According to SCORE, nearly 40% of small business owners say bookkeeping and taxes are the worst part of running a business. It’s not hard to see why: When your financial systems aren’t working, everything from cash flow management to tax time becomes more challenging than it needs to be.
In this article, we'll explain what accounting costs typically include, what small businesses are paying, and why those numbers vary so much. We’ll also look at how to reduce unnecessary costs without cutting corners, and when investing a little more in the right support can pay off in the long run.
What makes up accounting costs?
When small business owners think about accounting, they often imagine tax season, but that’s just one part of it. Depending on how your business is set up, accounting can include regular bookkeeping, payroll, BAS or VAT lodgements, preparation of financial statements, and even advisory support for cash flow and budgeting.
Some firms will offer all of this as part of a bundled package, which can work well if you like the idea of a fixed monthly fee. Some, however, charge separately for each service: bookkeeping and accounting services here, payroll there, tax preparation when it’s needed. There’s no single right approach when it comes to this.
In most small businesses, bookkeeping forms the foundation. This is where expenses are recorded, payments are reconciled, and invoices are managed. If you have employees, payroll adds another layer of responsibility. And by the time tax season comes, how well your books have been kept throughout the year will determine how easy or stressful that process is.
Some businesses only need help once a year. Others, especially those with fluctuating income or complex systems, may need ongoing support to avoid missed deadlines or errors.
Obviously, the more services you need, the more you’ll be charged. But this isn’t just about volume because tasks that are more involved or require a highly experienced accountant cost more. That’s why it’s important to know exactly what you’re paying for and whether those accounting services are helping your goals or simply adding to the bill.
Hourly rates, flat fees, and how pricing models work
The way accountants bill can have a big impact on the overall cost. Some work on an hourly rate, others with fixed monthly packages, and a few still charge per service.
Hourly billing can do fine for sole traders and freelancers with fairly simple finances. If your business falls into this category, you may need to touch base once or twice a year to get your return sorted. This can cost somewhere between $150 and $300 for a session or two.
For growing businesses with employees, payroll, regular invoicing, and compliance needs, monthly accounting services usually make more sense. For a flat fee, they get ongoing support, consistent service, and an overall peace of mind. A fixed package might cover bookkeeping, payroll, BAS lodgements, and year-end reports all in one.
The last option is per-service billing, where you pay individually for tax returns, super, financial reports, and so on. This is one of the more flexible options, but it costs increasingly more as your needs grow.
Not sure which pricing model suits your business? Hall offers flexible plans from hourly sessions to full-service packages, each adapted to the size and complexity of your business. Go here to get a personalized quote.
What influences how much you’ll pay
No two businesses look exactly the same, and that's why there’s no standard price when it comes to small business accounting. What you pay depends on how complex your setup is, how busy your books are, and what kind of help you need.
If you’re a sole trader with one stream of income and no staff, things stay simple. There’s not much to reconcile, and your accountant’s job is fairly straightforward. Adding employees, taking out loans, or managing multiple revenue channels all require more time, more oversight, and a deeper level of expertise.
Transaction volume has a big impact, too. More invoices, more payroll runs, more expenses—it all takes time to process, check, and file correctly.
Some industries are inherently more complex. Medical, construction, and legal businesses have industry-specific reporting or compliance needs, so accountants who specialize in these areas may charge more, but that experience pays off in the end.
Another thing to consider is that city-based firms usually charge more than regional ones, partly because of overheads, partly because demand dictates the price to go up.
Lastly, take into account how you’re getting the help. Hiring an accountant in-house means paying a salary, plus benefits and tools. Outsourcing offers more flexibility and can be far more cost-effective if you only need help now and then.
Knowing where your own business sits in all of this helps take the guesswork out of what “fair” accounting costs look like. Simply put, they're different for everyone.
Whether your business is growing, hiring, or just changing direction, your accounting needs to adapt. Hall Accounting Company works with you by giving you clarity through each stage of your business journey. Schedule a free consult here.
Real world numbers: What small businesses end up paying
One of the first questions people ask is, “How much should I be spending on accounting?” The short answer: It depends, but there are some reliable benchmarks that can help you get a sense of where your average accounting fees stand.
According to data from SCORE and industry reports, here’s how it typically breaks down:
Under $1,000/year: This covers some basic support like annual tax filing for sole traders or very small operations with minimal complexity.
$1,000–$5,000/year: This is the most common range for small businesses. It's usually a mix of services like bookkeeping, payroll, tax returns, and ongoing advice, especially for businesses with employees or regular reporting requirements.
$5,000–$10,000/year and beyond: Businesses with more moving parts (multiple staff, higher revenue, inventory, or industry-specific compliance) tend to land here. You’re paying for deeper involvement and more frequent support.
$10,000+: At this level, you’re likely getting full-service support, possibly including a part-time CFO or controller, customized reporting, and proactive tax planning.
There’s no exact number, but if you’re paying way outside these ranges (on either end), it’s worth asking why.
Ways to reduce accounting costs
Even though accounting can get expensive, there are always ways to make it more affordable. This doesn’t mean cutting corners that’ll backfire later, but making a few quality-of-life upgrades, so your accountant spends less time working for you. Here’s what you can try:
Use basic accounting software
Platforms like Xero, QuickBooks, or MYOB can handle most of the day-to-day stuff: invoicing, expense tracking, and bank reconciliations. If your financial records are already organized, your accountant won’t have to untangle a mess later, which saves you hours on the clock.
Outsource instead of hiring
If you don’t need someone full-time, you may get better value by outsourcing. You can bring in help for tax time, payroll, or specific projects, then pause when things slow down.
Only pay for what you use
If your accountant offers bundled services, double-check what’s included. You might be paying for reports or tasks you don’t need.
Don’t chase the cheapest deal
Low-cost services might save money short term, but errors, delays, and bad advice can cost you way more in the long run. Always make sure you're getting quality service for your money.
When paying more actually saves you money
It’s easy to look at accounting as just another business expense, but in a lot of cases, spending more upfront ends up saving you far more in the long run.
An experienced accountant can help you find tax deductions you may have missed, catch oversights before they lead to penalties, and organize your finances in a way that makes long-term planning easier. When the tax season comes, that can mean thousands saved. Not just in taxes, but in time, stress, and fines.
For growing businesses that deal with staff or some complicated compliance, the value of good advice becomes even more obvious. An accountant can help you avoid overpaying GST, stay ahead of lodgement deadlines, and keep your cash reserves healthy through seasonal dips.
In that sense, even though a higher hourly rate or monthly fee might feel steep at first, the long-term return often justifies it. When accounting is done well, it becomes an asset that gives you the ability to plan.
Conclusion
Whether you manage most of your accounting yourself or rely on outside help, the goal stays the same: keep your finances accurate and your obligations in check.
If the way you operate now feels clunky, expensive, or unclear, this might be a good time to see what you can change. Maybe you’re overpaying. Maybe you’re under-supported. Whatever the case, always aim for the right balance between cost, service, and peace of mind.
Need help finding that balance? Hall Accounting Company offers support built around how your business works. Get in touch today to see how we can simplify your numbers, so you can get back to growing your business.