As a small business owner, you’re probably already wondering how much you’ll have to pay the IRS this tax season. You should never have to wonder how much you will pay for a CPA firm to do your taxes. The average cost of a CPA firm for personal and business taxes is approximately $1,000 to $1,500 or more. The cost of a CPA firm depends on a number of factors, so it is not possible to give a definitive answer on how much they charge for tax returns. In this article let’s briefly discuss how much CPA costs per month.
How much should I expect to pay a CPA?
It depends on what you are trying to accomplish and the size of your current portfolio or business.
If you’re looking into tax preparation, reputable companies will charge the average landlord between $1,800 and $2,500. If you have a very small portfolio, it will be closer to the $1,500 – $1,800 range. And if you have a large wallet, you’ll often see bills over $3,000. The price also affects your other streams of income, the number of statements that need to be reported, etc. Entities that are not single-member LLCs must file their own tax returns separately from their personal tax return. The factors that influence the price are the number of estates, the number of partners, the number of assets held and the number of assets held and business activities.
How much does a small business accountant cost per month?
The average cost of an accountant for a small business is $1,000 to $5,000 per year, including all monthly expenses. In addition to budgeting and fundraising, debt consolidation, tax strategies, buying and selling businesses, and fundraising, an accountant can provide many more services to your business.
- Tax returns for single member LLC without a tax election (individual returns): about $300 to $500
- Tax returns for partnerships and S corporations: about $700 to $1,000
- Total cost of an individual and business tax return: about $1,000 to $1,500
Hiring a CPA firm to do your personal or business taxes is often more expensive than doing it yourself or using software like TurboTax, but you can reap lasting tax benefits and avoid mistakes by choosing a firm that has a CPA and bookkeeping.
More On How Much a CPA Cost Per Month:
Can a CPA firm help me save money?
Yes, a CPA can help you save money in the long run. This is because a CPA will likely help you take more tax deductions and apply credits that you didn’t know you qualified for. By reducing your tax due, especially over multiple years, you can save thousands of dollars. You can take deductions when filing your own taxes, but many small business owners don’t deduct as much as they should simply because they don’t know all the deductions available to them. You can also reduce the risk of paying penalties and interest by hiring a CPA. There are many tax filing errors that small business owners can make that will result in penalties. An accounting firm can save you more because your books and taxes will be on the same page.
When a CPA prepares your tax return, they are less likely to make those costly mistakes in the first place. And if you do make a mistake, a CPA can deal with the IRS on your behalf, for example, if you need to appeal or send letters.
What affects the cost of my tax return?
Most tax companies have not set their rates for tax returns as a number of factors influence the cost. Also, many CPAs don’t know what the costs might be until they start making their returns. These are some of the most important factors that can increase the cost of working with a CPA firm.
The estimated cost of tax returns
- Cost of a federal business return: about $700 to $1,000
- State Business Return Cost: About $200 to $500 (per state)
- Cost of an individual federal return: about $300 to $500
- Cost of individual state returns: about $100 to $300 (per state)
You’ll likely pay more for a CPA if you need multiple tax returns. You may need to file more returns if:
- You own an S corporation or partnership
- Do business in multiple states
- You haven’t filed in years
Owners of corporations and partnerships must file two returns: their individual return and their business return. Single member LLCs without a tax election need only file their individual return. It generally costs more to prepare business returns than individual returns.
You may also need to file additional personal and business returns if your business operates in multiple states, which would cost you more. For example, a Florida-based business owner does not need to file a state income tax return because the state does not require it. But if the business owner stores his inventory or has sales in, say, California, he would have to file a business return for that state (and, in turn, a personal return there as well).
If you need to make returns over multiple years, that can add to the cost of working with your CPA. It is quite common for business owners to be a few years behind on their tax returns, especially if they have never worked with a CPA before. It costs more to make annual declarations, but it is worth it in many cases to avoid possible audits and sanctions.
In the end…
There is no set cost for a CPA firm to do your taxes, but most firms take the same factors into account when reducing tax returns. Although it varies, the total cost of a personal and business return made by a CPA can cost between $1,000 and $1,500. That depends on a wide range of factors, such as the type of business, how many owners, investments, the state you live in, the number of results, and possibly more. Hiring a CPA firm to do your taxes will typically cost more than tax software, but has the potential to save you a lot more on taxes over time. Plus, there are ways to lower the cost of your tax returns.
Before you go, I hope that the above article related to how much CPA costs per month will be helpful and informational for you.