Small businesses often juggle many responsibilities, from managing employees to marketing products and services. One of the most critical areas that often require professional expertise is accounting. Choosing the best accounting firm can save time, reduce stress, and ensure financial success. In this guide, we’ll explore the best accounting firms in the US for small businesses, breaking down what makes them stand out and how they can help you.
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Why Small Businesses Need Accounting Firms
Managing finances is crucial for any business, but for small businesses, it can be especially tricky. Here’s why working with an accounting firm can make a big difference.
1. Expert Knowledge
Accounting firms have experts who understand tax laws, financial rules, and bookkeeping. These experts help ensure that your finances are in order and compliant with laws, which can prevent costly mistakes and fines. Without this knowledge, small businesses might face penalties or miss out on ways to save money.
2. Saves Time
As a small business owner, you’re already juggling many tasks. Handling accounting on top of everything else can be overwhelming. By hiring an accounting firm, you can focus on growing your business and working with customers, leaving the number crunching to the experts.
3. Better Cash Flow Management
Cash flow is essential to keeping your business running. Accounting firms can help you manage your money better, avoid problems, and plan ahead. They can also help with budgeting and forecasting, so you know exactly where your money is going and how to make the most of it.
4. Fresh Perspective
When you’re running your business, it’s easy to get too involved in the day-to-day. Accounting firms bring an outside view that can help you make better decisions. They give unbiased advice, whether it’s about saving for the future or getting through a tough financial time.
5. Long-Term Success
An accounting firm isn’t just for tax season. They can help you plan for the future, stay on track with your financial goals, and provide guidance in areas you may not even think about. They’re a valuable partner in ensuring your business grows and stays successful.
Factors to Consider When Choosing an Accounting Firm, Especially for a Small Business
Choosing the right accounting firm is crucial for any small business, as it can have a significant impact on your financial health and overall success. Here are some key factors to consider when making that decision:
1. Experience with Small Businesses
Choose a firm that understands the unique challenges of small businesses, such as cash flow management and tax planning. They should have experience working in your industry to provide tailored advice and support.
2. Services Offered
Ensure the firm provides a range of services you need, like bookkeeping, tax filing, payroll, and financial planning. Look for flexibility to scale services as your business grows.
3. Communication and Accessibility
Clear and open communication is essential. The firm should be easy to reach, responsive to your queries, and capable of explaining financial concepts in a simple, understandable way.
4. Fees and Payment Structure
Understand the firm’s fee structure upfront, whether it’s flat-rate or hourly. Make sure the costs align with your budget, and clarify which services are included to avoid unexpected expenses.
5. Reputation and Trustworthiness
A good reputation is critical. Check reviews, ask for references, and ensure the firm is trustworthy and reliable in handling sensitive financial information. Trust and compatibility with the firm are vital for a smooth working relationship.
Top Accounting Firms for Small Businesses in the US
While selecting accounting firms in the U.S. for a small business, you have to search for a firm that possesses the perfect blend of expertise, personalized attention, and affordable fees. Below are some of the top accounting firms that are highly reputed for providing services to small businesses:
1. Bench Accounting
Bench is a modern bookkeeping service committed to small businesses. They pair an easy-to-use online platform with real accountants to help keep your company books.
Services:
- Monthly bookkeeping
- Real-time financial dashboard
- Tax filing assistance
- Customized financial reports
Best For: Small business owners who need bookkeeping without accounting software complication.
2. Intuit QuickBooks Live
As part of QuickBooks, one of the most popular accounting software applications for small businesses, QuickBooks Live takes things up a notch with live accounting professionals.
Services:
- Bookkeeping help from real accountants
- Tax preparation and filing
- QuickBooks software integration
- Dedicated account team for personalized support
Best For: Businesses that already use QuickBooks or need an easy way to manage finances through an intuitive interface.
3. Baker Tilly
A national accounting firm that provides specialized small business services in verticals like healthcare, manufacturing, and nonprofit organizations. They focus on offering advice to help small businesses grow sustainably.
