How Much Does a CPA Cost: A Guide for Small Businesses

Running a small business means juggling a lot, sales, employees, taxes, and more. One area where many business owners get stuck is accounting. And that's where a CPA can help. But let’s be honest: the first thing you want to know is how much does a CPA cost?

Let’s break it down.

What Is a CPA?

CPA stands for Certified Public Accountant. Unlike a regular bookkeeper or accountant, a CPA has passed a special exam and holds a license to offer professional accounting services. They’re trained to do much more than just prepare taxes. A CPA for small business can help with budgeting, audits, financial planning, and even business advice.

Many people ask, what is a CPA exactly? Think of them as highly trained financial experts who can help your business stay on track and stay out of trouble with the IRS.

CPAs are held to a strict code of ethics and continuing education. This means they stay up-to-date on the latest tax laws and financial regulations. That’s important if you want to make sure your business isn’t missing key deductions or running into trouble down the road.

Why Hire a CPA for Your Small Business?

Not every business needs a full-time accountant. But if you’re:

• Filing taxes for an LLC, S-Corp, or partnership
• Dealing with payroll
• Applying for loans or grants
• Trying to manage cash flow better
• Growing quickly and need help scaling

...then a small business CPA is worth the cost.

They don’t just plug numbers into software. They help you understand the story behind those numbers. They can guide your business through big decisions, spot red flags early, and even help you plan for the future.

Hiring a small business accountant also gives you peace of mind. When tax season rolls around, you're not scrambling. You're prepared. That’s worth a lot.

How Much Do CPAs Charge?

Now to the big question: how much do CPAs charge? The answer depends on a few things:

• What services you need
• Where your business is located
• How complex your finances are
• Whether you need ongoing help or just once a year

Hourly Rates

Most CPAs charge by the hour. On average, you’ll pay between $150 to $400 per hour. For basic services, like tax prep for a single-owner business, it could be on the lower end. For more complicated needs—think payroll, audits, or multi-state filings—the rate goes up.

Solo CPAs or those in smaller towns may charge closer to $100 per hour, while big-city firms or highly experienced CPAs could charge over $400 per hour.

It’s important to clarify upfront if your CPA bills hourly and what counts toward the clock. Even emails and phone calls can be billable.

Flat Fees

Some CPAs offer flat fees for specific jobs. For example:

• Filing a business tax return: $500–$1,500
• Preparing financial statements: $300–$1,000
• Full-year accounting package: $2,000–$5,000
• Business and personal tax combo: $1,200–$3,000

Flat rates can be helpful if you want to budget ahead. Some CPAs bundle services to offer better value, especially if you sign up for ongoing support.

How Much Does a CPA Cost for Small Business Monthly?

Many small businesses hire a CPA on a monthly basis. These packages usually include:

• Monthly bookkeeping
• Quarterly tax estimates
• Payroll support
• Business advice
• Monthly financial reports
• Tax planning sessions

So, how much does a CPA cost for small business monthly? Here’s a rough guide:

Business Type	Monthly CPA Fees
Solo Freelancer	$300–$600
Small E-commerce Store	$400–$800
Brick-and-Mortar Retail	$500–$1,000
Service-Based Firm	$500–$1,200
Growing Business ($1M+)	$1,000–$2,500
Tech Startups w/VC	$2,000–$4,000+

If your CPA includes financial strategy, CFO-level support, or audit prep, expect to pay more. Some small businesses pay $3,000 to $5,000/month for full financial support.

What Services Affect CPA Fees?

Let’s look at what drives CPA fees up or down:

• Clean vs. messy books – If your records are a mess, it’ll take more time and cost more.
• Type of tax return – A simple Schedule C is cheaper than a full S-Corp return.
• Number of employees – More payroll = more work.
• Location – Big city CPAs usually cost more.
• Technology – If you already use QuickBooks or Xero, your CPA can do less manual work.
• Specialized industries – If your business operates in a heavily regulated space (like healthcare or nonprofits), rates may be higher.

What If I Only Need Help During Tax Season?

That’s fine too. Many small businesses only call a CPA once a year. If all you need is tax filing, expect to pay:

• $500–$1,200 for a basic return
• $1,200–$2,500+ for multi-owner or multi-state returns

Some CPAs also offer tax filing packages that include year-end bookkeeping adjustments, 1099 filings, and consultations.

