Running a small business means juggling a million things at once—and just when you think you've got it all figured out, boom! Another unexpected expense.
Working with a CPA is a smart move—your taxes are filed on time, your books stay organized, and you get to focus on growing your business instead of stressing over spreadsheets. But nothing ruins that sense of relief faster than opening an invoice and seeing a bunch of unexpected charges staring back at you.
A CPA can handle a lot for you, but not every service comes standard. Depending on your CPA's policies, you might be charged hourly rates for work outside of their usual scope—and it's a good idea to know what that entails if you want to avoid a surprise bill.
Wondering what’s included, and what’s not? Here are some of the more common "surprises" you might recognize from your last invoice.
Responding to a Tax Notice
If the IRS sends you a letter, don’t panic—your CPA can help you sort it out. They’ll decipher what the IRS wants, craft a response, and make sure everything is handled correctly. But fair warning: this isn’t usually included in standard CPA services. You’ll likely see an extra charge for their time, and the cost depends on how much of a mess the IRS wants untangled.
The exception? If your CPA made an error on your return and the notice is about that mistake, they’ll typically fix it for free. But if another preparer was responsible, expect to pay for the cleanup.
| 📚 Looking to DIY instead? Our Tax Notice Library is FREE. |
Contacting the IRS
Sometimes, a CPA needs to call the IRS on your behalf—whether it’s to clarify an issue, resolve an error, or check on the status of a filing. If you’ve ever tried calling the IRS yourself, you know this isn’t a quick or painless process. Between endless hold times, confusing bureaucracy, and the need for precise language, these calls can take a while. But having your CPA handle it ensures that everything is communicated correctly and efficiently.
Because it requires time, patience, and expertise to navigate IRS red tape effectively, you'll probably be paying extra for this service. But let’s be honest—paying your CPA to sit on hold with the IRS is a far better use of time than doing it yourself.
Research Services
CPAs don’t have every tax law memorized—after all, the tax code isn’t exactly light reading. Sometimes, they need to dig into the details to ensure you get the best possible outcome. If it’s a quick clarification on something they should reasonably know, you won’t see an extra charge. But if your situation is more complex—think multiple businesses, foreign investments, or an obscure tax credit—it may require a deeper dive. And that research time? It’s billable. While it might not be thrilling to pay for, thorough research could save you far more in taxes than it costs upfront.
Advisory and Strategic Planning
Advisory and strategic planning services go beyond basic tax prep and bookkeeping—they’re about helping you make smart, forward-thinking financial decisions. Unlike compliance work, which follows a set process, advisory services are tailored to your specific business goals and challenges.
Because of the customized nature of strategic planning, CPAs typically charge extra for these consultations. But the cost often pays for itself—after all, a well-planned tax strategy or a smart financial move could save you thousands down the line. Think of it as an investment in your business’s future rather than just another expense on your CPA’s invoice.
Completing Additional Forms
Sometimes, your CPA will need to complete additional forms beyond your standard tax return, whether it’s for tax elections, extensions, or special filings. These forms often require extra calculations, documentation, and expertise to ensure accuracy and compliance with tax laws.
Because they fall outside of routine tax preparation, they typically come with an additional cost. If you didn’t discuss these potential filings with your CPA beforehand, you might be in for a surprise charge when tax season wraps up.
To avoid unexpected fees, it’s best to clarify what forms you may need ahead of time and ask about any additional costs upfront.
Additional Services
CPAs often take on one-time or specialized projects that don’t fit neatly into the categories we’ve already covered. Maybe you need help setting up payroll, navigating a tricky business restructuring, or integrating a new accounting system—these tasks fall outside standard tax and bookkeeping work but can be critical to keeping your business running smoothly.
As you might expect, additional services typically come with an additional cost. But that doesn't mean it has to catch you off-guard—if you anticipate you'll need any specialized assistance, it's always a good idea to bring it up with your CPA early on. That way, you'll be on the same page about the scope and cost of the work long before it shows up on your bill.
When should I expect to receive bills from my CPA?
CPAs generally bill for extra services as they come up, but billing practices vary from firm to firm. Some charge immediately after completing the work, while others might roll additional fees into your regular invoice. Some even bundle certain services into an annual or monthly rate, like a Netflix subscription for your finances.
Before any extra work begins, your CPA should give you a heads-up about potential costs so you’re not caught off guard. If you’re unsure how your CPA handles billing, it’s always worth asking upfront to avoid any unexpected charges later.
The bottom line
Understanding CPA fees isn’t just about avoiding sticker shock—it’s about making sure you’re getting the most value out of your accountant. The more you know about what’s billable and why, the fewer surprises you’ll encounter when the invoice lands in your inbox.
If something on your bill doesn’t make sense, ask. A good CPA will be upfront about their pricing and happy to explain what you’re paying for. And if you’re on the fence about whether a particular service is worth the extra cost, consider this: smart financial guidance can save you far more than it costs.
So, if you’re looking for a CPA who’s transparent, proactive, and won’t leave you guessing about your bill, it might be time for a conversation. Get in touch, ask the tough questions, and make sure you’re getting the expert advice your business deserves.
