If you outsource your business taxes to an annual tax preparer, you’re paying too much for too little. It’s not as bold a claim as you might think!
In this article, I’ll talk about “paying too much” from both a cost perspective and a value perspective… and how some businesses can get a better cost and value.
At CSI Accounting & Payroll, we’ve provided monthly accounting services for nearly 60 years. We’ve answered thousands of questions about cost and value, including:
- Why does only outsourcing taxes cost too much?
- Why does only outsourcing taxes not provide enough value?
- How can monthly accounting cost less and provide more value?
Costs Too Much
As mentioned in a prior article, a business tax filing service typically costs between $2,000-$3,000 or more each year for tax filing for small businesses.
Don’t forget about bookkeeping! If you can keep your books accurate and current, then you only need to pay software subscription fees. But if you outsource this, it’s an extra $500-$1,200 or more per month for basic bookkeeping.
That’s pretty spendy for just compliance! Next, I’ll talk about the limited value.
Not Enough Value
Annual tax preparers offer a quick, one-off service: recording the history of the past year. That’s pretty much all there is to it.
Some annual tax preparers may make attempts at offering tax advice or projecting what you might owe next year, but it falls short since they only work with you annually. You’ll have trouble reaching them throughout the year, and if you do, you’ll get charged by the minute.
That’s not a lot of value for the price. Luckily, it’s time to compare annual tax preparers to monthly accountants in the next section.
Monthly Accounting Costs Less & Gives More Value
Now, let’s compare that cost and value to monthly accounting services with CSI Accounting & Payroll.
Earlier, I mentioned that business tax filing services alone cost between $2,000-$3,000+ each year, and if you add bookkeeping services for an extra $500-$1,200+ per month, that’s $8,000-$17,400 per year for basic compliance unless you can handle your own bookkeeping.
Monthly accounting services provide so much more. They actually deliver on the promises that annual tax preparers make. Plus, these are also included in your monthly fee:
- Monthly bookkeeping & account reconciliation
- Monthly financial statements
- Proactive monthly advice, plus extra communication as needed
- Audit representation
- Tax strategy, preparation, & business tax filing
Oh, and about that monthly fee? CSI’s average accounting fee is about $800 per month. Depending on your activity and complexities, your fee can range from $600-$1,500+ per month. For everything above, you could pay as little as $7,200-$18,000 per year.
If you’re on the higher end of the range for tax filing and bookkeeping services, then switching to monthly accounting services is objectively the better choice.
Pay Less & Get More? Start Here.
Now that you know why outsourcing taxes costs too much and doesn’t provide enough value, plus how monthly accounting can be a much better deal, are you ready to check out monthly accounting services?
If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation:
Not ready to talk? That’s okay! First, find out what your monthly fee may be with CSI by clicking the image below:
