How Much Does a CPA Cost?

CPA vs CFP

Certified financial planners (CFPs) may provide a limited amount of The Nash Group, P.S. tax advising as part of their broader financial planning services. But establishing a relationship with a CPA may prove helpful long term. CPAs may be more familiar with the intricacies of U.S. tax code than CFPs and may be able to help you manage your tax burden better through lesser known tax credits or deductions.

“CFPs can advise businesses and individuals on tax saving, investment, retirement and educational funds based on the financial situation of their clients,” says May Jiang, a finance and tax advisor at Offit Advisors in Towson, Md.

Experts generally recommend you engage the services of both a CFP and a CPA to manage your financial life most efficiently. “CPAs and CFPs are complementary professionals,” says Moss. “For example, CFPs help to make investment planning decisions to meet family and/or business financial goals. CPAs work in tandem to help reach those goals by minimizing tax exposure, reducing costs and making sure that the compliance piece, like Internal Revenue Service filings, are done properly.”

How to Choose a CPA

Because they examine confidential financial records and generally have access to sensitive information, like your Social Security number, it’s imperative to work with a CPA that you trust. Because of that, most people find the CPAs they work with through reviews and referrals from people they already know and trust.

If you’re unable to find a trusted CPA this way, you can turn to the U.S. Internal Revenue Service’s list of professional tax preparers. The IRS doesn’t rank the preparers on its list, but it does include credentials and qualifications. You can also search for your state’s board of accountancy or CPA society for online directories.

Once you’ve located potential CPAs, be sure to confirm their credentials at a site like CPA Verify, a free database that centralizes records from state boards of accountancy. Search for any reviews you can find of CPAs you’re interested in and then set up an introductory meeting.

During this meeting you’ll want to suss out their experience, like how long they’ve been working and who their typical client is, as well as determine how much they charge. Bringing a copy of your most recent tax return to this meeting will help with that estimate.

Be sure to pay attention not just to the questions you ask, but the questions they ask you as well. “A good CPA will ask a lot of detailed questions so they can understand you better and provide better service,” says Abir Syed, a CPA and ecommerce consultant at UpCounting, in Montreal, Canada. “A bad CPA just wants to sign you as a client.”

The cost of working with a certified public accountant varies based on a CPA’s experience level, the type of services offered and where the CPA is located. A CPA in Manhattan, New York, for example, will cost more than one in Manhattan, Kansas.

According to the National Society of Accountants (NSA), the average fee charged by a tax preparer for a Form 1040—that’s an individual federal income tax return—as well as a state return is $176 when you have no itemized deductions. This rises to $273 when you itemize.