Average Cost of Tax Prep for Small Businesses & Other Tax Facts

It is best to present them with well-organized records to increase your chance of getting fair rates. When it comes to buying a service, I want you to save money just as much as you do. But when you hire experts—like tax pros, doctors and mechanics—it’s worth it to spend more cash to get the job done right the first time. Paying startup cpa an extra $100–300 on the front end may be worth it in the long run, especially when that expert is thorough, accurate, and finds ways to cut your tax bill. An average tax preparer will probably charge less than a high-quality pro who has loads of experience. But when it comes to the IRS and your money, I’m not playing games.

The National Association of Enrolled Agents (NAEA) maintains a directory of EAs. You can search the directory by location, specialties, language, experience, and other factors. If you have a pretty simple tax return, you may not need anything more than a free tax filing service.

I & I Pro Accounting & Tax Services Corp

But for a little bit more, you can get a trustworthy tax advisor who cares about your situation, helps you understand tax changes, and ensures your tax bill is as low as possible. You’ll notice most of these averages are higher https://www.bookstime.com/ than the $220 I mentioned above. That’s because that cost is for a simple 1040 tax return with no itemization. But most people who use a tax pro have more complicated situations that require extra forms and documents.

• For example, if you were self-employed and needed to file a Schedule C, the average fee increased to $457.
• The credentials of the preparer, as well as their experience, also have an impact on the fees that are charged.
• Additionally, the average CPA hourly rate may fluctuate depending on the level of experience and training that a certified public accountant has.
• Each property owned will require a different entry using Schedule E, which delineates income and expenses for that property.
• The actual cost of launching a tax preparation agency may be higher or lower depending on your business and budget.

Finding inconsistencies before you file with a local or state agency can save time down the road. Residents of Massachusetts and Maine have until April 17, 2024, because of state holidays. Paying less for quality services is ideal, but a higher fee may be worthwhile in the end for your peace of mind. Think about your priorities and consider what’s most important to you. While the initial minimum fee may be low compared to some of the other methods in this list, be prepared for your final bill to potentially be a bit higher than the initial fee. As we mentioned earlier, flat-rate billing has become more popular in recent years, with 9% fewer firms stating they bill hourly than three years ago, so these figures will also be important for you to know.