How Much Does an Accountant Cost for a Small Business? [+Tips to Save Money]

A few months ago, one of our bookkeeping team members spoke to a freelance graphic designer who decided to “just handle taxes herself” to save a few hundred dollars.

By April, she was hit with over $4,000 in penalties, simply because she hadn’t known about quarterly tax payments or how to track deductible expenses.

Then there’s the e-commerce founder our consultant met at a local meetup. He’d raised a $200K seed round, but never set up proper bookkeeping.

Three months later, he was down to $30K, and couldn’t explain to his investors where the money went. That shook their confidence in the business.

These aren’t exaggerated cautionary tales. These are real stories from real founders, just like you, who learned the hard way that “doing it yourself” can cost far more than you think.

If you’re wondering, “How much does an accountant cost for a small business?”, this guide gives you clear, grounded answers. And it shows you what it might cost not to hire one.

In the next few minutes, you’ll discover:

• Clear accounting cost estimates (hourly, monthly, and flat-fee models)

• What kind of accounting help you actually need at each business stage

• Smart ways to streamline bookkeeping without cutting corners

How Much Does an Accountant Cost for a Small Business? (And What Are You Actually Paying For?)

Let’s get a little more granular. We’ll walk you through the exact pricing of accountants.

Typical Accounting Costs for Small Businesses (USD)

Hourly pricing: Hourly rates are typically charged for one-off tasks that don’t require ongoing support. Think of it like calling a lawyer for a consultation , you’re paying for their expertise, not a recurring service. 

Common use cases:

• Deciding between an LLC vs. S-corp

• Reviewing your QuickBooks setup

• Cleaning up messy books from last year

• Planning for tax-saving strategies before year-end

• Preparing for a funding round or audit

Monthly Retainer: If your business has regular financial activity, customer payments, vendor payouts, inventory purchases,  you’ll want monthly bookkeeping. This is where a monthly retainer comes in. You pay a fixed fee and the accountant handles your books on a continuous basis. 

Quarterly Pricing: This refers to tasks that occur four times a year. Most commonly, this includes:

• Quarterly estimated tax filings (for freelancers, LLCs, and S-corps)

• Sales tax filings (if you sell physical products in the U.S.)

• Quarterly financial reviews or budgeting sessions

So, you can spend anywhere between $500 and $30,000 a year on accounting. It all depends on where you are in your business journey, and how much of the backend work you want off your plate.

Here’s how to think about it, stage by stage:

1. If You’re Just Starting Out (No Employees, Revenue < $50K)

You can keep things simple. Use software like Wave (free), doola Bookkeeping, and maybe hire a tax pro once a year.

• Annual tax filing: ~$300–$800

• Bookkeeping software: Free to $300/year

• Occasional hourly help: $150–$250/hour

You’ll likely spend under $1,000 a year. And honestly, that’s enough at this stage.

2. If You’re an LLC or S-Corp Making ~$100K–$300K

Now things get a little complicated here,  monthly revenue, real expenses, maybe a VA or agency, and deadlines you don’t want to miss at any cost. This is when you should stop DIY-ing in accounting in this phase.

Here’s the breakdown of your accounting expenses:

• Monthly bookkeeping: $300–$700/month

• Annual tax filing (entity + personal): $800–$1,500

• Payroll software (if needed): $50–$200/month

• Advice when you need it: $200–$300/hour

You’re looking at $5,000–$10,000/year, depending on how much you want to stay hands-on.

3. If You’re Scaling ($500K+ Revenue, Team, Inventory, Sales Tax)

At this stage, founders often express the need for a dedicated finance professional to take full ownership of the financial aspects of their business.

This typically arises when the business is actively selling across multiple channels, requiring meticulous tracking of COGS, managing complex state sales tax obligations, and engaging in fundraising activities or issuing equity.

Here’s how your accounting spend would look:

• Bookkeeping (multi-channel, inventory-aware): $1,000–$2,000/month

• Payroll + compliance: $300–$700/month

• Tax filing (multi-state, product biz): $1,500–$4,000/year

• CFO-style advisory: $250–$400/hour

You’ll spend around $15,000–$30,000/year, but you’ll sleep better knowing things are clean and compliant. 

🔖 Related Read: How to Set Up Smart, Scalable Finances from Day 1

Key Factors That Influence Accounting Costs

There are several key factors that influence the cost of accounting services for a small business:

1. Type of Services Needed

The most significant factor is the specific services you require.

Basic bookkeeping (recording transactions, reconciling accounts) will be less expensive than comprehensive services that include tax preparation, financial statement analysis, payroll management, and strategic financial planning.

The more complex and specialized the services, the higher the cost.

2. Volume and Complexity of Transactions

A business with a high volume of transactions, multiple income streams, various expense categories, and international dealings will naturally require more time and effort from an accountant than a business with fewer, simpler transactions.

Similarly, businesses with complex inventory management, multiple entities, or intricate financial structures will incur higher costs.

3. Business Industry

Some industries have more complex accounting requirements than others.

