How much are CPAs fees per hour on average?
What is the cost per hour (or fixed packages prices) for common services that a small business typically needs from a CPA?
I'm not a CPA, I'm a Chartered Accountant (same job, different professional body).
I don't believe in charging by the hour. It's about putting packages together that solve your problems, and having a fixed price for that (which can usually be paid monthly).
To become a CA you have to do an accounting degree and then the Chartered Accountants Australia and New Zealand (CAANZ) Graduate Diploma, and have been working in the industry for at least 3 years. Additionally you are required to do 40 hours per year of Continuing Professional Development to keep up-to-date on any changes in legislation, the tax act and other associated topics. We are also required to hold certain certificates, such as a Certificate of Public Practice, and Tax Agent Registration to work in the industry, and have appropriate insurances. So it costs us a lot to just open the doors.
As I said at the start, I have fixed fee arrangements. That means you know exactly what the job will cost you before we start. Different packages have different prices so I can't really give you an idea, just that you're paying for knowledge and for someone else to do the things you generally hate - more cost effectively than if you had done it yourself. It's like why spend a couple of hours cleaning you car when you can pay for it and have that hour to work on your business (or something else). What is your time worth?
An accountant with a CPA would have years of experience under their belt to get to where they are. You can bet that they won’t be fresh eyed graduates or junior accountants. To be a CPA, an accountant would need to complete the CPA program, have professional working experience for a number of years and maintain their qualification every year.
There’s another well-respected certification called Chartered Accountant or CA. Generally, both will be good at growing or turning around businesses and handling complex cases.
Naturally, their cost will range in the hundreds per hour. You should expect upwards of $200 per hour if you are consulting. Make sure you understand whether your business needs an accountant with a CPA or CA and who best to hire and engage with.
