NerdWallet Small-Business Advisory Board
This article has been informed by members of our NerdWallet Small-Business Advisory Board, a select group of small-business owners who help shape our content.
Small-business tax services range from DIY software to full-service accounting firms (and options between). Which of those services will best serve your needs depends on several key factors.
Many business owners think they can get by with filing their taxes once a year through popular DIY software. Those services may be fine for some businesses, but there’s a solid chance your business is ready for something more intentional.
Signs you've outgrown DIY tax software
Many industry professionals suggest that any of the following factors should give you pause to consider moving to expert human help on your small-business taxes.
- Your business structure changed (S-corp election, added a partner, formed an LLC).
- You have employees or pay contractors regularly.
- You operate in more than one state.
- You received an IRS notice or were audited.
- Your revenue exceeded $50K — a common point where deductions and structuring decisions get more complex.
- You're spending hours on taxes and still feel uncertain.
- You had a major business event this year (sale, acquisition, new equipment, investors).
It’s also important to understand what each of the different services can offer your business.
Ella Rivkin, CEO of ERPS Group, a full-service business advisory firm that offers strategic tax planning, explains that there is a big difference between a professional who files your tax return and one who acts as a strategic advisor. While one keeps your records accurate, the other works to lower your tax bill throughout the year. Having the former doesn’t mean you have the latter.
We’ll dive into that in the next section.
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Types of small-business tax services
When it comes to hiring a professional to handle your business taxes, the type of credential matters less than specialization and day-to-day focus. Here’s what each option covers and who it’s right for.
Full-service accounting firm
Best for: Business owners who want a single point of contact and year-round strategic tax and financial guidance.
Good to know: This is the broadest business tax service option. "A full-size accounting firm with strategic tax planning ... they're doing the bookkeeping, they're doing the payroll, the sales tax, the tax return, the strategic tax planning, even preferably insurance and wealth management, so they can do absolutely everything in house," Rivkin says.
🤓 Nerdy tip: This option eliminates the headache of coordinating multiple service providers and ensuring they’re all up to speed on what the other is doing. Not every business will be ready for this option, but it’s worth considering the investment to set up a strong financial ecosystem for your business from the start.
Expert on the ground
Ella Rivkin CEO | ERPS Group
CPAs (certified public accountants)
Best for: Business owners who need services beyond taxes, including formal financial statement review for lenders or investors and broader financial advising.
Good to know: CPAs are licensed at the state level and undergo rigorous training and examination, which does in part cover taxation, to earn the credential. They must also complete ongoing education requirements and license renewals. But not all CPAs are well versed in small-business taxes.
🤓 Nerdy tip: Working with a CPA in your state has great advantages. State and local tax obligations vary significantly, and local expertise is valuable.
Expert on the ground
Tish Heiss Founder & CEO | PKH Advisors, PLLC
Tish Heiss, enrolled agent and founder and CEO of PKH Advisors, PLLC, a Pittsburgh-based tax, accounting and advisory firm serving small businesses, speaks to how important it is to properly vet your chosen tax professional. A CPA may be a great fit for your business. You just need to do your research and ensure they have the tax expertise you require.
Enrolled agents (EAs)
Best for: Business owners whose primary need is tax prep, planning and IRS representation.
Good to know: EAs are licensed at the federal level. Unlike CPAs, they are exclusively focused on taxes. While EAs can handle complex business structures (S-corps, partnerships, multi-state), their specialization still varies. So it’s important to ask what entity types they work with regularly.
🤓 Nerdy tip: An EA can be less expensive than a CPA for comparable tax work.
DIY and assisted tax software
Best for: Sole proprietors and single-member LLCs with simple structures. You’ll want to have clean books, no employees and operate in only one state.
Good to know: Business tax software options range from fully DIY to professional tax preparers who file for you through the software platform. Notable paid software options include TurboTax Business, H&R Block Premium & Business, TaxSlayer Self-Employed and TaxAct. Additionally, there are several free tax filing options.
🤓 Nerdy tip: Evaluate these key features when considering a tax software solution:
- Support for your entity type.
- Accounting software integrations.
- IRS audit support.
- Option to access expert help (often for additional cost).
- State filing capabilities and fees.
Expert tip: Rivkin told NerdWallet on the topic of DIY tax software that ultimately the question isn’t whether the software saves you money. It’s really about whether you’re leaving more money on the table — through missed deductions, credits and other savings opportunities — than the cost of hiring a professional.
