How Much Does an Accountant Cost in 2026? (Small Business Guide)

Accountant costs range from $200-$2,500 monthly for outsourced bookkeeping to $100,000+ annually for full-time in-house staff including benefits, recruiting, and overhead. Hourly rates run $150-$400 for CPAs, annual tax preparation costs $733-$923, and fractional CFO services cost $4,000-$8,000 monthly.

This guide covers actual costs for different accounting services, the hidden expenses beyond salary, and the decision frameworks your company should use to choose between staffing models.

How much does an accountant cost?

Pricing varies dramatically based on whether you're hiring in-house or outsourcing services. Outsourced firms typically charge $500-$12,000 monthly on fixed retainers, while in-house hires include base salary plus the 42% benefits multiplier from BLS data, recruiting costs, and management overhead that most operators forget to budget for.

We've seen costs break down into hourly rates for project work and fixed monthly retainers for ongoing services, with most firms shifting toward predictable monthly agreements that eliminate billing surprises.

Average accountant hourly rates

According to Glassdoor salary data, staff accountants earn an average of $85,917 annually, or roughly $41 per hour, though most firms have moved away from hourly billing entirely. The AICPA CAS Benchmark Survey of over 1,100 accounting firms found that 84% now use fixed-price monthly agreements for predictable budgeting.

In practice, this means you'll know your monthly costs upfront rather than getting surprise hourly charges. The catch, though, is that 57% of these firms still charge "change orders" for work outside the original scope, which means unexpected projects like M&A due diligence or switching accounting software can add significant costs mid-year.

In-house bookkeeper costs

According to the Bureau of Labor Statistics, the median annual wage for bookkeeping, accounting, and auditing clerks was $49,210 in May 2024. When you add benefits, which typically run 42% of wages based on BLS employer cost data from June 2025, the total annual cost for an in-house bookkeeper reaches approximately $70,000.

Outsourcing bookkeeping work typically costs less than hiring full-time, but specific pricing varies widely based on transaction volume, complexity, and the services included. Most outsourced arrangements use fixed monthly fees rather than hourly billing, with costs scaling based on your company's needs. These bookkeeping mistakes compound quickly as you add employees, payment methods, and revenue streams.

Why true accounting costs matter

Knowing the real numbers behind accounting services helps you make better financial decisions and avoid common mistakes that drain cash without delivering value. Most operators budget for salary alone and wonder why their finance costs run higher than expected.

The hidden costs stack up quickly:

• Accurate budgeting: When you budget for a bookkeeper, the true cost includes the 42% benefits multiplier from BLS data, recruiting expenses, and management overhead. This surprise throws off cash flow projections if you haven't accounted for it upfront.
• Better hiring decisions: Understanding total employment costs compared to outsourced options helps you make informed choices about which model makes sense for your current stage and growth trajectory.
• Strategic planning: Knowing the cost drivers (transaction volume, complexity factors, industry specialization) helps you structure your finance function to scale efficiently rather than overpaying for capabilities you don't need yet or underinvesting when complexity demands more sophisticated support.

These cost realities shape when you make major decisions about staffing models, which tools to invest in, and how to structure your finance function as you grow.

What factors affect accountant costs?

Several variables drive significant cost differences beyond simple hourly rates or fixed fees. Many operators often underestimate how these factors compound. A CPA with construction industry expertise working in Manhattan costs significantly more than a general accountant in a smaller market, and the differential isn't just additive.

We've found the most impactful factors include location, transaction volume, professional credentials, industry specialization, business scale, and operational complexity. Each creates compounding effects that can double or triple your costs if you're not accounting for them properly.

How location drives accountant salaries

According to the Bureau of Labor Statistics' May 2024 data, accountants and auditors earn a median annual wage of $81,680 nationally. The highest-paying states for accountants are California, New York, Texas, Florida, and Pennsylvania — all highly populated states where cost of living drives compensation higher.

The CPA premium: What credentials add to costs

A CPA is a Certified Public Accountant who can represent clients before the IRS, sign audited financial statements, and carry professional liability insurance, while unlicensed bookkeepers can't provide these services. According to PayScale data from January 2025, CPAs earn an average of $79,944 annually compared to $58,546 for non-certified accountants. We've found the experience premium pays for itself through faster task completion and fewer expensive errors down the road.

Industry specialization and pricing

Specialized industry knowledge typically adds premium costs to base accounting rates, but the expertise prevents costly compliance mistakes and improves financial accuracy in ways that generic accounting can't match. A restaurant managing daily cash reconciliation and tip reporting needs different expertise than a SaaS company handling deferred revenue recognition and subscription metrics.

How company size scales accounting fees

Growing companies with $1M-$10M in revenue typically need mid-tier accounting services including accounts payable and receivable management plus quarterly financial reviews, while companies in the $10-30M revenue range benefit from full-service accounting with controller-level oversight.

