only average costs; actual CPA fees can vary based on your business needs, complexity and the level of expertise you require.
Factors Affecting CPA Costs
1. Business Complexity
The structure and nature of your business play a major role in determining CPA fees. A simple service-based business with predictable expenses is easier and quicker to manage than a retail store, restaurant, construction company or e-commerce operation with inventory, payroll and multi-state reporting. The more moving parts your business has, the higher the cost.
2. Number of Transactions
CPAs often price their services based on how much work is required each month. A business with a few dozen transactions is far easier to reconcile than one with hundreds or thousands of sales, expenses, transfers or merchant deposits. More transactions mean more time and naturally, a higher fee.
3. Condition of Your Books
Clean, organized and up-to-date books help keep your CPA costs low. If your accounts haven’t been reconciled, documents are missing or your bookkeeping has not been maintained consistently, the CPA will need to perform cleanup work before they can proceed. Cleanup can add significantly to the overall cost.
4. Geographic Location
CPA pricing can vary by region. Firms in major cities like New York, Los Angeles or Miami often charge more due to higher operating costs. Remote-friendly firms or CPAs in smaller markets sometimes offer more competitive pricing while still providing quality service.
5. Frequency of Services
Your needs throughout the year also affect your total cost. Businesses that only require an annual tax return will pay much less than those looking for ongoing monthly support, payroll management, quarterly filings or routine advisory services. Year-round service naturally comes with higher but more predictable fees.
Is a CPA Worth It for a Small Business?
Yes, most small businesses find that hiring a CPA is absolutely worth the investment. A CPA doesn’t just prepare taxes; they help you avoid costly mistakes, stay compliant with the IRS and uncover legal tax savings you might miss on your own. They also provide accurate financial reporting, strategic advice and peace of mind, allowing you to focus on running and growing your business. In many cases, the money a CPA saves you far outweighs the fees you pay.
How to Reduce Your CPA Costs?
- Keep your books organized year-round to avoid costly cleanup work.
- Use accounting software like QuickBooks or Xero to streamline your financial records.
- Provide documents on time, so your CPA doesn’t spend extra hours tracking missing information.
- Separate business and personal expenses to prevent confusion and additional review time.
- Reconcile your accounts regularly to keep financial data accurate and up to date.
- Choose a fixed monthly package if you need ongoing support, as it’s often cheaper than hourly billing.
- Schedule tax planning before year-end to avoid last-minute corrections and unexpected tax bills.
Conclusion
Hiring a CPA is an investment that can save your small business time, money and stress. While costs vary based on your needs and complexity, the right CPA provides clarity, accuracy and strategic guidance that far outweighs the fees. With organized books and smart planning, you can keep costs manageable while gaining the financial expertise your business needs to grow.
