Most firms dodge answering how much an accountant costs with a familiar phrase. It depends.
But on what, exactly?
We found the perfect person to ask: indinero director of business development John Rickard. Because if anyone knows what drives pricing for outsourced accounting, it’s someone who has personally built quotes for hundreds of entrepreneurs interested in our services.
Here’s what we learned.
Key Takeaways
$5,000 – $10,000/month is the high end, reserved for businesses with significant complexity, like manufacturers managing raw materials and finished goods, SaaS companies with deferred revenue schedules, or ecommerce brands with many hundreds of transactions across multiple online platforms.
$750/month is the lowest you can expect to pay for high-quality outsourced accounting. Imagine a young company or startup with fewer than 75 transactions, no inventory or deferred revenue complexity, less than $500K in annual revenue, and fewer than 5 employees.
$1200 – $1800/month is typical for many small businesses. This is an organization with ~200 transactions, $1M or so revenue, a few employees, and a little bit of complexity requiring a controller’s attention, but not much.
What Influences the Cost of Outsourced Accounting?
People sometimes assume accounting fees are based on business size or revenue. These are related, but what really matters is how much bookkeeper vs accountant time you’ll need. The most important pieces are:
- Monthly transactions require (less expensive) bookkeeper time.
- Complexity requires (more expensive) accountant or CFO time.
Monthly Transactions
John shared these broad estimates, noting a linear relationship between price and volume. Volume mostly relates to bookkeeping, but also impacts how long a controller (the senior-level accountant overseeing) needs to reconcile accounts and close your books.
| Volume | Estimated Cost |
| 50-75 | $750 |
| 100-125 | $900 |
| 150+ | $1000 – $1500 |
Complexity
Some transactions take more time, and a higher level of expertise, to handle. Controllers can be billed at ~$150 an hour, so even just a few extra hours per month can contribute $500-$600 to your cost.
| Task | Commonly Impacted Sector |
| Inventory management | E-commerce, retail, and manufacturing companies with diverse inventories to track |
| Deferred revenue | SaaS companies with subscription-based businesses that bill annually but need to recognize revenue monthly |
| Grant tracking | Nonprofits and research institutions that report on how specific grant funds are used |
| Crypto accounting | Web3 companies accepting payments in cryptocurrency, or holding assets on their books as an inflation hedge |
| Commission calculations | Real estate, insurance, or other sales-driven organizations that pay variable monthly commissions |
| Intercompany financial consolidation | Franchises or holding companies with multiple entities, such as a real estate firm that manages multiple property-owning LLCs |
| Forecasting | Startups and investor-backed companies preparing multi-year forecasts in preparation for a funding round |
What’s the Average Cost of Tax Preparation by a CPA?
This is a little different than month-to-month bookkeeping or accounting; most CPAs charge by the form filed rather than a flat monthly fee or hourly rate.
When you first move on from self-service tax software to a CPA, it can be a bit jarring, with the average firm charging at least $750 per filing. However, the average CPA doesn’t help clients maximize tax savings. Some are overwhelmed, while others don’t have the up-to-date knowledge to apply effective strategies.
Indinero returns move through three layers of oversight before being filed:
- The original preparer
- Managerial review
- Senior managerial review
This process ensures accuracy, compliance, and most importantly, the opportunity to uncover tax-saving opportunities that other firms overlook.
Despite charging a premium compared to competitors, over 50% of our clients save money on taxes after switching to our services. Complexity dependent, we charge $2000 to $4500 per business tax filing, with additional fees for foreign corporation requirements, additional states or cities, or additional forms.
What You’re Paying for Beyond the Books
Earlier in his career, John was on the business’s side of the table, so he knows firsthand what it’s like to call your CPA and wait for numbers that never arrive.
“The biggest differentiator in this industry isn’t just accuracy,” he told me. “It’s communication.”
He described the all-too-common frustration of calling and getting radio silence. “From February through April 15, they’re swamped. And then as soon as tax day passes, they all go on vacation and aren’t really back to work until after Memorial Day.”
We understand how important real-time access to your financials can be, which is why we promise a 24-hour response time to any question you might have. Even during tax season, and even before Memorial Day.
Confidential Monthly Meetings With a Dedicated Point of Contact
Running a business can be isolating. And for many business owners, there’s no one you can share the full financial picture with.
- You probably shouldn’t disclose everything to employees.
- You may have colleagues, but don’t want to disclose everything to them either.
- Family and friends are either uninterested or not great places to seek counsel.
So, who do you talk to?
There are online firms, or even local CPAs, who might charge a small business $500/month. But they’re transactional; they just send reports. You’ll never have a dedicated point of contact that gets to know you and your business.
That’s why for some clients, monthly meetings with their indinero controller is the most valuable part of the service. It’s a time to talk through the good, the bad, and the ugly. You can voice your fears and explore opportunities, all while getting clarity on what’s really going on in your business.
Generally Accepted Accounting Principles (GAAP) Compliance
Any company that’s interested in bank financing or venture capital will need GAAP-compliant accounting. Oftentimes, competitors will do financials on a cash basis (rather than GAPP-compliant accrual basis), but statements prepared this way aren’t as useful or credible to external stakeholders.
Beyond stakeholder approval, accrual-based accounting can help you preserve cash flow by strategically accelerating expenses or deferring revenue. If you’d like to explore if this is an option for your business, read our article on accrual accounting here or consider reaching out for a free consultation with an indinero accounting expert.
Questions To Ask Before Shopping for Quotes
- Are you a nonprofit with grants to track? Your organization probably doesn’t have many transactions for a bookkeeper to manage, but grant tracking adds a unique layer of complexity to your books.
- How many transactions per month do you handle? Fewer than 50 won’t tax a bookkeeper much, but more than 150 certainly will.
- Are you a SaaS company with deferred revenue to consider? This will take some time for a qualified controller to handle.
- Is outside investment on the horizon? You’ll need to make sure your CPA uses GAAP reporting.
- Are you interested in a strategic partner, or simple monthly reports? There are transactional CPA firms you could work with, but you’ll miss out on deeper insights from expert tenured controllers.
So, What Should You Expect to Pay?
Here’s your simplified cheat sheet:
| Business Type | Estimated Monthly Cost |
| Young startup | $750 |
| Typical SMB | $1200 – $1800 |
| High-complexity or high-volume operation | $5000 – $10,000 |
Your exact price will vary, but now you have a better idea of what exactly is being charged for.
Conclusion
Ready to stop guessing what accounting should cost and get the clarity you need to grow?
Schedule a free consultation today. We’ll review your needs and build a transparent quote that makes sense for your business.
