What’s the average price of an Accountant?

What is an Accountant? 

Whether you’re a tiny startup or a corporate giant, every business needs to keep accounts. Put simply, an accountant manages a company’s financial records. This involves a complex range of duties including tracking revenues and expenses, offering financial consultations, and ensuring your company meets financial regulations. 

While some large businesses can afford to employ salaried accountants, not everyone has that luxury. If you’re self-employed, a freelancer or a small business, you might not have the time or understanding of the Australian financial system to manage your accounts. Hiring an accountant can help you to keep your financial records in order, freeing up more time to focus on your business. 

How much does an Accountant cost?

The cost of an accountant can vary depending on the size of your business and the services you require. It also depends on if you want to pay your accountant by the hour, monthly, or per annum. To give you a general idea, we’ve put together the average cost of an accountant based on local Australian professionals: 

What changes the cost of an Accountant? 

The key factors impacting the cost of an Accountant are: 

• The size of your business

• The service you require

• Length of time (One-time service versus ongoing service) 

The size of your business

There’s no one size fits all when it comes to accountancy fees. The main reason for this is because businesses vary so dramatically in size. To give you an idea, small businesses tend to spend the following on accounting per year:

• Average yearly spend on accounting for small businesses - $5,000

Remember, this number can change dramatically based on whether you need to hire someone for a one-time service or an ongoing basis, and the type of service you require. 

The service you require 

Accounting covers a broad spectrum of services, with these coming in at different costs. If you’re not sure what your business needs to lift it off the ground or drive revenue, most accountants will provide a free initial consultation to help you decide where your money would be best spent. 

Length of time 

You can choose a one-time or ongoing accountancy service depending on the nature of your business and the service you require. You may need to hire someone for tax preparation as a one-off service, or you might prefer a monthly service instead. 

Why hiring an Accountant can save you money 

When running a business, it’s not easy to maintain a healthy cash flow, especially if you don’t have experience with the Australian financial system. If you’re considering handling your finances yourself, remember that hiring an expert to do it properly can save you money in the long run. Here are three reasons why: 

• Avoid tax penalties - If you’re not up to speed with recent changes in regulations for business taxes, it could be very easy to fill out your taxes incorrectly (or not fill them out at all!) which could result in you having to pay hefty tax penalties. Hiring an accountant ensures you won’t incur any unnecessary costs.

• Helps you to save - Your accountant will know your financial ingoings and outgoings right down to the very last detail. By keeping track of where your money is going, they’ll be able to advise you on where you can cut costs. 

• Plan for the future - Your accountant will be able to assist you in planning for the future using the insights they’ve gained from tracking your financial records. They’ll be able to offer expert advice on how to boost your performance and grow your business, whether you’re wanting to increase your revenue or scale globally. 

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