Complexity factors that multiply base costs

Beyond revenue, complexity factors significantly increase costs in ways that catch operators off guard:

• Multiple legal entities: Can multiply base fees because each entity requires separate books, tax filings, and reconciliation.
• Multi-state operations: Require state-specific compliance expertise that commands premium rates.
• International transactions: Demand foreign currency accounting and transfer pricing knowledge that few accountants possess.
• Rapid growth: Above 20% annually requires more frequent financial planning cycles and tighter controls, which means more accountant time reviewing unusual transactions.

These complexity multipliers stack with the base costs we've already covered.

How accountants structure their fees

Modern accounting services have largely standardized on value-based and fixed-fee pricing structures, moving away from the hourly billing that created surprise invoices and misaligned incentives. According to AICPA survey data, 84% of firms now use fixed-price monthly agreements rather than hourly billing, which provides budget predictability for planning. That said, understanding all the fee structures helps you evaluate proposals and identify which model makes sense for your specific needs.

Hourly rate pricing

PayScale data shows CPAs charge an average of $35.69 hourly, though rates vary based on experience and specialization. Tax preparation, financial statement audits, and system implementation projects often use hourly rates because every client's situation differs. The downside: you won't know your total cost until the work finishes.

Per-project or flat fees

Annual business tax preparation costs $733 for partnerships and LLCs, $913 for S-Corporations, and $923 for C-Corporations according to the 2025 NATP Fee Study. Financial statement audits run $5,000-$25,000 depending on company size. Get written scope documentation specifying exactly what deliverables you'll receive and what triggers additional charges.

Fixed monthly retainers

Monthly retainers provide budget predictability and align incentives properly. Your accountant focuses on closing books accurately rather than stretching tasks to bill more hours. Retainers typically cover a defined transaction volume, specific deliverables, and set response times. When transaction volume increases significantly or out-of-scope projects arise, expect additional fees. We recommend budgeting a 10-20% contingency for scope expansion.

Accounting costs by service type

Different accounting services carry distinct pricing models based on complexity and time requirements. Understanding these variations helps with accurate budgeting for specific needs you'll encounter as your business grows.

Tax preparation and filing

Annual business tax preparation costs $733 for partnerships and LLCs filing Form 1065, $913 for S-Corporations filing Form 1120-S, and $923 for C-Corporations filing Form 1120 according to NATP data. Quarterly tax planning sessions help you avoid surprises by projecting estimated payments and identifying deduction opportunities before year-end. Multi-state operations add complexity because each state has different rules, forms, and filing requirements that take additional time to navigate.

Financial statement preparation

Basic monthly financial statements (profit and loss, balance sheet, and cash flow statement) cover standard reporting but don't include the management analysis or strategic insights you'd get from higher-tier services. If you're not sure what to look for in these reports, start with understanding how to read a P&L.

Controller-level financial statement services add management analysis, variance explanations, and polished reporting suitable for board presentations. Audited financial statements required for bank lending, investor due diligence, or regulatory compliance cost $5,000-$25,000 annually depending on company size and audit scope.

Payroll processing

Payroll services typically cost $5-15 per employee monthly depending on complexity like multi-state operations or complex benefit structures. A 100-employee company should budget $500-$1,500 monthly, or $6,000-$18,000 annually, for full-service payroll including tax filing, direct deposit, and compliance reporting. The math works out cheaper than hiring someone in-house to handle payroll manually, and you're outsourcing the compliance risk to specialists who stay current on changing regulations.

Advisory and consulting services

Fractional CFOs provide executive-level financial leadership on a part-time basis, typically working with several companies simultaneously. They typically bill either by the hour ($175-$450 per hour in most markets) or through monthly retainers. The monthly cost depends on how many hours you need: startups might require 10-20 hours monthly, while growth-stage companies often need 20-40 hours.

For comparison, a full-time CFO position commands a median salary of $161,700 according to the Bureau of Labor Statistics' May 2024 data for financial managers. With benefits added at 42%, the total annual cost for a full-time CFO reaches approximately $230,000 before considering potential equity compensation.

In-house vs. outsourced accounting

The comparison surprises most operators because it's not as straightforward as comparing salary to monthly fees.

An in-house bookkeeper doesn't cost just their salary. According to BLS data from June 2025, benefits add approximately 42% for private industry workers, recruiting costs average $5,000-$10,000, and management oversight consumes 10-15 hours monthly of executive time.

Outsourcing typically costs 40-60% less than hiring full-time when you account for the total loaded cost of employment: salary, benefits, payroll taxes, office space, equipment, and management time. The exact savings depend on your transaction volume and complexity. The benefits of virtual bookkeeping extend beyond just cost savings to include better scalability and access to specialized expertise.

