Is a Low-Cost accountant a good or bad idea?

In a nutshell: The cheapest option isn’t necessarily a good or bad choice in and of itself. The right price is the one that meets your actual needs. An affordable, competent accountant who specializes in your industry is a great deal; a low price that hides incomplete service or an uninsured professional can end up costing you a lot.

When looking at fees, the natural instinct is often to go for the lowest price. That’s understandable, but comparing two prices without considering what’s behind them is like comparing two quotes without knowing what they include. Here’s how to approach it.

Why a low price isn’t always a good deal

A very low rate may simply mean that the service is incomplete. Whatever the accountant doesn’t do, you’ll have to do yourself, or not at all, and that’s often where the trouble starts:

• missed deductions, meaning you end up paying more taxes than necessary;
• errors in tax returns, resulting in interest and penalties;
• a professional uninsured, with no safety net if a mistake occurs;
• Minimal follow-up, and no one to contact when you have a question.

In these cases, “inexpensive” ends up costing more than it saved.

When an affordable accountant is an excellent choice

On the other hand, a reasonable price is nothing to be suspicious of. An accountant can be affordable and Very good, especially in these situations:

• il knows your industry inside and out, so they work quickly and don’t miss any of your deductions;
• It’s a freelance without the overhead costs of a large firm;
• Your file is Simple and up-to-date, so it doesn’t take much time.

An accountant who specializes in your niche will often save you more in taxes than their fees cost you. Price is only part of the equation.

The right approach: Compare value, not just price

Before choosing based solely on price, ask yourself three questions:

• What’s Included What’s included in this price, and what isn’t?
• Is the professional insured, Registered with the professional association if they claim to be a CPA, and real (a business, reviews)?
• Does he know Your industry ?

That’s exactly the grid from The Bankeo Trust Index : We check the essentials before introducing you to someone, so that the price you’re comparing matches that of a true professional.

Determining the “right price”

To determine whether a rate is reasonable, you need a point of reference. The median cost of an accountant for an SME in Quebec is about $3,000 per year, ranging from $500 to $6,000 depending on the industry. A price well below the average for your industry warrants a question: what’s included? The price ranges by industry are listed in The Bankeo Fee Barometer. These are guidelines, not your price.

The right accountant at the right price for your situation? Find one for free.

In summary

• The cheapest option isn’t necessarily good or bad in and of itself: it all depends on what’s included and the person behind the price.
• A low price that hides incomplete service or an uninsured professional can end up costing you dearly.
• Compare value, not just price. Price benchmarks: The Bankeo Fee Barometer ; verifying their reliability: The Bankeo Trust Index.