US CPA Shortage and Investment in Accounting Services
US CPA Shortage and Investment in Accounting and Tax Services
In response to the scarcity of accountants in 2023, there has been a noticeable upsurge in accounting firm prices. The findings of the 2023 National Management of an Accounting Practice (MAP) Survey reveal that the median total net client charges for all firms in 2022 surged to nearly $1.1 million, marking a significant 9.1% increase compared to the previous year. This increment surpasses the 4.2% growth reported in the 2021 survey. According to NBC News, tax preparation and other accounting fees have gone up 8.3% from November 2023 from the same time a year before, November 2022. For more on that, see the source: https://www.nbcnews.com/business/economy/higher-tax-filing-costs-take-bite-refund-rcna135161
In 2024, outsourced accounting services can range from $300 to $5,000+ per month for US CPA firms. For fundamental bookkeeping, small business owners can anticipate hourly rates ranging from $50 to $100, with monthly outsourced bookkeeping ranging from between $300 and $3,000 a month. Keep in mind that the average salary of a full-time bookkeeper is $44,083 as of March 9, 2024 on salary.com, so outsourced accounting is actually a great value because of the blend of expertise you can receive at typically less than the cost of a full-time bookkeeper. It's essential to note that these figures represent ranges, and actual costs may vary based on factors such as business size, complexity of financial needs, and service specifics.
Tax preparation fees have gone up in 2024. The cost of tax preparation is influenced by factors such as the tax preparer's qualifications, the organization of tax records, and the complexity of the tax situation. For more information on how much a tax pro charges, please see this article from Ramsey Solutions: https://www.ramseysolutions.com/taxes/how-much-does-a-tax-pro-cost
Once again, these changes reflect the supply and demand dynamics within the accounting industry, exacerbated by a scarcity of US Certified Public Accountants available to cater to the increasing demand for their services.
