How Much Should I Pay My Accountant?
The question everyone thinks, but no one ever asks about.
If someone asked you to do your job for a third of your pay rate, would you? How well would you complete your job at that pay rate? Do you think the person asking you to do your job at that pay rate respects your job position? Anyone can provide a service, but the skill level of completing the service is what is most important. When it comes to having a service completed, we all want it done well, especially if we’re paying for it. This is no different when it comes to your accountant. Just like anything else in life, the more you practice something, the better you get at it. The more skilled an accountant becomes, the better service they can provide to their clients to save them money, faster.
Skilled accountants offer expert advice and insight on how to help your business grow and stay organized; all while staying current with the ever-changing tax laws and regulations. So when it comes to choosing your accountant, it is important that you compare your needs to how much experience the accountant has. If you have a more complex business structure, such as an LLC, considering an accountant who has history serving those types of businesses is essential. You must stay compliant, but you also want to save yourself from facing tax anxieties and tax penalties. How skilled an accountant is will play a large role in how fast and well your business can grow.
The average salary of an accountant with three years or less of experience is on average about $64,250. With 52 weeks in a year, 260 work days, 8 hours in a work day, a beginner accountant is averaging $32 per hour at work. The accountant new to the field is often only equipped to handle simple tax filings for the individual and standard bookkeeping needs based on whichever platform they know.
However, the average rate of a skilled accountant can range anywhere from $130 to $700 per hour. The amount of money your accountant can save you is based on their skill level in the field; their way to navigate through the IRS. They can do all your bookkeeping needs (which frees up your time to run your day-to-day) and then provide concise financial recommendations for you and your business. So when it comes to maximizing deductions, minimizing money spent on taxes and compliance, you get what you pay for.