Search “best accounting firms for small business” and you’ll find listicles written by people who’ve never reconciled a balance sheet. They rank firms by logo design and website copy, not by the things that actually determine whether your books are clean, your taxes are optimized, and your business has the financial visibility to grow.
We’re an accounting firm. We work with small businesses every day. That means we have skin in the game — and it also means we know what separates a good firm from one that’ll cost you more in missed deductions and bad advice than you’d ever save in fees.
This isn’t a ranked list of firms. It’s the evaluation framework we’d want you to use if you were sitting across from us at a consultation — whether you hire us or someone else.
What Actually Makes an Accounting Firm “Good”?
A good accounting firm for a small business does more than file your taxes once a year. It gives you accurate financial data on a predictable schedule, helps you make decisions with real numbers, and scales with your business as it grows. That’s the baseline. Everything else is a bonus.
Here’s what actually matters when you’re evaluating firms — not the stuff they put on their homepage, but the stuff that affects your bottom line:
Industry experience beats brand name. A solo CPA who’s worked with 50 businesses in your industry will outperform a national firm that treats you like a number. The firm should understand your revenue model, your cost structure, and the tax nuances specific to your space. If you run a restaurant, they should know about tip reporting. If you’re a SaaS company, they should understand revenue recognition for subscriptions.
Service scope matters more than service count. You don’t need a firm that offers 30 services. You need one that covers the range you’ll actually use: small business bookkeeping, tax planning, financial reporting, and ideally some level of advisory or strategic support. A firm that only does compliance — filing returns, recording transactions — is a commodity. A firm that also tells you why your margins dropped last quarter is a partner.
Communication frequency is a litmus test. Ask how often you’ll hear from them. If the answer is “when your tax return is ready,” keep looking. Good firms provide monthly or quarterly financial statements and flag issues proactively, not reactively.
Technology tells you a lot. Firms still running on desktop software and mailing paper documents are behind. Look for cloud-based systems (QuickBooks Online, Xero, NetSuite), automated bank feeds, and a client portal where you can access your financials anytime.
Pricing transparency is non-negotiable. If a firm can’t give you a clear answer on what you’ll pay each month, that’s a red flag. More on this below.
5 Types of Accounting Firms and Who They Actually Serve
Not every firm is built for the same client. Here’s the honest breakdown — including the parts most firms won’t tell you.
| Firm Type | Best For | Typical Monthly Cost | What You Get | Where They Fall Short |
|---|---|---|---|---|
| Solo CPA / Freelancer | Solopreneurs, side businesses, simple tax situations | $200–$600/mo or project-based | Personal attention, flexibility, usually lower cost | Limited bandwidth, no backup if they’re unavailable, rarely offers advisory |
| Local / Regional Firm | Established small businesses wanting a relationship-driven firm | $500–$1,500/mo | Multi-service (bookkeeping, tax, some advisory), in-person meetings | Tech adoption varies widely, may not specialize in your industry |
| Outsourced Accounting Team | Growing businesses ($500K–$10M+) needing scalable support without full-time hires | $1,000–$3,500/mo | Full finance function (bookkeeping through CFO-level support), cloud-native, team-based | Less face-to-face, requires trust in remote processes |
| National Virtual Firm | Tech-savvy startups and digital businesses | $500–$2,500/mo | Standardized processes, modern tech stack, often startup-friendly | Can feel impersonal, high client-to-staff ratios at lower tiers |
| Big 4 / Large Firm | Mid-market and enterprise companies ($10M+ revenue) | $5,000–$25,000+/mo | Deep expertise, audit capability, international support | Pricing excludes most small businesses, small clients get junior staff |
The pattern we see most often: small business owners either overpay for a firm that’s too big for their needs or underpay for a solo practitioner who can’t keep up as they grow. The sweet spot for most businesses between $500K and $10M in revenue is either a strong local firm or an outsourced accounting team that provides a full finance function without the overhead of building one internally.
