How Much Does a CPA or an Accountant Charge per Hour?

A Certified Public Accountant also known as CPA, meets specific state and education licensing requirements and passes the CPA exam. Accountants are generally graduates with specialization in Accounting. So there are some differences between CPAs and Accountants.

All CPAs Are Accountants, But All Accountants Are Not CPAs

5 Significant Differences Between CPAs and Accountants

1. Certification
   CPAs need to have a Bachelor's degree and then pass the CPA certification exam while an Accountant has a bachelor's degree, ideally in accounting.

2. Expertise
   CPAs give advice and insight about the bigger picture finances of a business, and can commonly offer a deeper insight into tax codes while an Accountant only gives advice and insight about the bigger picture finances of a business.

3. Audit Reports
   CPAs can create and review audit reports while an Accountant can create compilation reports, but cannot create or review audit reports.

4. IRS Representation
   CPAs can represent their clients legally before the IRS while an Accountant cannot represent a client legally before the IRS.

5. Salary
   Average CPA Salary in the U.S is $67,081 per year while an Accountant on average earns up to $56,520 per year.

Hourly Charges of CPAs and Accountants

• CPA Hourly Rate: $28.65

• Accountant (non-CPA) hourly rate: $20.01

• Staff Accountant hourly rate: $20.23

• Senior Accountant hourly rate: $27.54

• Tax Accountant hourly rate: $22.90

• Tax Manager hourly rate: $34.60

Moreover, the cost of CPA can range from $200 to $250 per hour, however in major cities and for top talent, hourly accounting fees for CPAs can go as high as $500. Licensed CPAs make significantly more than Accountants. The price difference between the two ranges from $20 to $100 per hour.

The cost of hiring a professional CPA or accountant to do your taxes varies. Charges are based on what services you require from them.  It is important to keep in mind that mentioned above are the average fees; the cost will be different depending upon different factors such as;

• Experience Level

• Industry (Tax, Audit Professionals, etc.)

• Level of Complexity Involved in Your Unique Situation

• Company Scale

• Geographical Location

CPAs earn approximately 10 to 15 percent more money than non-CPAs and have better job security. Clients prefer to get services from certified public accountants because they value the additional education and understanding that the CPA title is given to professionals only. This education and experience can command a higher price than a standard accountant without a CPA license.

Bookkeepers, Accountants, and Certified Public Accountants (CPAs) all work with businesses' accounting records. Bookkeepers record a company's cash flows. Accountants provide a more detailed analysis than bookkeepers. A CPA or Certified Public Accountant met the CPA Certification requirements to get a CPA State License.

Bookkeeping is more transaction-specific and managerial, relevant to recording financial transactions. Accounting is more subjective, it gives you a business in-depth knowledge based on bookkeeping information.

A Bookkeeper is like a mechanical room of an accounting team, maintaining a variety of books of accounts used to produce key financial reports. A Bookkeeper job description generally includes:

• Recording Financial Transactions

• Posting Debits and Credits

• Producing Invoices

• Maintaining and Balancing Subsidiaries, General Ledgers, and Past Accounts

• Manage Payroll

• Reports Reconciliation to Third-Party Records such as Bank Statements

(A bookkeeper’s average hourly rate is $15/hour.)

Conclusive Thoughts

CPA’s, Accountants, and Bookkeepers, all have their strengths and weaknesses, pros and cons, advantages, and disadvantages.

Accountants, Bookkeepers, and Certified Public Accountants (CPAs) all work with businesses' financial data. Bookkeepers record a company’s cash flows and ledger. Accountants provide more in-depth analysis than Bookkeepers. A Certified Public Accountant is a State Licensed Accountant called CPA. CPAs can give you advice about tax matters and present your books in case of an IRS Audit.

Knowing the differences between all three can help you decide which type is right for your business. So you can search for the perfect Business Accountant near me, or the best book keeper nearby, or the best CPA available near me.