Cost of hiring a full-time accountant

For in-house bookkeeper:

• Median salary: $49,210 (BLS May 2024)
• Benefits at 42%: $20,668
• Total annual cost: ~$70,000

For in-house controller:

• Median salary: $120,515 (Indeed Nov 2025)
• Benefits at 42%: $50,616
• Total annual cost: ~$171,000

These numbers explain why many companies in the $5-20M range opt for fractional or outsourced arrangements.

When the hybrid model makes sense

Some companies split the difference by hiring an in-house controller for oversight and strategic work while outsourcing transactional bookkeeping. Controllers earned a median base salary of $120,515 in the United States as of November 2025, according to Indeed salary data. Combined with outsourced bookkeeping services, this hybrid approach can provide both the strategic oversight of in-house leadership and the efficiency of specialized external support.

This model works particularly well for companies between 100 and 300 employees who need financial leadership but haven't yet reached the scale where a full finance team makes sense. Your controller focuses on analysis, forecasting, and strategic decision support while the outsourced team handles transaction processing and month-end close.

How to choose an accountant within your budget

Define your actual needs before requesting proposals, because the selection process becomes much clearer once you know what you're solving for. The process breaks down into three key steps that'll help you compare options fairly and avoid common pitfalls.

Count transaction volume first

Most accounting firms tier their pricing based on transaction counts, so knowing whether you're processing 50 or 500 transactions monthly determines which service tier makes sense. Pull three months of bank and credit card statements, count the line items, and average them. This gives you real data to share with potential providers rather than guessing.

Get multiple quotes and compare

Request detailed proposals from both outsourced providers and, when considering in-house, calculate true total cost including the 42% benefits multiplier, recruiting expenses, and management time. Account for setup fees that typically run $1,000-$5,000, technology implementation timelines, and required software subscriptions that aren't always included in quoted monthly rates. If you're overwhelmed by the options, an accounting software consultant can help you evaluate which tools and services make sense for your stage.

Negotiate fees and service packages

Fixed-price monthly agreements provide budget predictability, which is why 84% of accounting firms now structure their fees this way. However, 57% still charge "change orders" for work outside scope, so budget an additional 10-20% contingency. Ask which accounting software they integrate with, since better integration reduces manual work and can lower your costs over time. Tools that automate expense categorization and receipt matching (like Ramp for spend management) can significantly reduce your monthly bookkeeping fees by cutting the hours accountants spend on manual data entry and receipt chasing.

Questions to ask before hiring an accountant

Before you sign a contract, these questions help establish clear expectations and reveal how different providers actually operate day-to-day:

• What specific deliverables are included in the monthly fee? Get clear documentation of what reports you'll receive, when month-end close happens, and what support level to expect. The difference between "monthly financial statements" and "monthly financial statements with management analysis and variance explanations" can be thousands of dollars in value even if both sound similar.
• How many transactions does the fee cover, and what happens when volume exceeds that? Transaction volume drives pricing more than any other factor, so understand both the baseline threshold and what overage charges you'll hit. If you're growing 20% annually, you'll outgrow your transaction tier faster than you think.
• What's the typical response time for questions, and how is communication handled? Establish whether you'll have a dedicated contact person, whether responses come within hours or days, and what the preferred communication channels will be. Some firms operate on ticket systems that can take 48 hours for responses, which doesn't work when you need an answer before approving a large payment.
• What accounting software integration is required? Ensure compatibility with your existing systems and understand implementation timelines. Poor integration creates manual work that negates the value of professional support, and switching accounting software mid-year creates more problems than it solves. For growing companies, SaaS accounting software offers cloud-based accessibility that makes outsourced arrangements easier to manage.

These answers separate providers who truly understand your needs from those just trying to close a deal. The best accounting relationships start with honest conversations about expectations, scope, and how you'll work together day-to-day.

Frequently asked questions

What's the difference between an accountant and a bookkeeper?

Bookkeepers handle daily transaction processing and bank reconciliations. Accountants interpret financial data, prepare tax filings, and provide strategic guidance. CPAs can sign audited financial statements and represent you before the IRS, while bookkeepers can't.

How much does it cost to hire a CPA?

Annual tax preparation costs $733-$923 depending on business structure according to the 2025 NATP Fee Study. The total cost for ongoing CPA services varies widely based on transaction volume and complexity.

Is it cheaper to outsource accounting or hire in-house?

Outsourcing typically costs 40-60% less than hiring full-time when you account for the total loaded cost of employment. A bookkeeper costs approximately $70,000 annually including benefits, while a controller runs about $171,000 annually. Outsourcing becomes cost-effective when you don't need full-time capacity or want to avoid the overhead of managing finance staff.

When should I hire a controller instead of a bookkeeper?

Once your company reaches $1M in revenue, you typically need controller-level support for financial analysis and management reporting. Clear signals include answering board questions with data you're only 70% confident about or month-end close taking more than a week.