A quick note on CPA for small business specifically: “CPA” is a credential, not a firm type. A CPA can work solo, at a regional firm, or at a Big 4. The credential matters for tax work and anything requiring attestation — but for day-to-day bookkeeping, what matters more is the system, the process, and how responsive the team is.
Red Flags That Signal a Bad Accounting Firm
After working with hundreds of small businesses — including plenty who came to us after a bad experience elsewhere — these are the warning signs we see over and over:
1. They can’t explain your financials in plain language. If your accountant hands you a P&L and can’t walk you through what it means for your business in under five minutes, they’re not serving you. You’re paying for clarity, not just compliance.
2. You only hear from them during tax season. A firm that goes silent for 10 months and then rushes your return in March is not a partner. They’re a vending machine. Good firms are in regular contact — monthly at minimum.
3. They use outdated technology. Spreadsheets emailed as attachments. Manual data entry. Desktop-only software. These aren’t just inconveniences — they’re error risks. If your firm isn’t using cloud-based tools with automated bank feeds, you’re paying more for worse accuracy.
4. They push back on providing monthly financials. Some firms resist delivering monthly statements because it creates more work for them. If getting your own financial data feels like pulling teeth, something is wrong.
5. Pricing is vague or constantly shifting. “It depends” is not a pricing model. Good firms can scope your work and give you a predictable monthly number. If your invoices surprise you every month, that’s a problem.
6. They don’t ask questions about your business. An accountant who never asks what’s changing in your business — new hires, new revenue streams, expansion plans — is operating on autopilot. The best firms proactively ask because changes affect your tax strategy and financial reporting.
7. High staff turnover means you’re always re-explaining your business. If your point of contact changes every six months, you lose institutional knowledge. Ask about team stability during your evaluation.
What Small Business Accounting Services Cost
Pricing is the question every business owner wants answered, and most “best of” articles skip it entirely. Here are the realistic ranges based on what we see across the industry.
| Service Level | What’s Included | Typical Monthly Cost | Best For |
|---|---|---|---|
| Basic Bookkeeping | Transaction recording, bank reconciliation, basic reports | $300–$800/mo | Early-stage businesses with simple financials |
| Full-Service Accounting | Bookkeeping + financial statements + tax planning + advisory | $800–$2,500/mo | Businesses with $500K–$5M revenue needing real financial visibility |
| Accounting + Fractional CFO | Full-service + forecasting, cash flow management, strategic planning | $2,500–$5,000+/mo | Scaling businesses, PE-backed companies, multi-location operations |
| Tax Preparation Only | Annual business + personal return filing | $1,000–$2,500/year (project-based) | Businesses that handle their own books but need professional tax filing |
What drives cost up: multiple entities, multi-state tax filings, high transaction volume, complex revenue recognition, or significant accounts receivable/payable. A single-location service business with 50 transactions a month is a very different engagement than a multi-unit franchise doing 500.
What to watch for: firms that quote low then add charges for “extras” that should be standard — like preparing monthly financials or responding to questions. The cheapest option isn’t the best value if it creates more work for you or misses deductions that cost you thousands.
For a deeper look at what outsourced accounting costs at different stages, we break it down further in our outsourced accounting pricing guide.
If your business is growing beyond what basic bookkeeping can support, here’s how to know when it’s time to bring in outside help.
7 Questions to Ask Before You Hire an Accounting Firm
These are the questions we’d ask if we were the ones hiring. Use them during any consultation — including ours.
1. “What industries do you specialize in?” Generic answers like “we work with all small businesses” should give you pause. A firm that serves restaurants, SaaS companies, and law firms equally well probably isn’t going deep on any of them.
2. “What does your onboarding process look like?” A structured onboarding tells you the firm has systems. A vague “we’ll figure it out as we go” tells you they don’t.
3. “How often will I receive financial statements, and in what format?” Monthly is the standard you should expect. If they hesitate, push back. You need to know where you stand financially at least once a month.