How to choose and vet the right tax professional
Focus your search for a business tax professional on the services you need rather than a specific credential. Find someone with demonstrated experience in your business structure and industry. Then interview them before you commit.
Which tax service makes sense for your business?
Cost estimates below are aggregated from publicly available CPA and tax-firm pricing pages and industry cost guides rather than a single formal survey. Actual fees vary significantly by location, business complexity, bookkeeping quality and the experience level of the professional you hire. Treat these as a general planning range, not a quote.
| Tax service | Use if | 2026 est. costs |
|---|---|---|
| DIY software |
| $0 to $230 federal + state filing fee. |
| EA or CPA with small-business tax specialty |
| $300 to $1,500+. |
| EA or CPA with experience in your business structure |
| $850 to $2,200+. |
| CPA |
| $1,000 to $10,000+. |
| Full-service accounting firm |
| $1,500 to $6,500/year. |
A note about fees: Tax preparation fees are typically deductible as a business expense on your tax return.
Questions to ask before you hire
Expert on the ground
Ella Rivkin CEO | ERPS Group
- How often do you meet with clients throughout the year?
- What percentage of your clients have my business structure?
- What's your billing structure (flat fee or hourly)?
- What's included in your fee (state returns, K-1s, amended returns)?
- How do you handle IRS notices or audits?
- How many of your clients get audited, and what does that process look like?
Red flags to watch for
- Only meets clients at tax season; no year-round communication.
- Doesn't ask for prior-year returns or spend much time when onboarding a new client.
- Shows no interest in your bank statements, balance sheet or operating agreement.
- Promises guaranteed refunds or specific outcomes.
- Does not have a preparer tax identification number (PTIN).
- Large client volume with very short meeting times.
Rivkin offers a helpful analogy for understanding the importance of finding a tax professional who isn’t overwhelmed by a long client list. It’s like going to a doctor who sees “40 patients a day and they only have five minutes to spend with you,” she says. “It’s just not possible to find out everything in five minutes.”
That’s why Rivkin says it’s really important to understand “how much time that professional can give to you because it’s not just putting the numbers together, it’s to actually dig deeper. That’s the only way that they can help you and provide successful results for you.”
How to verify credentials
Always verify a tax preparer’s credentials before hiring. The IRS offers a free directory of federal tax return preparers, which you can use to search and verify a variety of credentials. You can filter by CPA, EA and several other credentials. You can also just verify that a seasonal tax preparer meets the baseline legal requirement, which is a PTIN.
Do not hire a tax preparer who does not at least have a PTIN. The IRS requires any person who is paid to prepare federal tax returns to have this ID number. If a paid tax preparer doesn’t have a PTIN, then they are violating IRS rules and subject to penalties. Keep in mind that a PTIN is not a credential that speaks to any sort of formal education or preparation for the job; it simply ticks a legal box.
Additional options for verifying a CPA credential include the CPAverify Public Search tool offered by the National Association of State Boards of Accountancy (NASBA) and the website of your local state board. NASBA links to the State Board of Accountancy in each state.
Are you overpaying in taxes?
NerdWallet Small Business helps you maximize tax savings and save up to $15,000 with our partner Xendoo's year-round tax services.
Frequently Asked Questions
What's the difference between a CPA and an enrolled agent?
An enrolled agent (EA) is licensed by the federal government to advise on taxes. Their professional training and preparation is solely focused on taxation and legally representing clients before the IRS.
A certified public accountant (CPA), however, is a licensed accounting professional. While CPAs receive some education in taxation, it’s not a primary area of focus for all CPAs.
How much does a small-business tax accountant cost?
Costs vary depending on your business structure and specific needs, but can range from $150 to $400 per hour.
Do I need a CPA or can I use tax software?
A CPA or other tax professional is not required to file your business taxes, though it is recommended. If you choose to use tax filing software, consider the paid options that offer human-assisted guidance or review of your return before you file.
What should I look for in a small-business tax preparer?
Focus your search for a business tax preparer on the services you need rather than a specific credential. Find someone with demonstrated experience in your business structure and industry. Interview them to be sure they have extensive tax experience in those areas. Ensure, at the very least, that they have a PTIN. But a credential such as EA or CPA indicates the person has had rigorous training and examination in taxes specifically (EA) or business accounting, finances and taxes (CPA).
Is tax preparation a deductible business expense?
Yes, you can generally deduct the cost of your business tax preparation on your tax return.