If you’re filing both business and personal returns, bundling them together can save you money.

How to Get a CPA

Now that you know how much does a CPA cost, let’s talk about how to get a CPA that fits your needs.

Here are some steps:

1. Ask for referrals – Other small business owners can be your best resource.
2. Use professional directories – Look up your state’s CPA society.
3. Interview multiple CPAs – Ask about their experience with small businesses.
4. Look for industry experience – A CPA who works mostly with restaurants may not be the best fit for your tech startup.
5. Check their pricing model – Hourly, flat fee, or monthly package?
6. Ask for references – Don’t be afraid to talk to other clients.

A CPA isn’t just someone who files your taxes. They’re someone who can help you grow your business smartly.

Is It Worth Paying for a CPA?

In most cases, yes. A good CPA can help you:

• Avoid tax mistakes
• Catch expensive errors
• Save money with smart deductions
• Plan better for growth
• Improve cash flow
• Get investor-ready

The right small business accountant doesn’t cost you money—they save you money in the long run. They also save you time, which means more hours focused on building your business.

Can I Just Use Software Instead?

QuickBooks, Xero, and other tools are great for managing your books. But they can’t offer tax advice or strategic planning. If your needs are very basic, you might be okay on your own. But if your business is growing, investing in a CPA for small business makes a lot of sense.

Software can help you stay organized, but it doesn’t replace expert guidance. In fact, most CPAs prefer when clients already use accounting software because it streamlines their work.

Tips to Save on CPA Costs

Even if you’re on a tight budget, you can manage your CPA fees smartly:

• Keep your records clean and organized
• Learn some basic bookkeeping yourself
• Use accounting software
• Ask about flat-rate services
• Don’t wait until the last minute to hire one
• Combine personal and business returns with the same CPA
• Meet regularly to avoid surprises
• Ask about off-season discounts

The more prepared you are, the less time your CPA will spend—and the less you’ll be charged.

CPA vs. Bookkeeper: What’s the Difference?

If you’re wondering about the difference between a CPA and a bookkeeper, here’s the short version:

• Bookkeepers track your day-to-day transactions
• CPAs analyze, interpret, and give strategic advice

Some small businesses start with just a bookkeeper. But as you grow, having a CPA review your financials can prevent big mistakes and missed opportunities.

What to Look for in a Small Business CPA

When hiring a CPA, look for:

• Experience with small businesses
• Familiarity with your industry
• Strong communication skills
• Availability during tax season
• Transparency in billing

Your CPA should feel like a partner, not just a once-a-year tax person.

Is a CPA Worth It for Your Small Business?

Here’s the bottom line—how much a CPA costs should never be looked at in isolation. What you’re really paying for is confidence in your numbers, clarity during tax season, and compliance that saves you from future penalties. If you’re a solo freelancer with simple books, maybe you can get by with accounting software. But once you’re running payroll, juggling invoices, managing inventory, or planning to grow, a CPA for small business isn’t just a smart choice, it’s a necessary one.

Sure, CPA fees may look steep compared to doing it all yourself. But think about what a CPA helps you avoid: late filings, overpaid taxes, missed deductions, poor cash flow, and even IRS audits. So when you're asking, “How much does a CPA charge?”, remember—you're not just paying for hours. You're investing in expertise.

FAQs

1. How much does a CPA cost per hour for a small business?

Most CPAs charge anywhere from $150 to $400 per hour, depending on your location and the complexity of the work. You might pay less for routine bookkeeping and more for tax strategy or audit support.

2. Is it cheaper to hire a CPA or use accounting software?
Software like QuickBooks or Xero is more affordable upfront. But a small business CPA can save you money long term by reducing tax liabilities, spotting errors, and offering personalized advice that software can’t.

3. What is a CPA and how is it different from a regular accountant?
A CPA (Certified Public Accountant) is a licensed financial professional who’s passed a state exam and met education and experience requirements. Not all accountants are CPAs. CPAs can legally represent you before the IRS and are often better equipped for tax planning and compliance. 

4. Can a CPA help with more than just taxes?
Yes. CPAs for small business often help with budgeting, forecasting, business formation, payroll, audits, and even securing funding. They're long-term financial partners, not just tax-season help.

5. How do I find a good CPA for my business?
Ask other business owners, check online reviews, or look through your state’s CPA society. Make sure you ask about how much the CPA charges, their experience with businesses like yours, and how they communicate.