How to find an accountant for small business

Accurate financial reporting is essential for any small business, but managing accounting tasks on your own can become overwhelming as your business grows. In that case, you may consider hiring a small business accountant.

If you’re not ready to bring on a full-time accountant, you can outsource accounting tasks based on your business’s needs. Accounting firms offer reliable financial support through a combination of expert advice and modern tools, and often at a lower cost than hiring in-house.

In this guide, we cover what an accountant does, how to find an accountant for your small business, and the typical cost of hiring one.

What does a small business accountant do?

Small business accountants do far more than tax filing. A qualified accountant can provide year-round financial guidance and support that helps your business run more efficiently and stay compliant. Here are some common services a small business accountant can provide:

• Month-end close reporting delivers regular reviews of your financial operations, alongside quarterly and annual summaries
• Documenting and updating accounts receivable and accounts payable helps manage cash flow and identify potential issues with collections or payments
• Preparing tax returns ensures accurate filings and reduces the risk of audits by state or federal agencies
• Handling other tax compliance tasks, such as sales tax, franchise tax, and local business taxes
• Managing cost accounting and inventory control provides an accurate analysis of costs incurred to provide services and produce goods or services
• Establishing key performance indicator (KPI) metrics helps your business effectively track and measure performance
• Running payroll operations ensures compliance, especially if you employ people in multiple states where registration and tax filing requirements vary
• Implementing and maintaining financial software improves accuracy and streamlines your accounting, reporting, and tax processes

Do I need a small business accountant?

If you’re running a growing business, the answer is likely yes. A small business Certified Public Accountant (CPA) helps ensure your financial data is accurate, complete, and actionable so you can make better decisions and set your business up for long-term success.

Beyond tax preparation, accountants offer strategic advice on things like budgeting and cash flow management, so you can plan for growth rather than reacting to financial issues.

In-house vs. outsourced accounting

An in-house accountant offers dedicated support and a deep understanding of your business’s daily operations. For businesses with complex or fast-moving finances, having someone on staff may provide peace of mind.

Alternatively, an accounting firm can give you access to a team of qualified professionals for greater coverage and responsiveness when you need it most, like during month-end close. Many firms also offer cutting-edge technology and automated tools to streamline your financial operations.

How to find and hire an accountant for small business

Finding the right accountant for your small business can make a big difference, but where do you start? Here are five steps to find a small business accountant who fits your needs:

1. Define your accounting needs

The first step is to analyze your operations and outline exactly what you need help with. This includes evaluating any current software you're using and understanding the accounting tasks performed by your current staff. Are you looking for help with tax preparation, financial strategy, day-to-day bookkeeping, or all of the above? Knowing what you need will help narrow your search to accountants with the right skill set.

2. Ask for referrals and read reviews

Tap into your network, whether it be fellow business owners, bankers, attorneys, or industry groups. Referrals from people you trust can help you find an accountant or firm that understands your industry. If personal referrals don’t pan out, browse online reviews from Yelp or accounting directories to assess options.

3. Verify credentials and professional memberships

Make sure the accountants you’re considering hold valid credentials, like a CPA license, Certified Management Accountant (CMA) certification, or IRS preparer tax identification number (PTIN). Even better, see if they belong to organizations like the American Institute of Certified Public Accountants (AICPA) or the National Association of Enrolled Agents (NAEA).

4. Schedule a consultation and ask the right questions

A good accountant will clearly explain their services and software tools, as well as their approach to your business needs. During your consultation meeting, ask about their:

• Experience with businesses in your industry
• Cost estimate and billing structure (hourly, flat rate, or bundled packages)
• Tax filing process (in-house or outsourced)
• Preferred accounting software and portal access
• Communication expectations and turnaround times

Also, consider bringing a copy of a past tax return to help them offer a rough estimate on pricing.

5. Make sure it’s a good fit

Technical expertise is key, but so is trust and rapport. You’ll share sensitive financial information and lean on their advice to make major business decisions, so take the time to choose an accountant you can build a long-term relationship with.

How much does a small business accountant cost?

Hiring a dedicated professional can be expensive. U.S. accountants have a median pay of roughly $39 per hour or $81,680 annually as of 2024, according to the Bureau of Labor Statistics (BLS).

Credentialed accountants with a CPA or CMA designation can charge hundreds of dollars, and some well-renowned firms may charge even more. Per BLS data, the bottom 10% of earners in the accounting field make less than $52,780, while the top 10% make more than $141,000 annually.

While small business accountants may earn less, it's crucial to consider salary plus the training and benefits full-time employees require. Additionally, your business might not need the services of a full-time accountant.

Outsourcing to an accounting firm can offer more flexibility and cost savings thanks to customizable pricing. If you only need specific accounting functions, an accounting firm can provide those services at a personalized per-hour cost or monthly retainer.

For example, say you currently use QuickBooks and are considering transitioning to NetSuite. You can hire an accounting firm to help you complete the transition at a one-time cost rather than bringing on permanent staff.

Leverage Ramp’s accounting automation software

Technology plays a critical role in any accounting operation. With automation software in particular, you can streamline your accounting tasks for faster, more accurate operations with less manual effort.

Ramp's accounting automation platform does just that. Our AI-powered accounting software provides real-time suggestions for categorizing expenses, automatically collects receipts, and flags potential issues before they become problems while keeping your business compliant.

Accounting software can’t always replace the strategic insight of a trusted accountant, but it can give you more time to focus on running and growing your business. Ready to explore the benefits? Try an interactive demo today to see how Ramp can save your business time and money.

FAQs

Can I be my own accountant for my business?

Yes, small business owners can manage their own accounting using tools like QuickBooks or Xero. However, it requires careful recordkeeping, knowledge of tax laws, and a significant time investment. As your business grows, you’ll likely want professional support to avoid errors and free up time.

Is hiring an accountant worth it?

Hiring an accountant is often worth the investment. A small business accountant helps your business comply with tax laws and provides accurate financial reports to guide business decisions. They also save you hours of administrative work, so you can focus on running and growing your business.

How much should a small business spend on an accountant?

The median pay for U.S. accountants is about $39 per hour according to 2024 BLS data, but costs vary based on the accounting services you want, your business’s size, location, and whether you hire in-house or outsource. As a general guideline, a small business may allocate around 1%–3% of its total revenue toward accounting expenses.

What is the difference between a bookkeeper and an accountant?

There are a few key differences between bookkeeping vs. accounting. In general, a bookkeeper handles the day-to-day recording of financial transactions, like tracking invoices and payroll. An accountant takes a broader view and analyzes those records to prepare financial statements, file taxes, and offer strategic advice.