Services:
- Tax planning and compliance
- Audit and assurance
- Business advisory
- Mergers and acquisitions consulting
Best For: Companies growing and needing more advanced financial advice than basic bookkeeping.
4. KPMG Spark
KPMG Spark is a cloud-based accounting solution for small businesses. It offers a complete accounting services suite and leverage KPMG’s global expertise to offer experienced advice.
Services:
- Real-time financial reporting and bookkeeping
- Tax filing and advisory
- Payroll processing
- Cloud accounting software integration
Best For: Small businesses or start-ups looking for professional accounting services with a cloud solution.
5. Merritt Bookkeeping
Merritt Bookkeeping provides no-frills bookkeeping with a no-nonsense approach. Their pricing is simple: They charge a flat fee with no hidden surprises.
Services:
- Monthly bookkeeping
- Financial statement preparation
- Expense tracking
- Tax preparation (other services at an extra cost)
Best For: Small businesses with uncomplicated bookkeeping needs who want ease and transparency in pricing.
6. H&R Block
H&R Block is a widely recognized tax service but has also made an effort to target the small business arena. Their accountants are knowledgeable in both personal and business finances and offer a broad range of services.
Services:
- Business tax planning and filing
- Bookkeeping
- Advisory and consulting services
- Payroll processing
Best For: Small businesses needing a mix of business and individual tax services or low-cost professional service.
7. Sikich LLP
Sikich LLP is an accounting, advisory, and technology firm providing services across a range of industries for small businesses. They focus on combining financial management with strategic advice to help small businesses grow.
Services:
- Accounting and bookkeeping
- Tax services
- Business consulting and advisory
- Technology solutions and integrations
Best For: Small businesses that need both accounting services and strategic business growth advice.
8. BDO USA
BDO is a global accounting powerhouse and provides top-notch services to small businesses in the US. They offer a complete range of services that combine traditional accounting with high-advisory and consulting levels.
Services:
- Audit and assurance
- Tax services (business and personal)
- Business consulting
- Transaction services
Best For: Small businesses that need more sophisticated advisory services or those that anticipate growing or changing significantly in the future.
9. RSM US LLP
RSM is a global firm that serves small and mid-market businesses. They provide a broad range of services that are designed to help businesses with the complexities of financial management.
Services:
- Accounting and bookkeeping
- Tax planning and compliance
- Business consulting and strategy
- Audit and assurance
Best For: Small businesses requiring detailed, industry-specific accounting and business consulting services.
10. CohnReznick
CohnReznick is a leading accounting firm that has a specialty of helping small businesses with tax and financial matters. They have profound experience in real estate, healthcare, and beyond.
Services:
- Tax preparation and planning
- Audit and assurance
- Business advisory and strategy
- Financial reporting and forecasting
Best For: Small businesses that need advanced tax planning, audits, and growth-oriented advice.
Each of these companies offers a different array of services with the objective of catering to the diverse needs of small businesses, from simple bookkeeping to advanced financial advisory and tax services. You can choose the one that fits your budget and growth plans, based on your company’s size and your specific needs.
What Services Do These Firms Offer?
What Do These Firms Offer? Below is a list of common services small businesses can expect:
Bookkeeping
What it is: Bookkeeping refers to the recording and tracking of all of a company’s financial transactions on a daily basis. This includes sales, expenses, purchases, and payments.
Why it’s important: Accurate and up-to-date records are crucial for making good decisions, understanding cash flow, and tax preparation. Bookkeepers categorize transactions, reconcile bank statements, and prepare everything for tax filing.
Payroll Management
What it is: Payroll management is the calculation of wages of employees, processing payments, and managing deductions such as taxes, benefits, and retirement contributions.
Why it’s important: Proper payroll processing is central to having happy employees and staying in compliance with labor laws. It ensures that employees are paid on time and that the appropriate tax deductions are withheld. Most payroll software also generates the reports that need to be filed as part of taxes.