For example, businesses in highly regulated industries (like healthcare or finance) or those with unique revenue recognition challenges (like construction or software development) often require specialized knowledge and more detailed record-keeping, leading to higher accounting fees.

4. Business Structure

The legal structure of your business (sole proprietorship, partnership, S-Corp, C-Corp, LLC) impacts the complexity of tax preparation and compliance.

Corporations generally have more intricate tax filings and regulations, which can increase accounting costs compared to sole proprietorships.

5. Geographic Location

Accounting fees can vary significantly based on location. Accountants in major metropolitan areas with a higher cost of living typically charge more than those in smaller towns or rural areas.

6. Accountant’s Experience and Credentials

Highly experienced accountants, CPAs (Certified Public Accountants), or firms with specialized expertise often charge premium rates. 

Their expertise can save you money in the long run through tax optimization and sound financial advice, but their hourly or fixed fees will be higher than less experienced bookkeepers or general accountants.

7. Method of Billing

As mentioned earlier, accountants and CPAs typically charge in one of 3 ways:

📌 Hourly rate: You pay for the actual time spent on your accounting tasks. This can be unpredictable but might be cost-effective for businesses with fluctuating needs.

📌 Fixed fee/retainer: A pre-agreed-upon fee for a defined set of services over a specific period (e.g., monthly, quarterly). 

📌 Value-based pricing: The fee is based on the perceived value the accountant delivers to your business (e.g., tax savings, increased profitability), rather than just the time spent.

8. Software and Technology Used

While not directly an accounting cost, the accounting software your business uses can influence efficiency and, therefore, the time an accountant needs to spend.

If you use cloud-based, integrated software, it can reduce manual entry and streamline processes, potentially lowering overall accounting fees.

Some accountants may also include the cost of their preferred accounting software in their fees.

9. Your Level of Organization

Your accounting costs often depend on how clean your books are.

If your records are disorganized, incomplete, or full of missing transactions, your accountant will spend more hours fixing them, which directly increases their fees.

Using a systemized process and cloud-based bookkeeping tools can help reduce those costs significantly.

Need help getting your books in order? doola’s bookkeeping experts can help you clean up your finances and stay compliant, without the chaos.

10. Outsourced vs. In-House

Deciding whether to hire an in-house accountant or outsource to a firm will have different cost implications.

Outsourcing often provides flexibility and access to diverse expertise without the overhead of an employee’s salary, benefits, and office space.

What Do Accountants Actually Do for Small Businesses?

Accountants are not just regular number-crunchers, they are your growth enablers.

Here’s how their work translates into tangible business outcomes.

They Clean Up Your Books So You Know Exactly Where You Stand

Every Stripe payout, Shopify transaction, and ad spend becomes a tangled mess unless someone turns it into a clean story.

A good accountant tracks every dollar, tags it correctly, and shows you what’s actually happening, not just what’s coming in.

You’ll know which product drives the most margin, which expenses are bloating your budget, and where cash flow is thinning. 

doola’s bookkeeping team handles monthly categorization, reconciliations, and reports,  so you always have clear insights on your finances.

They File Your Taxes and Maximize Deductions

Smart accountants structure your tax filings to minimize what you owe, legally.

That means catching deductions you might miss like software spend, mileage, advertising, even startup costs.

They Keep You Compliant With Sales Tax (Even Across Multiple States)

Most online sellers don’t realize they owe sales tax in states they don’t live in.

Economic nexus laws changed everything.

If you cross a certain threshold in California or Florida, you need to register and file, or risk penalties and platform trouble.

A good accountant keeps tabs on all of it, automates the filings, and gives you peace of mind while you scale.

They Manage Payroll, So You Can Focus on Building a Team

Whether you have a full-time designer in Texas or a contractor in the Philippines, your accountant makes sure everyone’s paid right, and nothing comes back to bite you during tax season.

Misclassify someone, and you’re looking at IRS issues. 

They Step In When Something Goes Wrong

Even if everything’s running smoothly, things can go sideways.

You might get a letter from the IRS questioning a 1099. Stripe could flag your account. A state might ask for backdated sales tax returns. These moments feel urgent, and confusing.

That’s when your accountant becomes your first line of defense.

They interpret the notice, respond with the right documents, and speak the language of compliance so you don’t have to.

In-House vs. Outsourced Accountants: Pros, Cons & Cost

When it’s time to get professional financial support, founders often face two paths: hiring an in-house accountant or outsourcing. 

Here’s our take on both:

Cost-wise, in-house accounting is a fixed investment. You’re looking at $60K–$120K/year in salary, plus benefits, payroll taxes, maybe even office space if they’re local.

It makes sense once you’re handling complex operations every single day,  things like multi-state payroll, international inventory, investor reporting.

On the flip side, outsourced accounting works more like software. Pay only for what you need, when you need it.

That might be $200/month for basic bookkeeping, or up to $3K/month if you need full-service accounting across entities. But there’s no long-term overhead. No training. No hiring stress.

Expertise-wise, an in-house person will know your books intimately. That’s very IMPORTANT, but also limiting. They may not have dealt with VAT filings in the EU or Delaware franchise tax deadlines.

