If you’ve ever wondered why one accounting firm charges twice as much as another, you’re not alone. On the surface, it can seem like you’re getting the same thing—a tax return, some bookkeeping, maybe a meeting or two. But dig a little deeper, and the difference in price usually reflects a difference in approach, training, and long-term value.
Here are five reasons why some accountants cost more—and what that might mean for your business.
1. CPAs Bring More to the Table
Certified Public Accountants (CPAs) aren’t just tax preparers with a fancier title. Becoming a CPA takes more education, tougher exams, and ongoing training every year. They’re held to strict ethical and professional standards, and most of the top-tier accounting graduates go this route. A CPA or EA can also represent you before the IRS and resolve any processing issues more effectively.
So when a CPA charges more, you’re paying for someone with a deeper understanding of tax law, business strategy, and risk management. If your business is growing or getting more complex, a CPA can help you make smarter decisions, not just file paperwork.
2. Cheaper Firms Often Spend Less Time
It’s not just what you’re paying—it’s how much time they’re spending. Firms that charge less usually need to move faster to stay profitable. That often means:
- Fewer questions asked
- More assumptions made
- Less fixing of your mistakes
You might not notice it right away, but over time it can cost you—in missed deductions, IRS issues, or just bad advice. Many a business owner has felt great about the bargain they were getting until they get audited for something they thought the tax guy was taking care of. If an accountant isn’t digging into the details, you probably have quite a few skeletons cluttering your closet that you don’t even know about.
3. Better Tech Means Faster (and Safer) Service
Firms that invest in better systems can offer smoother onboarding, more secure document handling, and faster turnaround times. They might have client portals, digital signatures, automated reminders—all the things that save you time and cut down on the back-and-forth. For instance, older style payroll systems require manual filing of payroll tax returns and payroll tax deposits, but modern systems automate these processes to get everything done on time and eliminate penalties.
Another example is that some firms invest in better reporting tools that make it much easier to understand your business financial trends. Those systems aren’t free. But they reduce errors, protect your data, and make your life easier. And that’s built into the price.
4. Overpromising Is a Growing Problem
With the accounting industry facing serious labor shortages, many firms are stretched thin but still overpromise what they can deliver. They say yes to too many businesses, then often take over 6 months to get your bookkeeping and taxes on track. In the meantime, you are getting farther and farther behind on your tax payments. At Bearden Stroup we have a dedicated onboarding team that consistently gets new clients back on track within 3 months. Of course, you still have to give us access to the source info. We aren’t mind readers…
It’s not always about bad intentions—it’s about capacity. The smaller the firm, the more losing one employee or having someone out because of an unexpected injury can set the whole team behind. When firms are short on qualified staff, service quality can suffer, even if the price tag initially looks attractive. A slightly larger firm with consistent processes and a stable team might actually give you more reliable value.
5. No Tax Planning = Lower Fees (and Bigger Bills Later)
Tax prep is backward-looking. Tax planning is forward-looking. Firms that charge more often include projections, planning sessions, and mid-year check-ins to help you avoid tax surprises.
Lower-cost firms almost always skip this. They just file your return and move on. That saves you a few bucks now, but it can lead to big bills later—especially if your income jumps, you sell assets, or your business structure changes. Over the years we have developed a 25-point tax planning process to ensure that you get quality tax planning. If you are looking to upgrade your tax and accounting services check out our article here to find out what to expect when you schedule a free meeting with us.
The Bottom Line
Not every business needs the highest-priced accountant in sight. But when you’re comparing firms, it’s critical to look at more than the price tag. Ask what you’re actually getting—what are their credentials, will you get a tax projection every year, and what kind of tech and security they use.
It turns out that in accounting, like most things, you often get what you pay for.