- You may decide to hire an accountant to file tax returns or additional services.
- The cost of an accountant may depend on his hourly wages and the work he will need to complete.
- Choosing the right accountant may depend on the experience you prefer.
If you need an accountant Prepare your tax returns Or help in running a business, we’ve gathered information about the average costs of accounting services and tips on what to look for in an accountant.
Keep in mind that accounting fees may vary due to many factors, including what state you live in and the level of experience required to complicate your situation.
Average Accountant Costs
Anjali Gariwala, CFP® Professional at fit advisors And the former CPA, says the accounting fee will likely depend on the work that will need to be completed.
“For someone with super basic returns — so a W2 income, maybe just taking the standard deductions — these are probably in the $100 low range,” Jariwala says. “Once you start to complicate – if you have
Income, you own a house, you probably have some unique investments — that’s when the fees start going up, so it’s really different.”
The National Association of Accountants Conducting an annual survey asking members to provide information on average costs and fees for preparing taxes and additional accounting services.
Below you will find the average costs for different services aggregated with data from The latest NSA poll.
Average costs for tax return documents
Accounting firms typically charge an average fee of $69.75 for filing W-2 forms and $67.72 for filing 1099 forms.
You can also use this chart to get a rough estimate of average costs for additional federal tax return forms:
An accounting firm typically charges the following average fees for federal tax return schedules:
Average additional customer services costs
An accounting firm typically charges the following fees for accounting for customer services:
Hiring a chartered accountant in exchange for tax preparers
If you want to hire a professional to prepare your tax returns, Jariwala says it’s important to understand your priorities, so you can determine how much experience you’ll need for your situation.
Registered agents and CPAs must take an exam and meet certain designation requirements to receive their designations. Meanwhile, tax preparers may only work on preparing tax forms because they do not have the educational experience or credentials to provide additional accounting services.
“If you are a small business, you may be better suited to using someone as a CPA accountant because they will get that accounting experience, which is very useful in addition to tax experience,” says Jariwala.
Tips for choosing an accountant
Lisa Green Lewis, Accounting and Tax Expert at TurboTaxwarns that no accountant should be paid based on the result of his work.
“If someone tells you, ‘I’m going to take back a certain amount of taxes, so the fee would be that amount. “This is a red flag, and you should never pay based on it,” advises Green Lewis.
When choosing an accountant, Jariwala says it helps to understand how the accountant gets charged.
“Some charge a flat fee based on the type of payout. It’s a little easier to understand because you know what you’re going to pay. Others will charge fees and hours. Prices and hours depend on how much time different people spend on the team it takes,” explains Jariwala.
You may also want to consider whether you would prefer working with an individual or an accounting firm. Jariwala points out that a one-person shop may be ideal if your needs are clear because the same person will be able to fulfill your needs.
However, you might decide like, ‘I need someone who can pay my taxes, but I also need someone who can review my book and someone who can answer questions about planning.’ In this scenario, you might want to go with a business versus a one-person store only because A company should have multiple specialties within the same office that can really cater to all your needs,” adds Jariwala.