In 2015, the non-profit organization SCORE did a survey of how much small businesses usually spend on accounting. The survey showed that the majority of small business owners spent a minimum of $1,000 per year on accounting administrative costs, internal costs, and legal fees. Of the small business owners in the survey,
- 23% spent $1,000 or less
- 31% spent $1,000 to $5,000
- 18% spent $5,000 to $10,000
- 12% spent $10,000 to $20,000
- 16% spent $20,000 or more
Even though it is hard to give a conclusive answer on how much an accountant costs for a small business, this poll shows that you can expect to spend between $1,000 to $5,000 if you are a small business. Note that this data is 5 years old – as expenses have increased, it could be much more these days. As a straightforward start-up business, you’ll need no less than 30 minutes to 2 hours of consultation, usually more than that, which can rack up to $600 quite quickly. This sort of meeting will go over your business structure, and the types of taxes you need to pay.
But that isn’t all you have to factor in: once you’re up and running, you’ll also need to look at financial analyses and get advice on how to ensure your business’ financial success. This can take another few hours, or more frequent, shorter meetings, racking up another bill for around $600.
The price of an accountant might seem daunting at first: Having to spend so much in the first stages of your business can be intimidating, but as established business owners will know, it is of vital importance to have a good accountant on your side. Spending money where it matters is a good skill to have, and an accountant is one of those expenses that may seem frustrating but is certainly worth it in the long run.
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