Is it worth hiring an accountant for a small business?
The answer is a big "YES"! Accounting services for small businesses are often a valuable investment, offering benefits such as tax optimization, risk and compliance management, better decision-making, accurate financial data, time savings, and overall business growth.
But it depends on how and in what capacity you hire—whether in-house, hourly, or on a project basis.
Small businesses especially require accountants when financial records become difficult to manage, during complex tax situations, when expanding, or when improving financial health is a priority.
An accountant saves time, money, and stress—helping businesses thrive.
Let's explore the five benefits that small businesses can leverage by hiring accounting services.
1. Simplified Financial Management
Managing invoices, expenses, and payroll can become overwhelming without the right systems. Professional accountants bring expertise and tools, such as cloud-based software, to streamline these processes.
Notably, 70% of CFOs rely on Excel for financial budgeting and forecasting, highlighting the need for modernization.
Modern accounting services automate tasks like invoicing and expense tracking, saving time and reducing errors, allowing you to focus more on business growth.
2. Tax Compliance and Cost Savings
Navigating tax season can be daunting, but accounting services make it manageable. With tax laws continually evolving, staying compliant is essential. A professional accountant ensures you meet deadlines and avoid penalties while identifying potential deductions and credits.
Interestingly, 71% of small companies outsource their tax preparation, underscoring the value of expert assistance. citeturn0search1 Experts can optimize your tax strategy, ensuring compliance and maximizing savings.
3. Effective Cash Flow Management
Cash flow is vital for your business's health. Alarmingly, 82% of business failures are due to poor cash flow management. Accounting services provide clarity on your income and expenses, helping you avoid shortages and plan for significant investments. Virtual CFO services have become increasingly popular, offering high-level financial oversight without the expense of a full-time hire.
4. Business Growth Insights
Small business accounting isn't just about record-keeping; it's a catalyst for growth. Professional accountants offer insights that transform data into actionable strategies, from pricing adjustments to expansion plans. Studies indicate that businesses utilizing external financial advice experience an average 11.5% increase in additional revenues.
In 2025, virtual CFOs are making strategic expertise more accessible, providing guidance on budgeting and investments to drive long-term success.
5. Peace of Mind and More Time for Your Business
Entrusting your finances to experts alleviates concerns about missed deductions, inaccurate records, or unexpected audits. A significant number of CFOs—nearly 40%—do not completely trust the accuracy of their organization's financial data.
Outsourcing accounting functions not only enhances accuracy but also frees up time and mental energy, enabling you to focus on innovation, marketing, and customer engagement.
How much does an accountant cost for a small business?
The cost of an accountant for a small business depends on various key factors such as business size, years of experience, required services, and location. An accountant in New York may cost more compared to hiring one for the same requirements in Nevada.
However, when it comes to hourly rates, the range is typically between $50–$400+. The annual cost usually falls between $1,000–$5,000+.
For tax preparation, the cost depends entirely on business complexity. Before hiring an accountant, compare multiple quotes, consider cloud-based accounting options to reduce costs, and clearly define the services you need to avoid unnecessary expenses.
You can also opt for remote virtual bookkeeping assistants or accountants, who usually work on an hourly basis and manage your books throughout the year.
What type of accountant is best for a small business?
The best type of accountant for a small business depends on its specific needs.
- If you need basic financial record-keeping, a bookkeeper is often sufficient. With advancements in AI and the availability of remote accountants, costs can be significantly reduced.
- For complex taxation, audits, or strategic financial planning, an experienced CPA is recommended.
- In the U.S., for tax-specific needs such as tax preparation, IRS audits, handling tax appeals, or dealing with tax collection, an Enrolled Agent (EA) is the best choice. EAs are federally authorized tax professionals.
What is the difference between accounting services and bookkeeping services?
- Bookkeeping is about recording financial data. Bookkeeping services enter financial transactions into software like Xero, QuickBooks, Wave, Excel, or Google Sheets.
- Accounting is about interpreting and analyzing that data. Accountants, along with bookkeeping, prepare financial statements, generate reports, and provide financial insights. They are usually professionals with accounting or commerce backgrounds. Nowadays, if you ask ChatGPT or a similar AI tool to provide insights on a report or statement, it can do that too.
How MyTasker Can Help
At MyTasker, we're dedicated to empowering small business owners with expert accounting services. From managing your books and optimizing cash flow to ensuring tax readiness, our team has you covered. Whether you need bookkeeping, financial reporting, or virtual CFO support, we'll customize a solution that allows you to concentrate on growing your business.
Take charge of your finances today with MyTasker! Contact us now to explore how we can support your success.