4. “Who will be my day-to-day contact, and what’s their experience level?” Some firms sell you on a partner’s credentials, then hand your account to a junior associate. Make sure you know who’s actually touching your books.
5. “What accounting software do you use, and will I have access?” You should be able to log in and see your financials anytime. If the firm controls access or uses proprietary systems you can’t take with you, that’s a lock-in risk.
6. “What happens if I outgrow your current service level?” The best firms scale with you. Ask specifically: do they offer tax planning for small business beyond annual filing? Can they support you through a fundraise, an acquisition, or opening a second location?
7. “Can you share references from businesses similar to mine?” Testimonials on a website are curated. Ask for a real reference — a business owner you can actually talk to. Any firm worth hiring will be comfortable with this request.
When to Hire a Firm vs. Keep Accounting In-House
This isn’t a one-size-fits-all answer. It depends on three things: your revenue, your complexity, and your time.
Under $200K in revenue: Most businesses at this stage can manage with accounting software (QuickBooks, Xero, Wave) plus a CPA for annual tax preparation. Total cost: $50–$200/month for software plus $500–$1,500 for tax filing.
$200K–$1M in revenue: This is where DIY starts breaking down. Transaction volume increases, tax situations get more complex, and the cost of errors grows. A part-time bookkeeper or outsourced bookkeeping service starts making financial sense — and saving you 10–20 hours a month you can redirect toward growth.
$1M–$5M in revenue: At this stage, you need real financial reporting, not just bookkeeping. Monthly P&L, balance sheet, cash flow statements — and someone who can interpret them. A full-service accounting firm or outsourced accounting team is the right fit here.
$5M+ in revenue: You likely need both accounting support and strategic financial leadership. This is where combining outsourced accounting with a fractional CFO gives you the full finance function without the $200K+ salary of a full-time hire.
The inflection point for most businesses? Somewhere between $500K and $1M. That’s when the cost of not having professional accounting — in missed deductions, late filings, bad decisions based on bad data — exceeds the cost of hiring a firm.
Frequently Asked Questions
How much should a small business pay for an accountant?
Most small businesses spend between $300 and $2,500 per month, depending on the scope of services. Basic bookkeeping runs $300–$800 monthly, while full-service accounting with tax planning and advisory ranges from $800 to $2,500. Annual tax preparation as a standalone service typically costs $1,000–$2,500 per filing.
What’s the difference between a bookkeeper, an accountant, and a CPA?
A bookkeeper records transactions and reconciles accounts — they maintain the data. An accountant interprets that data, prepares financial statements, and provides reporting. A CPA (Certified Public Accountant) has passed the CPA exam and is licensed by their state, which allows them to perform audits, represent you before the IRS, and sign off on attested financial statements. For most small businesses, what you actually need is a team that covers all three functions, not just one credential.
Can I use an accounting firm that isn’t local to my area?
Yes. Cloud-based accounting tools have made remote accounting just as effective as in-person — and sometimes more efficient, since everything is documented digitally rather than discussed over paper in a conference room. What matters is responsiveness, communication cadence, and whether the firm understands your state’s tax requirements. Many businesses now work with firms across the country with no issues.
Getting the right accounting firm isn’t about finding the “best” name on a list. It’s about finding the right fit — a firm that understands your business, communicates on your terms, and gives you the financial clarity to make better decisions.
The owners who get this right early build businesses with cleaner books, lower tax bills, and fewer surprises. The ones who get it wrong spend years cleaning up messes that could have been avoided.
If you’re evaluating firms right now, use the questions and red flags above as your checklist. And if you want to talk through what the right level of accounting support looks like for your business specifically — schedule a free consultation with our team.
About the Author Exact Partners — CPAs and financial advisors specializing in outsourced accounting, fractional CFO services, and tax strategy for startups, franchises, and growing SMBs. Headquartered in Buffalo, NY, serving clients across North America. Learn more →
