When you’re running a small business, wearing multiple hats is part of the job. From marketing to customer service to financial management—it’s all on your plate. One of the biggest questions entrepreneurs face is: Should you hire a bookkeeper or do it yourself (DIY)?
While handling your own books may seem like a great way to save money, bookkeeping mistakes can cost you far more in the long run.
In this article, we’ll help you weigh the pros and cons of both options so you can make the best choice for your business stage, skills, and goals.
What Does a Bookkeeper Do?
A bookkeeper manages the day-to-day financial records of your business. Their work ensures that your income and expenses are accurately recorded and that your books are up to date.
Typical Bookkeeping Tasks Include
- Tracking income and expenses
- Reconciling bank accounts
- Managing invoices and bill payments
- Generating basic financial reports
- Preparing records for your accountant or tax professional
Good bookkeeping lays the foundation for accurate taxes and smarter financial decisions.
Pros of DIY Bookkeeping
Doing your own books can be rewarding—especially when you’re just starting out and have fewer transactions to manage.
Advantages of the DIY Approach
- Saves money (no need to pay a bookkeeper)
- Keeps you closely involved with your finances
- Helps you learn how your business operates financially
- Plenty of free or low-cost tools available (like Wave, Excel, or QuickBooks Simple Start)
DIY can work well in the early stages of business or if you’re financially savvy.
Cons of DIY Bookkeeping
While DIY sounds cost-effective, it comes with trade-offs—mainly time, risk of error, and opportunity cost.
Potential Downsides
- Time-consuming, especially if you’re not familiar with bookkeeping
- Prone to errors that can cause tax issues
- Harder to keep up with monthly or quarterly reconciliations
- Less time to focus on sales, strategy, or product development
Time spent bookkeeping is time not spent growing your business.
Pros of Hiring a Bookkeeper
Hiring a professional bookkeeper can remove a major mental load from your day-to-day work and help ensure financial accuracy.
Why It Might Be Worth It
- Expertise means fewer errors
- Saves time and boosts productivity
- Helps with budgeting, cash flow, and growth planning
- Prepares cleaner records for taxes and compliance
A bookkeeper pays for themselves by freeing up your time and helping you avoid costly mistakes.
Cons of Hiring a Bookkeeper
Of course, hiring a professional isn’t for everyone—especially in the beginning.
Considerations Before Hiring
- Ongoing monthly cost
- Less financial “visibility” if you’re hands-off
- Finding the right professional takes time
- You’ll still need to provide accurate source documents (receipts, sales data, etc.)
Hiring a bookkeeper is an investment—be sure your revenue can support it.
When to Switch from DIY to a Bookkeeper
There’s no perfect formula, but a few signs indicate it might be time to delegate.
Key Indicators It’s Time to Hire
- You’re consistently behind on bookkeeping tasks
- Tax season is a nightmare every year
- You’re making more than $100K in annual revenue
- You’re spending more than 5+ hours/month on financial admin
- You’re planning to scale or take on investors
As your business grows, your financial systems need to grow with you.
Hybrid Option: Use Software + Occasional Help
You don’t have to go all-in one way or the other. Many small businesses use DIY-friendly accounting tools and hire a bookkeeper just for quarterly reviews or tax prep.
Tools That Support Both Models
- Wave – Free, easy-to-use for invoicing and expense tracking
- QuickBooks – Offers scalable features with access to pro advisors
- Xero – Great for collaboration with a remote bookkeeper
- Bench – Monthly bookkeeping service with real people behind the scenes
Start with DIY, then transition to hybrid or full-service as needed.
Final Thoughts
So, should you hire a bookkeeper or DIY? The answer depends on your business complexity, available time, and personal confidence with finances.
If you’re just starting out and love digging into numbers, DIY might be fine. But if you’re growing fast, feeling overwhelmed, or making errors—it may be time to hire help.
The key is to make a decision that supports your goals and frees you up to focus on what matters most: building a business you love.
Need Help Deciding?
- 📊 Download our free DIY vs Bookkeeper Decision Checklist
- 💬 Comment below: Are you managing your books yourself or outsourcing?
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