If you’re an individual or a small business owner in Dallas looking to manage your finances effectively, hiring an accountant is a smart decision.
Doing so is a significant investment and so in this guide, we will take a look at the benefits of hiring a qualified accountant to help you keep your financial affairs in order.
Keep reading until the end to determine whether the cost of hiring an expert is worth the cost for you.
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So, How Much Does an Accountant Cost in Dallas?
Let's first examine what kinds of costs you are looking at when it comes to hiring a professional to do your taxation or day-to-day business bookkeeping.
In Dallas, it depends on the payment method used. It could either be hourly-based, monthly-based, or fixed-fee billing.
As of August 2023, the average cost (median) of a junior accountant in Dallas is $29 per hour, $5,069 per month, or $60,833 per year [1].
For senior CPA staff, the average cost is $42 per hour, $7,324 monthly, or $87,890 per year [2].
Furthermore, the American online employment marketplace ZipRecruiter found that there are at least five jobs related to accounting that pay more annually compared to the typical accountant job in Dallas, Texas.
These roles include the following:
Chartered Accountant ($53.49 per hour or $111,259 per year)
Principal Accountant ($53.10 per hour or $110,442 per year)
Senior Accounting Officer ($51.20 per hour or $106,500 per year)
Senior Financial Reporting Accountant ($50.25 per hour or $104,511 per year)
Senior Property Accountant ($44.59 per hour or $92,749 per year) [3]
You can see from this that the level of skill that you require in your business would make a massive difference to the costs that you incur.
For a start-up or small business that is not turning over a huge amount of money initially, the cost of a bookkeeper might be sufficient. This would at least allow you to start off the tracking of your finances in a systematic way and set a great foundation for future growth. The claiming of legitimate business expenses is one area where the work of an accountant is invaluable. Reducing tax liability is key to sustainable growth.
As an individual, basic and complex taxation matters handled by a professional can definitely save you time, money, and effort.
If you need a more experienced professional such as a CPA to fulfill the role of a CFO, then you will benefit from fractional CFO services.
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Factors That Influence the Cost of an Accountant in Dallas
Professional Experience and Qualifications
An accountant’s training, education, and professional experience have much to do with the rate they ask for.
The minimum educational requirement for a licensed accountant is a bachelor’s degree, at least 150 semester hours, and a passing grade on the CPA exam. They also have to maintain continuing education to keep their license current.
Size and Complexity of the Business
Larger businesses with multiple transactions and complex financial structures may need more expertise and time from an accountant, which results in higher costs.
Average Fees for Different Tax Filing Situations
The average cost to hire an accountant to do your taxes varies on how complicated your tax filing situation is too.
According to the National Society of Accountants, the average fee for preparing Tax Form 1040 (not itemized) is $220, while for Form 1040 (itemized) $323.
For Form 940 - Federal unemployment, it’s $78, while Schedule B - Interest and ordinary dividends is $42.
Other tax forms and their average fees are as follows: Schedule C - Business ($192), Schedule E - Earned Income Credit ($65), and Schedule SE- Self-employment tax ($41).
Specific Accounting Services Required
Each year, a majority of small business owners spend about 41 hours or more on tax preparation alone. [4] Yet, this is just one of the many accounting services a business needs.
They also have to consider financial analysis, audit services, and bookkeeping. This just means that the specific service you avail will have an overall effect on the cost when hiring an accountant in Dallas.
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Tips to Reduce the Accountant Cost
Maybe you agree that the services of a professional are worth it but you find the fees heavy for your small business, here are tips to reduce the average accountant cost in Dallas.
Organizing Documents
Some accountants charge extra if they have to organize or chronologically arrange the documents of a company from the very beginning. The reason for the additional charge is that it takes hours to prepare these documents in a tax-ready format.
You need to manage files and keep documents organized, such as donations, deductions, expenses, and so on. Keeping your documents organized will help lower the CPA cost.
No Secrets
Your accountant will be your silent partner in the business. If you withhold essential information from them, errors may occur or will affect your tax preparation, more or less.
The Certified Public Accountant (CPA) you hire will determine the ideal way of handling potential financial crises and maintain privilege in case of tax litigation.
Strong Relationship
If you work with the accountant for a year, they are familiar with how you operate or your business workings, in general. They can, moreover determine inconsistencies right away that could otherwise impact your books.