An outsourced team brings in specialists: tax pros, compliance folks, startup CPAs. 

In short, breadth > depth in the early stages.

So, When Do You Make the Switch?

If you’re crossing $1M in annual revenue, hiring full-time may start to make sense. Same if you’re operating across multiple countries or need real-time financial modeling.

Until then, outsourcing is often a smarter move.

And that’s where doola hits the sweet spot: You get dedicated experts who’ve done this across industries and borders,  without the full-time payroll drag.

🔖 Important Read: 9 Benefits of Hiring a CPA for Your Business

How Bookkeeping Costs Compare (and Why You Might Not Need a Full-Time Accountant)

Please keep in mind: Bookkeeping ≠ Accounting (And You Might Not Need Both)

Don’t confuse bookkeeping with accounting! In the beginning, you probably just need bookkeeping, which is tracking money in and out, matching it with your bank, and sorting your expenses. This costs less, around $200-$600 a month. 

Accounting is more complex, involving tax planning and financial forecasting, and costs more ($1,000-$3,000 a month). For most early businesses, clean books and a CPA for taxes are enough.

How to Save on Accounting Without Compromising Quality

If you’re trying to be smart with accounting spend, here’s what you should follow:

Stay Organized

Instead of having a pile of crumpled receipts, use an app like Expensify to snap photos of receipts as soon as you get them, and categorize them (e.g., “office supplies,” “travel”).

When your accountant looks at your books, everything is neatly organized, saving them hours of sorting and you money.

Use the Right Accounting Tools

Think of accounting software as a super-efficient assistant. It automates tedious tasks that used to take human accountants hours, like matching bank transactions to your expenses.

When these tools do the “grunt work,” your accountant can focus on the more valuable tasks, like analyzing your financial health and giving you strategic advice.

Example: If you use some avant garde accounting software like QuickBooks or doola, every time money goes in or out of your bank account, the software automatically tries to categorize it.

This means your accountant doesn’t have to manually enter every single transaction; they just review and confirm, making their job faster and cheaper for you.

Don’t Hire for What You Don’t Need

Not every business needs a highly specialized, expensive CPA (Certified Public Accountant) on retainer all year long.

CPAs are like highly skilled experts, and you need them for complex operations (like filing your annual taxes or dealing with an audit), but not for routine check-ups.

For daily financial record-keeping, a bookkeeper, who is typically less expensive, is perfectly capable.

Go Flat-fee When You Can

Paying an accountant by the hour can feel like watching a taxi meter run. To be honest, you never know exactly how much the final bill will be, which can be stressful and make budgeting difficult.

A flat-fee arrangement, on the other hand, is like having a fixed monthly subscription. You know exactly what you’ll pay each month, which helps you plan your finances without any surprises.

For example, instead of an accountant charging you $100 per hour for an unknown number of hours each month, a flat-fee arrangement might be $300 per month for all your bookkeeping and basic financial reporting needs.

This predictability allows you to budget effectively and removes the stress of unexpected bills.

Why It’s Worth Investing in Professional Accounting (Beyond the Usual Reasons)

We won’t take much of your time here. Just go through this table and see some of the powerful reasons why investing in professional accounting is definitely not optional in 2025.

And Here’s the Bigger Picture

Behind every smart financial decision is good data. Behind good data is good accounting.

That’s why thousands of founders choose doola, not just to file taxes, but to build a solid financial foundation that scales with their business.

From formation to bookkeeping to compliance, we help you move forward with clarity. Whether you’re launching your first product or preparing for your third funding round, clean books are a competitive advantage.

We help you build that edge, seamlessly. Sign up now!

Let doola Bookkeeping Handle It for You

We offer flat, transparent pricing, access to real bookkeeping experts, and a process built specifically for founders, creators, and global entrepreneurs.

Whether you’re based in Miami or Mumbai, running an LLC or an S-Corp, selling on Shopify or building SaaS,  we’ve got your back.

Join the 10,000+ global founders who trust doola to stay audit-ready, tax-prepped, and totally in control.

Sign up to talk to a bookkeeping expert now

FAQs

Is hiring an accountant worth it for a small business?

Yes, if you want to stay compliant, avoid costly mistakes, and make informed decisions. Even part-time or outsourced help can save you hours and thousands in penalties or missed deductions.

Can I do my own accounting as a solopreneur?

You can, especially in the early days, but it comes with risks. If your time is better spent on growth, it’s smarter to outsource basic bookkeeping and consult a pro for taxes.

What’s the difference between a bookkeeper and accountant?

A bookkeeper tracks daily transactions and keeps your records clean. An accountant interprets those records to offer insights, file taxes, and guide strategy.

How often should I talk to my accountant?

At minimum, quarterly, for tax prep, planning, and financial check-ins. If you’re growing fast or making big decisions, monthly check-ins are ideal.

How does doola compare with a traditional CPA firm?

doola gives you expert bookkeeping, tax, and compliance support,  without the high hourly rates or slow response times. Flat pricing. Global founder support. All online.