Bookkeeping and accounting services in Canada especially in cities like Toronto and Vancouver can cost a lot!
If you decide to go ahead with hiring a CPA in Canada, you should know that work done by CPAs is costly. It can go up to $120 to $250 per hour. You can, though, get the routine work done by junior accountants who charge $60 to $120 on an hourly basis. Sometimes, accounting services provided by top talents in a firm can cost you up to $500 per hour.
Now, you may wonder why CPAs charge so much!
Why CPA Services Cost So Much
The services provided by CPAs are exclusive and complex. They have required training and skill set to navigate the complex tax rules and law, financial reporting standard and preparation of financial statements. Ever wonder, why your bank asks for notice-to-reader financial statements? The answer is to ensure that a Chartered Accountant has prepared it in compliance with the applicable financial reporting standards.
Another reason, the work is done by CPAs might be too difficult for the junior staff or regular bookkeepers to handle. As a result, the cost of services rendered by CPAs is often expensive.
How can I save on Accounting and Tax Filing costs?
There is no doubt, the costs charged by CPAs are due to their superior skill set and their services are subject to rules and regulations. However, you may take some steps to reduce the cost. Let’s see how!
1. Do Your Own Bookkeeping
You can keep a junior accountant, a good bookkeeper or staff to do your day-to-day bookkeeping, preparing accounts, making journal entries, and so on. This way, the CPA you hire will have ready information (s)he can use to provide professional tax services to you. You can organize your books before the tax season so that CPAs need less time to do their job, saving you some money in the process.
You can also prepare your profit and loss accounts and balance sheets beforehand and save on expensive bookkeeping hourly rates by CPA firms.
2. Take Advantage of Off-Peak Pricing
Seasonality plays a big role in the tax services business in Canada. CPAs generally tend to increase their rates at the busiest times of the year, for example, first calendar quarter of the year. If you approach a CPA to prepare your tax returns when he is handling several jobs, you are surely going to pay more.
The best way to save up is to hire the services of the CPA during off-peak seasons in the year. You not only get low rates but also get your accounting done in advance for full compliance.
3. Mind the tax filing deadlines
Preparing your accounts on time can help you avail of lower costs. Don’t go banging on the doors of a CPA three days before the tax filing deadline. Approach an accounting firm well before your deadline while there is time to avail of cost-effective rates.
4. Outsource Your Accounting and Bookkeeping Services
Many businesses outsource their accounting to increase efficiency and save money. Many CPA firms provide outsourced bookkeeping and accounting services. You can hire the services of a professional CPA at fixed costs and lock your fixed cost. Many of the firms in Canada offer a multi-tiered pricing system in such cases. If required, you can only avail of CPA services for complex tasks and on-demand basis. This way you can lock your bookkeeping costs and minimize your tax filing costs while utilizing the best resources.
5. Be Smart to Save Up
Compare prices and see if outsourcing is more profitable than keeping your own accounting staff. If outsourcing saves money, it’s best to hand over your accounting responsibilities to a reputable firm that provides quality bookkeeping services. In some cases, outsourcing is not a recommended approach especially when it involves some admin work. It is best to retain some admin cum bookkeeper while co-source bookkeeping services to the firm.
Maroof HS CPA Professional Corporation is a CPA firm providing a full-scale accounting and tax services in Canada. You can reach us for all your corporate tax services, personal income tax services, financial statements notice to readers and other professional accounting services. For small businesses looking to optimize their accounting and compliance costs, we do offer tailor-made fixed cost agreement which includes bookkeeping services as well.