CPA fees are best evaluated by the work included and the decisions that work supports. For an established business, an accounting relationship may involve profitability analysis, cash flow planning, lender reporting, payroll, and coordination with the owner’s personal tax situation. Comparing that engagement with a quote for preparing a tax return requires looking closely at scope.
In a discussion about fees, Lorne Meinershagen explains why Meinershagen & Co. approaches accounting as an ongoing source of business insight. His central point is practical: owners need financial information they can use, along with experienced guidance to interpret it.
Understanding CPA fees starts with the engagement
Before comparing prices, identify what you need the accounting firm to accomplish. Preparing a return, reviewing monthly financial statements, and helping management evaluate a major expansion involve different responsibilities.
A useful proposal should make those responsibilities understandable. Ask which services are included, how frequently work will occur, who will handle questions, and which requests would require additional work.
The distinction matters when comparing providers. A lower quote may cover a narrower assignment. A higher quote may include recurring analysis or advisory time. Price alone does not establish either arrangement’s suitability.
For an owner managing several financial priorities, the better comparison is between clearly defined engagements that address the same needs.
Look for insight into profitability
Meinershagen & Co identifies a common opportunity for accountants to provide value: helping owners recognize where their businesses are not profitable.
Sales growth can feel encouraging while leaving important questions unanswered. Which products, projects, or departments contribute useful margins? Where have labor, materials, or overhead changed? Are management reports detailed enough to investigate?
Consider an contractor whose revenue rises while cash remains tight. Reviewing project results might reveal that certain jobs consume more labor than estimated. That finding could support a conversation about estimating practices, scheduling, or pricing.
This is an example, the point is to connect accounting work with a specific management question rather than assume that more sales automatically mean better performance. When evaluating an engagement, ask what reporting and discussion would help you understand those questions.
Connect business cash flow with personal priorities
Business owners often make decisions that affect both company resources and household finances. Meinershagen & Co specifically highlight planning for personal and business cash flows, paying down debt, and setting money aside for retirement.
Those priorities deserve to be considered together. An owner planning a substantial distribution may also be weighing equipment purchases, loan payments, tax obligations, and personal spending.
An accounting conversation can organize the assumptions behind those competing uses of cash. What must the company retain? Which commitments are approaching? What happens if customer payments arrive later than expected?
The purpose is to make the tradeoffs visible before money is committed. A forecast cannot eliminate uncertainty, but it can give the owner a framework for evaluating alternatives.
For retirement questions, distinguish CPA-based tax and cash flow planning from investment management. The engagement should specify the firm’s role and any coordination needed with other professional advisors.
Financial statements need to support lender conversations
Meinershagen & Co also discusses businesses whose financial statements receive close attention from their banks.
If a lender requests information, management needs to understand what has been requested, whether the records support it, and who will prepare the response. Inconsistent figures or unexplained balances can create additional questions.
The IRS explains that accurate financial statements help businesses manage operations and deal with banks or creditors. It also identifies reliable records as the foundation for preparing those statements. Read the IRS recordkeeping guidance.
Ask a prospective accounting firm how its proposed work relates to your lender’s requirements. Confirm the requested reporting format, delivery dates, and whether the lender requires a particular financial statement engagement.
Routine accounting support should not be assumed to satisfy every lender request. Clarifying requirements early helps define the appropriate work and avoids comparing proposals that promise different deliverables.
Access experienced guidance before hiring internally
A growing company may need more financial oversight before it is ready to employ a controller or chief financial officer.
A controller generally concentrates on accounting operations and financial reporting. A CFO generally has broader responsibility for financial strategy and planning. Actual responsibilities depend on the organization.
A CPA describes that outside accounting support is a way to access experience during that stage of growth. The arrangement can help an owner address financial questions while building toward a future internal hire.
Meinershagen & Co.’s fractional CFO services provide flexible financial leadership and can work alongside existing accounting staff. The firm describes these engagements as hourly, with involvement tailored to the business.
Compare the proposed outside scope with the responsibilities an employee would actually assume. Availability, decision authority, ongoing workload, and management accountability all matter. An outside engagement can address selected needs without duplicating every function of an internal executive.
Match the service to the business
Gross revenue means sales before expenses. It is different from business profit and from an owner’s personal net worth. Revenue alone does not define the work required. A company with straightforward operations may need a different level of support from one managing several entities, financing arrangements, locations, or reporting demands.
Meinershagen & Co.’s business accounting services can complement an internal team or provide outsourced support. The useful starting point is a discussion of your records, staffing, questions, and objectives.
Payroll may also belong in that discussion. Confirm employee counts, systems, responsibilities, and reporting needs directly rather than assuming that payroll is included in a broader accounting engagement.
Compare CPA fees with a clear checklist
A proposal becomes easier to assess when you can explain what you are buying. Before making a decision, work through these questions:
- Scope: Which accounting, tax planning, reporting, payroll, or advisory tasks are included?
- Frequency: Will work occur monthly, quarterly, annually, or for a specific project?
- Communication: Who is your contact, and how will questions and meetings be handled?
- Responsibilities: What must your team provide, review, or approve?
- Deliverables: Which reports, explanations, or planning discussions should you expect?
- Billing: How are fees calculated, and how will changes in scope be discussed?
Bring recent financial statements, your main reporting concerns, and a list of upcoming decisions to the conversation. These materials help both sides define a useful assignment.
A written scope also provides a reference for reviewing the relationship later. You can assess whether agreed work was delivered and whether your needs have changed.
Review the relationship as your needs change
Set a time to revisit the engagement after the initial work is underway. Review whether reports arrive when needed, whether explanations are understandable, and whether responsibilities are being met on both sides.
Bring concrete examples. Perhaps management can now identify overdue receivables more easily, or a reporting question still takes too long to resolve. Discuss those observations without assuming every improvement can be assigned a dollar value.
If the company adds an entity, changes payroll systems, or prepares for financing, revisit the scope. Keeping the assignment aligned with current needs makes future fee conversations more productive for everyone involved.
Frequently asked questions about CPA fees
Does a higher fee guarantee better results?
No. Evaluate the firm’s relevant experience, proposed work, communication, and fit with your needs. Ask how the engagement will address specific questions. A fee does not guarantee tax savings, profitability improvements, financing approval, or business growth.
Can an outside accountant work with our bookkeeper?
Yes, depending on the engagement. Your bookkeeper may continue handling daily transactions while an outside firm reviews reporting or provides additional oversight. Define responsibilities, access, review procedures, and communication so that important tasks have a clear owner.
Should we hire internally instead?
That depends on the work requiring daily attention, your management structure, and the level of responsibility involved. Discuss whether periodic outside support, a dedicated internal employee, or a combination would address your needs. Reassess the arrangement as the business develops.
How do we obtain an accurate estimate?
Describe the services you need, the condition of your records, your reporting deadlines, and the questions you want answered. Request a written explanation of scope and billing. Confirm how additional projects or substantial changes would affect the estimate.
Start with the decisions you need to make
The message about fees return to the usefulness of the relationship: understanding profitability, planning cash, addressing debt, preparing for retirement, and obtaining experienced financial guidance.
For Kansas City business owners, those needs may extend throughout the year. The right accounting scope should reflect your actual responsibilities and the information required to manage them.
Meinershagen & Co., LLC serves clients through offices in Grain Valley, Lee’s Summit, and Overland Park. Contact the firm to discuss your business, the questions you want answered, and an accounting engagement suited to your needs.