Running a small business often feels like juggling ten things at once. You manage clients, staff, suppliers, and growth. On top of all that, come bookkeeping, taxes, and payroll. For many owners, this is where stress peaks. Accounting isn’t just paperwork. It is the backbone of financial health. But how much should you expect to pay for it?
The answer isn’t simple. Prices shift depending on the size of your business, the services you need, and the expertise you choose. This guide will break down the most common models, show average price ranges, and explain where hidden costs creep in. By the end, you’ll know what’s fair, what’s too low, and when it makes sense to invest more.
Why Accounting Matters Beyond the Numbers
Accounting is more than balancing spreadsheets. It gives you clarity on where your money is going. It keeps you compliant with tax rules. Most importantly, it frees up your time so you can focus on growth.
A small mistake in tax filing can trigger penalties. A missed payroll run can hurt staff morale. That’s why many firms now bundle accounting and payroll services for small business. It’s not just convenient. It ensures everything ties together in one system.
Think of accounting as insurance. It protects your business from errors, saves time, and often highlights ways to save money.
The Cost Puzzle: What Shapes the Price
Not all businesses pay the same for accounting. Costs shift with a few key factors:
Business Size and Complexity
A freelancer with a few invoices per month pays far less than a company with 20 employees and multiple revenue streams.
Services You Need
Do you just want bookkeeping? Or do you need tax prep, reporting, and payroll support? Full accounting and payroll services for small business will naturally cost more.
Frequency of Service
Monthly bookkeeping has a different price tag than once-a-year tax filing. Ongoing support gives better accuracy but adds to the cost.
Expertise of the Accountant
Rates rise with experience. A junior bookkeeper might cost less, but a seasoned CPA ensures fewer errors and stronger advice.
Pricing Models Explained
When it comes to paying for accounting help, there’s no single rule. Most firms use one of three common models, each with its own pros and cons.
Hourly Billing
Some accountants charge by the hour. This is common for small, one-off jobs. It’s flexible, but it can get expensive if tasks take longer than expected.
Monthly Retainer
Many businesses prefer a fixed monthly fee. This covers ongoing tasks like bookkeeping, payroll, and reports. It’s predictable and easier to budget for.
Per-project Pricing
This model works well for specific jobs. For example, tax filing or an audit. You agree on a flat price up front. The risk is in scope creep. If the job expands, so may the bill.
The Numbers: Typical Price Ranges
Here’s a quick view of what businesses usually pay for accounting today.
| Service Type | Low-end | Mid-range | High-end |
| Basic Bookkeeping | $200–$500 / month | $600–$1,000 / month | $1,500+ / month |
| Tax Preparation (Small Business Return) | $400–$800 | $1,000–$2,000 | $3,000+ |
| Full-Service Monthly Accounting | $1,000–$1,500 | $2,000–$5,000 | $6,000+ |
| Accounting and Payroll Services for Small Business | $500–$1,000 / month | $1,200–$2,500 / month | $3,000+ / month |
These numbers vary by region, experience, and complexity. But they give a realistic idea of what you might expect.
The Hidden Costs Nobody Talks About
Beyond listed rates, extra charges can pop up:
- Catch-up bookkeeping if your records are messy.
- Payroll setup fees.
- Rush fees during tax season.
- Extra charges for more revision rounds or detailed reports.
There’s also the cost of your own time. If you spend hours doing books yourself, that’s time not spent growing your business. When you factor this in, the cost of small business accounting services often pays for itself.
What’s Fair for Small Businesses?
What you should pay depends a lot on where your business is in its journey. Let’s break it down by size so you can see what’s typical.
Micro-businesses and Solopreneurs
For freelancers or micro-businesses, $200 to $800 a month is common. Many use software tools and hire an accountant just for taxes.
Expert Tip:
If you only need help at tax time, keep your books tidy all year with software like QuickBooks or Xero. This makes your accountant’s job easier and lowers your bill.
Growing Teams (5–20 employees)
This is where costs rise. $800 to $2,500 per month is realistic. At this stage, payroll, taxes, and reporting all become more complex. That’s why the cost of small business accounting services grows as you hire more people.
Quick Example:
A marketing agency with 12 staff might pay around $1,500 monthly for bookkeeping, payroll, and quarterly tax filings. This is much cheaper than hiring a full-time finance manager.
Established Small Businesses (20+ employees)
Expect $2,500+ per month. At this level, outsourcing often makes more sense than building an in-house team. It gives you expert support without the overhead of full-time staff.
Expert Tip:
Consider outsourcing to a firm that offers scalable packages. That way, if you expand or add new services, your accounting support grows with you without sudden cost jumps.
Getting the Best Value without Overpaying
You don’t want the cheapest option, but you also don’t want to overspend. Here are some ways to get the right balance:
- Look for bundled services. Many firms package bookkeeping, taxes, and payroll at a better rate.
- Ask about the tools they use. Integration with software like QuickBooks or Xero saves you money.
- Clarify what’s included. Reports, tax filings, payroll runs—make sure you know upfront.
- Think ROI. The cost of small business accounting services is more than an expense. It’s an investment in accuracy, peace of mind, and often savings you wouldn’t spot yourself.
Final Thoughts
Accounting isn’t just about crunching numbers; it’s about protecting your business and giving you room to grow. What you pay will always depend on your size, your needs, and the kind of expertise you choose.
A freelancer might only need light bookkeeping, while a growing company with staff and payroll will pay more. Either way, the right accountant saves you time, reduces stress, and keeps your business running smoothly.
If you’re tired of losing weekends to spreadsheets or stressing about tax deadlines, it’s time to get help you can rely on. With POS Circle, you’ll have a partner that handles the details while you focus on running your business. Get in touch with us today!
Frequently Asked Questions
1. How much should a small business budget for accounting each month?
It depends on your size and needs. A solo freelancer may spend $200–$500 a month, while a business with staff and payroll could see $1,000–$2,500 or more. Think of it as buying peace of mind, as it saves you far more than it costs.
2. Is it cheaper to handle my own bookkeeping?
On paper, yes. But factor in your time and the risk of mistakes. Many owners realize they lose more money fixing errors or missing deadlines than they would have spent hiring an accountant.
3. What’s usually included in accounting services?
Basic bookkeeping, tax prep, and financial reports are standard. Many firms now also include payroll, making life easier for growing teams. Always ask what’s covered so there are no surprises later.
4. Why do prices vary so much between accountants?
Experience plays a big role. A junior bookkeeper may charge less, while a seasoned CPA costs more but brings deeper expertise. Location and service packages also affect the price.
5. When should I upgrade from basic bookkeeping to full-service accounting?
The moment you feel your weekends disappearing into spreadsheets, or when payroll starts to get messy, it’s time. Investing earlier often saves money down the road by keeping your finances clean and stress-free.
