When you hire an accountant, the price matters less than the scope. Two quotes can look similar and cover very different work. This guide explains the services small business accountants commonly offer, what a monthly package may include, what is often billed separately, and how to compare offers.
For help deciding who to hire in the first place, start with our complete guide to accountants for small businesses. This article is general information, not tax advice.
Core Accountant Services for Small Businesses
| Service | What it covers | Related guide |
|---|---|---|
| Bookkeeping | Recording and categorizing transactions so your records stay current | Small business bookkeeping |
| Bank reconciliation | Matching your books to bank and card statements to catch errors | Bank reconciliation |
| Invoicing and bills | Tracking what customers owe you and what you owe suppliers | Accounts receivable and accounts payable |
| Payroll | Paying employees and handling payroll tax deposits and filings | Small business payroll |
| Financial statements | Preparing or reviewing the profit and loss statement, balance sheet, and cash flow statement | Profit and loss statement |
| Tax preparation and planning | Preparing returns and planning for estimated payments and deadlines | Tax accountant guide |
| Budgeting and advice | Building a budget and explaining what the numbers mean for decisions | Small business budgeting |
| Software setup | Choosing and configuring accounting software | Accounting software |
No single accountant offers all of these in every arrangement. Some firms focus on tax work, others on monthly bookkeeping and reporting.
What a Monthly Package May Include
Monthly packages vary by professional and by the agreement. A package may include:
- Recording and categorizing transactions
- Monthly bank and credit card reconciliation
- A month-end close
- Monthly financial statements
- Payroll processing or review, if agreed
- Periodic check-ins to review results
Confirm every item in writing. Do not assume that a monthly fee also covers your tax return, since many accountants price that separately.
What May Cost Extra
Work outside the agreed scope is often billed separately. Ask whether any of these are included or priced as add-ons:
- Cleaning up or catching up old books
- Tax return preparation
- Amended returns
- Responding to IRS or state notices
- Representation in an audit (see our IRS audit guide)
- Work for additional states or additional entities
How to Compare Accounting Packages
- List the services you actually need, then check each quote against that list.
- Compare what is included, not only the price. A lower fee may cover less work.
- Ask about reporting. How often will you receive financial statements, and in what format?
- Check the software. Make sure the accountant works with the tools you use or plan to use.
- Ask how extra work is billed, including hourly rates for work outside the package.
- Read the engagement letter. It should name the services, fees, responsibilities, and deadlines.
Be cautious about vague scopes, no written agreement, or promises of specific tax savings. No accountant can guarantee savings.
What You Can Handle Yourself With Software
Many owners handle routine tasks themselves and pay a professional for review and tax work. Accounting software can help with invoicing, expense tracking, and basic reports. You can then spend professional time on questions that need judgment, such as tax planning or changes to your business structure.
Frequently Asked Questions
Does a monthly accounting fee include tax preparation?
Not always. Some packages include it, while others charge separately. Ask for it to be stated in the agreement.
What is an engagement letter?
It is a written agreement that describes the services, fees, responsibilities, and timelines. Review it before you sign.
Can an accountant manage my payroll?
Many can, but not all offer it. Ask whether payroll processing and payroll tax filings are part of the service.
Conclusion
Comparing accountant services comes down to scope. List what you need, confirm what each package includes, ask what costs extra, and get everything in writing. For a closer look at tax-focused professionals, read our guide to small business tax accountants.
This article is general information, not tax or legal advice. Confirm your own situation with a qualified professional.
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