How Much Does an Accountant or CPA Cost for a Small Business?

A CPA or other tax professional typically charges a small business a few hundred dollars for an owner's return and several hundred dollars or more for a business return. In the 2025 Fee Study from the National Association of Tax Professionals (NATP), the average minimum fee for a partnership or corporate return was $634, and the average hourly rate was $182 (Accounting Today, December 23, 2025).

What you pay depends less on the letters after someone's name and more on the work you need. Many businesses don't need a CPA for every job. This guide shows the current fee data, what each type of professional is allowed to do, and how to keep the bill down.

Key Takeaways

• For a basic Form 1040 with Schedules 1 to 3, NATP members reported average base fees of $280 for CPAs, $228 for enrolled agents (EAs) and about $185 for non-credentialed preparers.
• Adding a Schedule C for a sole proprietor added $123 to $135. Business returns (1065, 1120-S, 1120) carried an average minimum fee of $634.
• Only a licensed CPA firm can audit or review your financial statements. An EA has the same unlimited IRS representation rights as a CPA and can prepare any return.
• Clean, up-to-date books are the biggest fee lever you control. A preparer billing $182 an hour charges you for every hour spent sorting records.

How much does a CPA charge for small business taxes?

Most tax professionals price a return as a base fee plus add-ons for each extra form, schedule or state. The NATP 2025 Fee Study, as reported by Accounting Today, gives the most current public averages.

A few more findings matter when you compare quotes. More than half of preparers (54%) charge for any state return, so a multi-state business pays more. 83% raise their fees every one to two years, typically by 6% to 10%, so a quote from 2024 is probably out of date.

These are averages from a survey of tax professionals, not price lists. Accounting Today doesn't report the sample size, and fees vary by location. Schedule C fees, for example, ran higher in larger communities. Use the averages as a sense check, not a promise.

What does that mean for a typical small business?

Take a single-member LLC owner with a Schedule C. Using the averages above, a CPA's fee would be about $280 plus $123 to $135, or roughly $400 to $415, before any state return. An S corp or partnership pays for two returns: the business return (minimum around $634 on average) and each owner's personal return.

You may see higher figures elsewhere. Several cost guides list ranges like $150 to $400 an hour without a source. We've used only the NATP figures because they're recent and published.

Why do CPA fees vary so much?

The same return can cost very different amounts from two firms. These are the main drivers.

• Credential. CPAs charged about $52 more than EAs for the same basic 1040 in the NATP data.
• Number of forms. Each schedule, such as Schedule C, D or E, adds to the base fee.
• State returns. More than half of preparers charge for state returns, and some states, including New Jersey, require separate business tax filings.
• Location. NATP found Schedule C fees were higher in larger communities.
• Entity type. A business return starts well above a personal return.
• Your records. If your books aren't reconciled, someone has to do that work before the return can be prepared. At an hourly rate, that time lands on your invoice.

What accountants earn vs what you pay

The U.S. Bureau of Labor Statistics puts the median pay for accountants and auditors at $83,680 a year, or $40.23 an hour, in May 2025 (BLS). Bookkeeping, accounting and auditing clerks earned a median of $24.36 an hour (BLS).

That gap with the $182 average billed rate covers the firm's overhead, software, insurance and profit. It also shows why paying a CPA rate for bookkeeping work is expensive. Routine data entry and reconciliations rarely need a licensed professional.

Do you need a CPA, an enrolled agent or a bookkeeper?

You need a CPA for attest work, such as audited or reviewed financial statements. For tax returns, an EA or another qualified preparer can do the same job. For monthly books, a bookkeeper is usually enough.

The IRS explains the credentials on its page about understanding tax return preparer credentials. In short:

• CPAs are licensed by state boards of accountancy. Along with EAs and attorneys, they have "unlimited representation rights before the IRS."
• Enrolled agents are licensed by the IRS itself. The IRS calls EA status "the highest credential the IRS awards" (IRS). EAs complete 72 hours of continuing education every 3 years.
• Annual Filing Season Program participants have limited practice rights before the IRS.
• Other paid preparers need an IRS Preparer Tax Identification Number (PTIN). The IRS says anyone can be a paid preparer "as long as they have" a PTIN (IRS). They can prepare returns but can't represent you before the IRS.
• Bookkeepers keep your records, reconcile accounts and produce monthly reports. No license is required.

