How Much Does an Accountant Cost for an Authorized Business in Ramat Gan?

What is an Authorized Business and Who Does It Apply To?

An authorized business is a self-employed person registered with the tax authority with an annual turnover exceeding a certain amount, or who has chosen to declare for VAT purposes. Unlike an exempt business, an authorized business is required to maintain full accounting records, file periodic VAT reports, and calculate annual tax advances.

If you are a small business owner in Ramat Gan — a store, service provider, family business, or professional self-employed person — you are likely an authorized business. The question that often arises is: how much will this cost? The answer depends on the size of your business, the number of transactions, the complexity of reporting, and whether you manage the books yourself or require full professional guidance.

On this page, we will review what is included in accounting services, how prices are actually determined, and when it is worthwhile to invest in professional accounting services.

What is Included in Accounting Services for a Licensed Business Owner?

When discussing "accountant fees," you need to understand exactly what you are paying for. A licensed business owner requires more than basic bookkeeping — they need regular tax reporting, full accounting management, and annual financial statements.

Services typically included in a licensed business owner accounting package:

• Monthly or periodic bookkeeping — recording all documents, invoices, receipts, and payments in accounting software.
• Periodic VAT reporting — submitting VAT reports to the tax authorities monthly or bimonthly (depending on the field).
• Calculation of tax advance payments — estimating the tax you need to pay in advance to avoid surprises at year-end.
• Annual financial statement — preparing the income and security report for the tax authorities at year-end.
• Basic tax consultation — answers to questions about deductions, allowable expenses, and mandatory reports.

Every accounting firm operates slightly differently. Some also provide annual tax planning consultation, while others also coordinate with national insurance and pension. It is important to ask explicitly what is included in the package you are paying for.

How is the Actual Price Determined?

There is no fixed price for accounting services. The price depends on several factors:

1. Scope of activity — a licensed business owner with 50 invoices per month is not the same as a business owner with 500 invoices. The larger the business, the more complex the management.
2. Type of business — a merchandise business (requires inventory management), services (simpler), or a construction business or partial company ownership (more complex).
3. Level of digitization — if you are already using accounting software and streaming the data, the cost is lower. If everything is on paper, it takes more time.
4. Frequency of reporting — monthly VAT reporting requires more work than bi-monthly reporting.
5. Additional services — in-depth tax consulting, annual tax planning, or audit preparation may add costs.

At offices in Tel Aviv and Ramat Gan, the average price for a small to medium-sized licensed business falls within a certain range, but it is not fixed. It is advisable to compare several offices and ask whether they offer a fixed price or a variable price based on scope.

Common Mistakes in Choosing Accounting Services

Authorized business owners looking to save on costs tend to make mistakes that ultimately cost them more:

• Choosing a cheap accountant without checking their background — A low-cost office may be one that assigns work to inexperienced employees or fails to update knowledge of new laws. Incorrect reporting to the tax authority can result in fines.
• Managing books yourself to save money — If you are an authorized business owner, managing books yourself without accounting experience can lead to errors in VAT reporting, improperly reported deductions, or expenses not accepted by the tax authority.
• Failing to report expenses to reduce insurance contributions — While this reduces your security contributions, it also reduces your deduction in national insurance and your future pension.
• Not understanding the difference between exempt business owner and authorized owner — Some business owners do not understand that an authorized business owner is required to file periodic reports, and this is not something you can "do at the end of the year."
• Failing to update your accounting office about changes in your business — If you opened a new branch, purchased major equipment, or started exporting, the office needs to know. This affects your taxation and reporting.

When Should You Consult a Professional Accountant?

If you are a licensed business owner in Ramat Gan, it is generally advisable to consult an accountant in several situations:

You have just started your business. At the beginning of your journey, it is important to establish the correct foundation — how to maintain records, how to report, and what types of expenses you can deduct. Early mistakes can accumulate throughout the entire year.

Your revenue is growing. If you started as an exempt business owner and have reached the threshold for a licensed business owner, this is the time to consult. Many things change — VAT reporting, tax prepayments, annual reports.

You are unsure if you are paying the correct amount of tax. If you feel there is a discrepancy between what you are paying as a prepayment and what you should be paying, this is a sign that you should have it checked by a professional firm.

You have complex or international transactions. If you export, import, or work internationally, taxation becomes complicated. This is not something you can manage on your own without proper knowledge.

You want annual tax planning. A good firm does not just report — it also helps you save through proper planning of expenses, payment dates, and utilizing tax benefits you are entitled to.

What Does It Actually Cost? Real Price Ranges in Ramat Gan

If you're looking for a concrete number — it depends. But to give you an idea, here are a few scenarios:

Small Business (Annual turnover up to NIS 500,000): Firms typically offer a monthly fee or fixed annual rate. The price usually falls within a reasonable range, but it varies depending on the business. Some firms offer a flat fee for each business of this size.

Medium Business (Annual turnover NIS 500,000 to 2 million): Here the rate is typically higher, as there are more transactions and complexity. Firms may charge based on billable hours, or provide a higher fixed rate.

Large Business (Annual turnover above NIS 2 million): Here the reports are more complex, and you may require ongoing tax consultation. The price is typically determined based on your business's specific needs.

Remember: the lowest price is not always the best. A firm that charges very little may not provide you with the service you need, and you'll end up paying more in penalties or corrections.

What Affects the Price Beyond Scope?

There are several things that not every firm mentions, but they impact the cost:

Accounting Software. If you are already using software like Wave, Zoho, or another program, this reduces the firm's manual work. If the firm needs to enter everything manually, it takes more time.

Digital Banking. If you are connected to your bank and all transactions are automatically imported into the software, this saves a lot of time and errors.

Invoice Management. If you issue hundreds of invoices per month, it affects the price. If you issue 10 invoices, it is much cheaper.

Employee Management. If you have employees, you need to manage payroll, pay slips, and social security insurance. This adds work for the firm.

Additional Consulting Reports. If you want a monthly report on profitability status, maintenance and checkpoints, or in-depth tax consulting, this is an additional cost.