The rates of hiring an accountant vary upon the scope of services required and the urgency of the task. Usually, the accountant will bill their client on an hourly basis, per service basis or regular/monthly basis.
Hourly rates range widely depending on the location of the office, the services required and the experience of the accountant. A more experienced accountant will charge much higher than a staff accountant.
Commonly, the rates vary from $20 to over $350 an hour.
However, lower hourly rates doesn’t mean that it is of better value. This is because although a more experienced accountant may charge higher hourly rates, they are also able to complete the task in a shorter amount of time as compared to a junior accountant.
For instance, a junior, less experienced account may only charge $20/hour but takes a considerably longer time than a more experienced accountant who charges $50/hour. In this case, you may actually pay lesser if you engage the accounting services from an experienced accountant whose hourly rate is higher.
Typically, clients may require a temporary accountant on an hourly basis due to the absence of a current accountant or to close the accounts before it is due.
This is the most common practice that the clients are charged – based on the service required. The accountant will review the task and offer an estimated cost to the client. Once both the accountant and client agree with the proposal, the accountant will then proceed with the task.
Usually, the accountant will look into the complexity of the task and also the amount of time involved before determining the total cost. The proposal will clearly state the service provided and also the period of the task.
This give the client an upfront expectation of the service and the cost, so as to prevent any misunderstanding.
For ongoing, monthly tasks, like bookkeeping services, payroll or data entry of transactions, many accountants offer clients a regular fee structure based on the volume of the work. Instead of paying for the service in a lump sum, the clients can pay on a monthly basis.
Firstly the accountant will review on the volume of the work and the amount of time needed to complete before offering a proposal.
Because rates vary so much, it’s important that you define your needs and expectations from the start so an accountant can accurately estimate the cost of his or her services before he or she begins.
Having a proper filing system, keeping records organised and detailed may reduce the cost. This allow the accountant to effectively proceed with the task without having the need to sort up messy files.
Ace Success Pte Ltd provide period-based accounting services that suit your needs. We offer per day basis, regular/monthly basis or proposal basis. Let our experience Certified Accountant be part of your success today.