Who can do what

Attest work is reserved for licensed CPA firms under state accountancy laws. In New Jersey, the State Board of Accountancy licenses CPAs and firms. If a lender, investor or government contract asks for audited or reviewed statements, that's the point where you must hire a CPA firm.

For most other jobs, you have choices. An EA can prepare your returns and represent you before the IRS with the same rights as a CPA. Many small businesses use a bookkeeper for the monthly work and a tax professional once a year.

How to keep your accountant's bill down

Clean books before tax season cut the hours a preparer bills. Here's what helps.

1. Reconcile every month. Match your bank and card accounts to your books. Our monthly bookkeeping checklist lists the steps.
2. Catch up before you hand over records. If you're months behind, a catch-up project is usually cheaper than paying hourly rates in March. See how to catch up on bookkeeping.
3. Send a complete package once. Profit and loss, balance sheet, payroll reports, 1099s you issued and received, and asset purchases. Piecemeal records cost more time.
4. Ask for a written quote. Ask what's included, what each extra form or state costs, and whether advice calls are billed.
5. Match the professional to the job. Pay CPA rates for CPA work, and a bookkeeper's rate for bookkeeping.

To see what the monthly side might cost, try our bookkeeping cost calculator or read our guide to how much bookkeeping costs.

Red flags when you hire a tax professional

The IRS publishes warning signs every filing season. From its 2026 tax tips:

• Fees based on your refund. The IRS says to avoid preparers "who base their fees on a percentage of the refund" (IRS Tax Tip 2026-11).
• No signature or PTIN. Paid preparers must sign the return and include their PTIN. A "ghost" preparer refuses to do either (IRS Tax Tip 2026-27).
• Blank returns. The IRS says to never sign a blank or incomplete return (IRS Tax Tip 2026-27).

You can check a preparer's credentials in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. Check a CPA license with the board of accountancy in the CPA's state.

How Asquaire can help

Asquaire Financials is not a CPA firm, and we're upfront about that. Our founders are ACCA-qualified with Big Four experience, and we prepare returns under an IRS PTIN. We don't provide audits or reviews, and we don't represent clients before the IRS. If you need those, you'll need a CPA firm, an EA or an attorney.

What we do is the work that makes up most of the bill: monthly bookkeeping from $249 a month, and tax preparation from $199 for an individual return and $650 for a business return (1065 or 1120-S). We also work behind the scenes for CPA firms under confidentiality agreements, so we know what a preparer needs to see.

Frequently asked questions

How much does a CPA charge per hour?

The NATP 2025 Fee Study reported an average hourly rate of $182 for tax professionals, with half charging between $129 and $250. Complex or disorganized work usually takes more hours.

How much does it cost to have a CPA do business taxes?

NATP members reported an average minimum fee of $634 for a partnership or corporate return. Complex returns, multiple states or messy books cost more. You'll also pay separately for each owner's personal return.

Is an enrolled agent cheaper than a CPA?

In the NATP data, the average base fee for a basic 1040 was $228 for EAs and $280 for CPAs. EAs have the same unlimited IRS representation rights as CPAs and can prepare any return.

Does a small business need a CPA?

Only for some jobs. You need a licensed CPA firm for audited or reviewed financial statements. Tax returns can be prepared by any PTIN holder, and an EA or attorney can also represent you before the IRS. Monthly bookkeeping doesn't require a license.

The bottom line

Budget a few hundred dollars for an owner's return, more for a business return, and around $182 an hour for extra work, based on the latest NATP averages. You'll pay less if your books are clean and you hire the right professional for each job. A CPA is essential for audits and reviews, and an EA is a full alternative for tax work.

Want your books ready before tax season? Contact our team for a free review. Our small business tax deadlines for 2027 list the dates to plan around.

This article is general information, not tax advice for your situation.