Tax Preparation
What it does: Tax preparation is the filing and preparing of tax returns, ensuring that all credits and deductions are calculated and that the company is in compliance with federal, state, and local tax regulations.
Why it’s important: Accurate and timely tax filings are necessary to prevent penalties, audits, and unnecessary costs. Strategic tax planning is also offered by many accounting firms to assist businesses in reducing their tax burdens during the year.
Financial Planning
What it is: Financial planning is the process of developing strategies for effectively managing the finances of the business. This encompasses budgeting, forecasting, and planning for long-term growth or financial difficulties that may arise.
Why it’s needed: With the help of proper financial planning, small businesses can ensure that they are prepared for future growth, maintain their expenses under control, and maximize profits. Financial planning also helps in the management of cash flow, planning investments, and managing risks.
Audit Services
What it is: Auditing services are conducted to make sure that a company’s financial statements are accurate and in accordance with accounting principles and regulations. This can be done internally or by an external company.
Why it’s necessary: Audits uncover discrepancies, fraud, or potential compliance issues before they become major problems. Regular audits encourage transparency, stakeholder trust, and can help businesses qualify for loans or investments.
Consulting
What it is: Consulting services provide professional advice and support on a variety of financial matters. This can vary from business strategy, cost-cutting, risk management, mergers, acquisitions, and even navigating complex financial challenges.
Why it matters: Having access to veteran financial consultants can turn out to be invaluable when making tough decisions or when a company is facing significant changes, for example, expansion or restructuring. Consultants are able to guide small business owners through complex financial situations, enabling them to make solid, strategic decisions.
How Much Do Accounting Firms Charge?
The cost of accounting services for small businesses can vary significantly depending on factors like the complexity of the services, the location of the firm, and the size of your business. On average, here’s a general breakdown:
- Hourly Rates:
- For small businesses, accounting firms usually charge between $100 to $300 per hour.
- More experienced or specialized accountants may charge higher rates.
- Monthly Packages:
- Small businesses often opt for monthly accounting services, which can range from $200 to $2,000 per month. The variation depends on the level of service (e.g., bookkeeping, tax planning, payroll, financial analysis).
- For basic bookkeeping, it might be closer to the lower end, but for more comprehensive services (including tax preparation and advice), it could be higher.
- Flat Fees:
- Some firms offer fixed-price packages based on specific services. For example:
- Tax preparation: $200 to $1,000+ per year, depending on the complexity.
- Payroll services: Can range from $100 to $500+ per month.
- Some firms offer fixed-price packages based on specific services. For example:
- Other Considerations:
- If your business requires specialized accounting services, such as dealing with multiple revenue streams or international operations, expect to pay more.
- Additionally, firms located in large cities or high-cost areas tend to charge higher rates than those in smaller towns or rural areas.
How to Determine the Right Fit for Your Business
Finding the right accounting firm is crucial for the financial health and growth of your small business. Here’s a more detailed approach to help you select the perfect match:
- Assess Your Needs: Start by understanding what your business requires both now and in the future. Are you just starting out and need basic bookkeeping? Or do you need more specialized services like tax planning, payroll management, or financial forecasting? It’s also important to consider future needs. As your business grows, your accounting requirements may become more complex, so look for a firm that can scale with you.
- Research Firms: Take your time researching potential accounting firms. Look at their reputation in the industry by reading reviews, testimonials, and client case studies. Check their website for details on the services they offer and whether they’ve worked with businesses similar to yours in size and industry. Also, pay attention to their response time, customer service, and how professional they seem in their communication.
- Interview Candidates: Narrow down your options and schedule interviews with a few firms. This is your opportunity to ask about their experience working with small businesses like yours. Ask questions about their expertise, the tools they use, and how they stay updated on tax laws and financial regulations. Don’t be afraid to ask for examples of how they’ve helped businesses solve specific accounting challenges. Make sure their communication style aligns with your preferences, as you’ll need a firm that is easy to work with.
