How Much Does a CPA Cost? Complete Breakdown for Small Businesses

One of the most common questions we hear is also the hardest to answer directly: how much does a CPA cost? Prices vary based on services, location, complexity, and the CPA's experience. But that doesn't mean you should walk in blind.

Here's a real-world breakdown of typical CPA pricing so you know what to expect — and how to spot a fair deal when you see one.

Hourly Rates

CPA hourly rates typically fall in this range:

• Staff accountants: $75–$150/hour
• Senior CPAs: $150–$350/hour
• Specialized expertise (tax controversy, complex planning): $300–$500+/hour

Hourly billing makes sense for occasional consultations or one-off questions, but it can get unpredictable fast for ongoing work.

Tax Preparation (Flat Fees)

Most CPAs price tax prep as a flat fee by return type:

• Simple individual return (W-2 only): $200–$450
• Individual with Schedule C (self-employed): $400–$900
• Multi-state or complex individual: $600–$1,500
• Partnership/LLC return (1065): $700–$2,500
• S-Corporation return (1120-S): $800–$2,500
• C-Corporation return (1120): $1,000–$3,500

Bookkeeping (Monthly Retainer)

Ongoing bookkeeping is almost always billed monthly, based on transaction volume and complexity:

• Very small business (<100 transactions/month): $200–$500/month
• Small business (100–500 transactions): $400–$900/month
• Mid-sized business (500–1,500 transactions): $800–$2,000/month
• Catch-up bookkeeping (backlog): $150–$400 per month you're behind

Payroll Services

• Base fee: $40–$100/month
• Per-employee fee: $4–$12/employee per pay period
• Year-end filings (W-2/1099): $5–$15 per form

Business Advisory & Tax Strategy

More consultative services are often billed as project fees or monthly advisory retainers:

• Entity selection & setup consultation: $300–$1,200
• Annual tax planning: $500–$2,500
• Monthly CFO/advisory retainer: $1,000–$5,000/month
• IRS audit representation: $150–$400/hour

What Drives the Price?

1. Complexity. Multiple income sources, rental properties, crypto, multi-state income — each adds time.
2. Organization. Clients with clean books pay less. Disorganized records take hours to untangle.
3. Deadlines. Last-minute work often comes with a rush premium of 25–50%.
4. Experience. A CPA with 15+ years in your industry costs more — but usually saves you more too.
5. Service model. Virtual-first firms often cost less than traditional brick-and-mortar practices.

Red Flags in CPA Pricing

• No written engagement letter. Any legitimate CPA provides a scope and fee agreement in writing.
• Fees based on your refund size. This is an ethics violation for CPAs. Walk away.
• Extreme low prices. A $99 business tax return is almost certainly going to miss deductions or be filed late.
• Vague “it depends” pricing with no ranges. A good CPA can give you a ballpark after a 15-minute conversation.

How to Know If You're Getting Good Value

Price alone isn't the right metric. The better question is: what am I getting for it?

• Proactive tax-saving recommendations (not just filing)
• Year-round availability for questions
• Clean, understandable reports and explanations
• Deadline management so you never miss a filing
• IRS representation included when needed

A CPA who saves you $5,000 in taxes and fees $1,500 is a much better deal than one who charges $500 but misses deductions.

The Bottom Line

For most small businesses and self-employed individuals, a good CPA relationship costs somewhere between $1,500 and $6,000 per year all-in, depending on scope. That's a small investment compared to what a quality CPA typically saves in taxes and prevents in penalties.

If you're shopping for a CPA, ask for clear, written pricing up front and a description of exactly what's included. Transparency should never be optional.