Included is a method of preparing a compound for bonded magnets, the method including: coating a magnetic material having an average particle size of 10 μm or less with a thermosetting resin and a curing agent at a ratio of the equivalent weight of the curing agent to the equivalent weight of the thermosetting resin of 2 or higher and 10 or lower to obtain a coated material; granulating the coated material by compression to obtain a granulated product; milling the granulated product to obtain a milled product; and surface treating the milled product with a silane coupling agent to obtain a compound for bonded magnets, the method either including, between the granulation and the milling, heat curing the granulated product to obtain a cured product, or including, between the milling and the surface treatment, heat curing the milled product to obtain a cured product.