- Request Proposals: Once you’ve met with potential firms, request proposals from them. This will give you a clear picture of their pricing structure and the services they offer. Review each proposal carefully, comparing both the cost and the scope of services. Pay attention to whether they offer any value-added services, such as business consulting or strategic tax advice, that could benefit your business in the long run. Make sure there are no hidden fees and that the firm’s services align with your business’s needs.
Common Mistakes When Hiring an Accounting Firm
Choosing the right accounting firm is a big decision for any business, and there are a few common mistakes you’ll want to avoid to ensure you make the best choice:
- Choosing Based on Price Alone: It’s tempting to go with the cheapest option, but this can backfire in the long run. Cheap accounting services often come with lower quality, and you might find yourself dealing with errors, missed deadlines, or inadequate financial advice. Remember, your business’s financial health is too important to be compromised by cutting corners. Instead, look for a firm that offers a fair price based on the level of service you need and the value they provide.
- Lack of Communication: A strong working relationship with your accountant requires clear and constant communication. If the firm you’re considering is hard to reach or doesn’t respond promptly to your questions, this could lead to misunderstandings and missed opportunities. Choose a firm that values communication and is easily accessible, whether through phone, email, or meetings. Being able to ask questions and receive timely updates is crucial for your business’s success.
- Not Checking References: Many firms will boast about their services, but you should always do your due diligence. Check their references, ask for client feedback, and verify their credentials. Don’t just rely on testimonials from their website; talk to other business owners who have worked with them to get an honest assessment of their performance. This will give you a clearer picture of what it’s like to work with the firm and whether they can truly meet your needs.
Frequently Asked Questions (FAQs)
1. Do small businesses need accounting firms?
Small businesses may not always need accounting firms, but they can be valuable resources as they grow. Accounting firms provide expertise in managing finances, ensuring compliance with tax laws, and avoiding costly mistakes. For small business owners, outsourcing accounting saves time, allowing them to focus on other aspects of the business.
A good accountant also offers financial strategy advice, helping the business grow sustainably. While hiring a firm comes with a cost, it can ultimately save money by preventing errors and optimizing tax strategies. In the early stages, basic accounting might be manageable, but professional support becomes crucial as the business expands.
2. How much should I budget for accounting services?
Budgeting for accounting services depends on your business’s size and complexity. Small businesses can expect to spend between $500 and $5,000 annually, and the costs for more specialized services will increase.
3. Can accounting firms help with tax audits?
Yes, accounting firms can help with tax audits. They assist by reviewing financial records, ensuring compliance with tax laws, and representing the business during audits. Their expertise helps navigate complex audit processes, minimizing potential penalties or issues, and ensuring the business is well-prepared for any inquiries from tax authorities.
4. Are cloud-based accounting services secure?
Cloud-based accounting services are generally secure, but the level of security depends on the provider’s measures. Most reputable platforms protect sensitive financial data with strong encryption, multi-factor authentication, and regular security updates.
However, businesses should also take precautions, like using strong passwords and educating employees on data security. While cloud services can be more secure than on-premise solutions, no system is entirely risk-free.
Choosing a reliable cloud accounting provider with a proven track record of security can minimize potential vulnerabilities, offering both convenience and peace of mind when managing financial information.
5. How do I know if an accounting firm is trustworthy?
To determine if an accounting firm is trustworthy, check for certifications like CPA (Certified Public Accountant) or other relevant credentials. Look for firm reviews and client testimonials to gauge reputation. Ensure they have experience in your industry and offer transparent pricing. It’s also helpful to meet in person or virtually, discussing their approach and ensuring they communicate clearly. A trustworthy firm will prioritize ethical practices and be responsive to your needs, providing consistent, reliable advice.
Conclusion: Choosing the Right Partner for Financial Success
Selecting the right accounting firm can make or break a small business. Firms like Deloitte, EY, and RSM offer comprehensive services tailored to small businesses. By assessing your needs, researching options, and prioritizing expertise over cost, you can find the perfect partner to manage your finances and help your business thrive.
