How Much Does an Accountant Cost for a Small Business Per Month

Cost of an accountant for a small business

As a small business owner, keeping track of your finances and fiscal performance is crucial to your success. That’s where accountants come in to help you analyze and organize finances, generate fiscal reports when needed, and stay compliant with ever-changing tax regulations. In this article, we’ll discuss the importance of accountants for small businesses and explore the per month cost of an accountant for a small business. 

What Can a Seasoned Accountant Help You Achieve? 

A seasoned accountant can play a vital role in the success of your business and its fiscal performance. They possess the expertise and knowledge to provide valuable financial insights and guidance. From managing cash flow to preparing accurate financial statements and tax returns, an accountant ensures that your financial records are up to date and compliant with relevant regulations. Leveraging their expertise enables you to make informed decisions and maintain a strong financial position.  

Additionally, by studying financial trends, an expert accountant can help you leverage industry best practices to stay afloat with timely insights about your business even in the most unpredictable market conditions.  

What Are the Types of Accounting Services for Small Businesses? 

Small businesses have various options when it comes to accounting services. Let’s look at three common choices: 

  1. Full-Service Accountants: These professionals handle all aspects of your accounting needs. From bookkeeping and payroll processing to tax planning and financial analysis, they provide comprehensive support tailored to your business requirements. 
  1. Virtual Accountants: Virtual accountants offer remote accounting services, providing flexibility and cost savings for small businesses. Through cloud-based software and secure communication channels, virtual accountants efficiently manage your financial tasks while minimizing overhead costs. The cost of an accountant for a small business is significantly reduced by a virtual operating model. 
  1. DIY Accounting: Some small business owners prefer to handle their own accounting tasks. While this may save money initially, it can lead to errors and inefficiencies if not managed properly. DIY accounting is suitable for businesses with simple financial structures and owners with strong accounting knowledge. However, performing complex accounting tasks can lead to an increased business accounting cost when you plan to expand your business in the future. 

By evaluating the complexity of your finances and the level of support you require, you can determine which type of accounting service is the best fit for your small business. As a businessman, you may not always know emerging trends in accounting practice and that’s why we’re here to help you make a more informed decision. 

How Much Does an Accountant Cost for Small Businesses Per Month? 

If you are a business owner struggling to manage your finances without much-needed assistance, it’s important to know the factors involved in running your business on a day-to-day basis. The cost of an accountant for a small business depends on several factors and you’ll always benefit from being prepared. These include the scope of accounting tasks they will perform and the complexity of your financial situation.  

Here’s a breakdown of the potential cost of an accountant for a small business: 

  • Salary: The average salary for a full-time accountant in the United States ranges from $50,000 to $75,000 per year, depending on experience and location. This translates to an average monthly cost of approximately $4,167 to $6,250. At the same time, if you outsourced accounting services to a service provider in India, you would be paying on average less than $4,266 yearly for the same role.
  • Benefits and Overhead: In addition to the base salary, small businesses must consider benefits and overhead costs associated with employing a full-time accountant. These may include health insurance, retirement plans, payroll taxes, and office space. On average, these expenses can amount to an additional 30% to 40% of the employee’s salary. 
  • Training and Professional Development: Accountants need to stay updated with industry trends and regulations. Small businesses should allocate funds for ongoing training and professional development opportunities, which can range from a few hundred to a few thousand dollars per year. 

Considering these costs, hiring a full-time accountant for a small business can become a significant financial commitment. That’s why you’ll be happy to know that many small businesses are turning to outsourced accounting services as a cost-effective solution. 

Are Outsourced Accounting Services More Cost Effective? 

Outsourced accounting services can offer small businesses substantial cost savings compared to hiring a full-time accountant. By partnering with a reputable outsourcing provider like GAC, you can access expert accountants at a fraction of the cost. GAC provides skilled accountants for as low as $8 per hour, significantly reducing monthly accounting fees for small businesses.  

Studies have shown that small business owners typically spend anywhere from 1 to 5 hours per week on accounting tasks. This includes tasks such as bookkeeping, invoicing, expense tracking, payroll, and financial reporting. We help busy businessmen save on the added acquisition cost of an accountant for a small business by offering a customized solution to streamline accounting tasks. 

Apart from the financial benefits, outsourced accounting services also bring other advantages: 

  • Expertise and Scalability: With outsourced accounting, you gain access to a team of experienced professionals who specialize in small business accounting and tax services. As your business grows, you can easily scale up or down without the hassle of hiring and training new employees. 
  • Technology and Innovation: Outsourcing firms utilize advanced accounting software and tools to streamline processes and improve efficiency. By leveraging their technological infrastructure, you benefit from automated workflows, real-time reporting, and enhanced data security. 
  • Focus on Core Business: Handing off your accounting tasks to experts allows you to focus on driving your business forward. You can redirect valuable time and resources towards strategic initiatives, customer satisfaction, and expansion opportunities. 

Hiring an accountant is essential for almost all businesses, but it doesn’t have to break the bank. Outsourced accounting services offer a cost-effective solution that provides expertise, scalability, and operational efficiency that boosts the overall fiscal performance of your business strategy.

Reduce Business Accounting Costs and Transform the Way You Work

GAC specializes in providing affordable and reliable accounting solutions, ensuring uninterrupted performance for small business owners and service providers. We help clients around the world reduce the monthly cost of an accountant for a small business significantly. Remember, investing in the right accounting support can make all the difference in the success of your brand.  

Contact GAC for a custom plan to handle all your small business accounting requirements with a cost-effective solution to ensure uninterrupted financial success.

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