The payment of taxes is quite tedious. Must consider many aspects to avoid paying more than what is due. To help you in this task, you can count on experts in the area, such as a tax accountant.
Although you may think that it is easy to hire a professional, in reality, you should consider several factors to choose the best one. In addition, it is important to know the established rates to adapt them to your needs.
Do not be scared by the price. The tax accountant usually has high rates, but you will be able to pay it because it will be worth it. Remember, the goal is to take care of every detail, and he will do it.
Know the prices of the tax accountant
The million-dollar question: How much does it cost to pay a tax accountant? The main thing to tell you is that the price varies depending on the work done and the amount of time it takes. This professional typically has a higher rate than what is set in the indicative salary scale.
The amount ranges from $150 to $250 per hour. Although, there are cities where an accounting firm can charge $500 per hour of work. Even depending on the State, the rate will be higher, ranging up to six figures.
What determines the rates?
It is essential to mention some determining factors for the professional to establish his rate – for example, the complexity of the task.
Tax accountants analyze whether or not you have a simple business with a sole owner, as the return will be simpler. For large corporations, the price will be much higher due to the complexity of the task.
The prestige or recognition of the firm is also a determining factor. Like any other expert, experience is considered when setting fees. Of course, the region is not left out. Places like Los Angeles and New York have higher prices.
Additional charges have a different price.
Occasionally, it happens that there are forgotten additional charges. For these tasks, there is also a fixed price. Incomplete or disorganized files are worth $166. Current year tax preparation is worth $377.
As for IRS audits, they are worth $902. Extensions are $56, and expediting returns are $136. Consider this carefully as you may have to pay for some extra paperwork.
Did you know that expatriates also pay tax?
Generally, expatriates who pay taxes go through overly complicated processes. For this, the tax accountant is ready. The expert makes the process more affordable and uncomplicated.
The prices for hiring the help of a professional depend on the person, the task, or the company where they belong. However, an estimate for basic taxes is $250. Apart from that, different forms range from $25 to $500.
For foreign account reports, there can be a price of $90 and approximately $10 for each additional account.
Difference between an accountant and a tax preparer
There is often a lot of confusion surrounding these two professionals. A tax accountant is certified to provide financial services and prepare taxes. A tax preparer only prepares basic taxes. Although they are a great help, hiring a tax accountant is better.
Benefits of hiring a tax accountant
The tax accountant will be responsible for paying interest or penalties for any accounting errors. He will answer any questions about the tax and give you the required information.
The accountants have access to specially created software to prepare the taxes without making any mistakes and retaining all the information. In addition, they know the tax code perfectly, which helps reducing taxes.
He will be able to identify any financial problem and will give you the advice to solve the inconvenience. An undoubtedly very beneficial aspect too.
For years I have studied American finance regulations. All the information in this blog is sourced from official or contrasted sources from reliable sites.
Salesforce Certified SALES & SERVICE Cloud Consultant in February 2020, Salesforce Certified Administrator (ADM-201), and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.