DIY Bookkeeping vs Hiring a Bookkeeper: Which Is Right for Your Business?

Emily Jett
Jan 14
3 min read

One of the most common questions business owners ask is: "Should I keep doing my own bookkeeping, or should I hire a bookkeeper?”

The answer isn’t one-size-fits-all. It depends on your business stage, transaction volume, time capacity, and comfort with financial systems.

In this guide, we’ll break down DIY bookkeeping vs hiring a bookkeeper, the real pros and cons of each, the hidden costs people don’t talk about, and how to decide which option actually makes sense for you right now.

Why This Decision Matters

Your bookkeeping impacts far more than your tax return.

It affects:

Cash flow visibility
Profitability tracking
Business decisions
Stress levels
Growth readiness

Choosing the wrong approach doesn’t just cost money—it can cost time, energy, and clarity.

Option 1: DIY Bookkeeping

DIY bookkeeping means you manage your own financial records, typically using software like QuickBooks Online.

This usually includes:

Categorizing income and expenses
Managing bank feeds
Reconciling accounts
Preparing reports for tax time

Pros of DIY Bookkeeping

1. Lower upfront cost DIY bookkeeping avoids a monthly service fee, which can feel appealing in the early stages of business.

2. Full control You’re directly involved in every transaction and decision.

3. Educational value Handling your own books helps you learn how money flows through your business.

Cons of DIY Bookkeeping

1. Time-consuming Bookkeeping takes longer than most business owners expect—especially without training.

2. Higher risk of errors Common issues include miscategorized expenses, duplicate transactions, missed deductions, and unreconciled accounts.

3. Stress and avoidance Many business owners delay bookkeeping because it feels overwhelming or intimidating.

4. Limited financial insight DIY books are often “technically done” but don’t provide meaningful insights for decision-making.

When DIY Bookkeeping Makes Sense

DIY bookkeeping may be a good fit if:

Your business is very small
Transaction volume is low
You enjoy financial work
You’re willing to learn proper bookkeeping practices

Option 2: Hiring a Bookkeeper

Hiring a bookkeeper means outsourcing the ongoing management of your financial records to a professional.

This typically includes:

Monthly reconciliations
Accurate categorization
Clean financial reports
Ongoing review and oversight

Pros of Hiring a Bookkeeper

1. Accuracy and consistency Your books stay clean and up to date month after month.

2. Time savings You reclaim hours every week to focus on running and growing your business.

3. Reduced stress No more guessing, avoiding your finances, or scrambling at tax time.

4. Better financial decisions Clear reports allow you to understand profit, cash flow, and trends.

5. Tax-ready books Your accountant receives organized, accurate records—saving time and money.

Cons of Hiring a Bookkeeper

1. Monthly investment Professional bookkeeping comes with a recurring cost.

2. Trust and communication required You’ll need to share access and communicate regularly.

3. Finding the right fit matters Not all bookkeepers offer the same level of service or specialization.

When Hiring a Bookkeeper Makes Sense

Hiring a bookkeeper is often the right choice if:

You’re behind on your books
Your business is growing
Bookkeeping causes stress or confusion
You want reliable financial clarity

The Hidden Cost Comparison Most People Miss

DIY bookkeeping doesn’t just cost time—it can cost money in ways that aren’t obvious.

Hidden DIY costs include:

Hours spent learning and fixing mistakes
Missed deductions
Inaccurate reports
Cleanup fees later
Poor financial decisions due to unclear data

Hiring a bookkeeper costs money—but often prevents these issues and saves money over time.

A helpful question to ask is: “What is my time actually worth?”

DIY vs Hiring a Bookkeeper: Which Is Right for You?

DIY Bookkeeping Might Be Right If:

You’re in the early stages
Your finances are simple
You enjoy hands-on financial work
You have the time to do it consistently

Hiring a Bookkeeper Might Be Right If:

You feel overwhelmed by bookkeeping
You’re unsure your numbers are accurate
Your business is growing
You want clear, reliable financial insight

There’s no permanent choice—many business owners start DIY and hire support as they grow.

Final Thoughts

Choosing between DIY bookkeeping and hiring a bookkeeper isn’t about ability—it’s about capacity.

At some point, your business needs systems that support growth instead of creating stress. Whether you stay DIY for now or bring in professional support, the goal is the same: clarity, accuracy, and confidence in your finances.