In so doing, they can help avoid fraud, falling revenues, and rapidly rising costs. The account you hire will provide ongoing accounting services and customized advice in a way that will help your business boom.
Thus, once you develop a stronger relationship with the company accountant, there’s a potential for discounted rates in the long run.
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Top 5 Benefits of Hiring an Accountant for Your Small Business in Dallas
1. Save Time (and Money)
An experienced accountant’s assistance helps you with bookkeeping, practical financial advice, maintaining financial records, taking full advantage of tax deductions, preparing tax forms, and handling business taxes, among others.
All these help you save time and money so you can focus more on running your business.
2. Access to Varied Advice + Services
Accountants have specializations, but they can still provide insights and advice into various financial functions. This helps you avail services that are tailored to your business goals and needs.
3. Reduce Tax Liability
When you hire an accountant, they will ensure that you claim relevant tax credits and deductions. For instance, they will determine and report itemized deductions to reduce your taxable income.
Your accountant will also ensure your business is fully compliant with paying taxes, preventing end-of-year challenges and saving you costs in the long run.
Related: Are Vacations Tax Deductible: A Comprehensive Guide
4. Remove Tax Worries
While you can do your taxes independently using tax software, there’s a difference with hiring a tax professional.
In fact, it has many benefits. Your accountant will prepare tax returns in a more sophisticated manner than any software will ever do.
They will remove your financial risks since the chance of committing grave mistakes is almost none. Accountants are also more likely to know your life and business situations better. You can rely on them to get the job done with less attention and input required.
5. Help You Grow Your Business
As your business grows, there will be changes in your budget and financial needs. That’s where your accountant can be beneficial.
Your accountant can ensure your finances and accounts are in place for future business planning and a successful expansion later. Their work will make business growth as easy as possible.
How to Find the Right Accountant for Your Business
Decide What You Need From Your Accountant
To find the right accountant, you need to answer a basic question: What does your company need from an accountant?
Answering this question will help you determine the kind of services you need. You may hire an accountant to help with your daily accounting practices or your taxes. Or it could be for financial tracing.
Once you know the primary reason for hiring an accountant, it’ll be easier to find someone with the skillset that meets your business needs.
Narrow Your List
Do a little homework before talking with an accountant. Ask local business owners, search for online reviews, or get some background on a certain accountant to help narrow your list of potential accounts.
Next, set up an appointment with a prepared set of questions. Ask what’s their experience with small businesses or with your industry. Ensure in this step that the accountant provides the services you need.
Ask How You Will Be Billed
Make sure to understand how you will be billed for services. Some accountants charge flat rates per service, others by the hour, and there are some who use a combination of the two.
Don’t forget to ask about charges that may occur, which haven’t been discussed yet. It may seem like an odd question, yet you may be surprised later by the extra-large bill.
Negotiating Fees With an Accountant
How fees are paid with your accountant can be negotiated. What’s important is it makes sense for both parties.
Ensure you get written quotations from the accountants you’re shortlisting. You may even request a combined method of charging.
Know Their Preferred Accounting Software
Find out what accounting tools the accountant uses.
If they’ve been in the industry for years, there’s a high chance that they’ve used a particular software. It could be an advantage if your company uses the same software or if the accountant is willing to use the same software as you do.
Trust Your Intuition
Lastly, use and trust your intuition in choosing the right accountant or accounting service. It is your business, after all, and you have a pretty good idea of running it.
Alongside logical evaluations, like work experience, references, pricing, and location, also consider if you can trust the person with the intimate details of your business.
If your gut feeling says you’re better off not hiring that accountant, then trust that unconscious processing of thought. It may be that your unconscious mind is picking up all sorts of cues, like body language and verbal stresses, that it does not like.
Although intuition is not always right, it doesn’t mean you should just ignore it, especially if it’s about choosing someone who’ll play a very important role in your business.
Bottom Line: Should You Hire an Accountant?
Hiring an accountant may seem unnecessary at first, but more so with plenty of accounting software available. However, the underlying benefits are more significant than that.
You get financial advice that will help you achieve your business goal faster than without an accountant in your business journey. The services they provide relieve your tax problems, protect your finances, and help improve your business.
Overall, hiring an accountant will be worth the cost.
If you’re looking for a reliable and qualified accountant, Hall Accounting Company is the team for you.
Get in touch with us today to learn how we can support you.
References:
[1] www.salary.com
[2] www.salary.com