Accurate bookkeeping forms the foundation of sound business financial management. Without reliable financial records, business owners can’t make informed decisions, plan for growth, or meet tax obligations properly. Yet many entrepreneurs face a common dilemma when starting or growing their businesses: should they handle bookkeeping themselves or bring in professional help?
The choice between DIY bookkeeping and deciding to hire a bookkeeper affects more than just how financial records get maintained. It impacts how much time you spend on administrative tasks versus revenue-generating activities, the accuracy of your financial information, your ability to plan strategically, and even your stress levels during tax season.
Professional bookkeepers bring specialized knowledge that most business owners lack. They understand accounting principles, tax regulations, financial reporting standards, and industry-specific requirements. This expertise translates directly into more accurate financial records and fewer costly mistakes.
Common bookkeeping errors made by business owners include miscategorized expenses, forgotten transactions, improper handling of sales tax, incorrect payroll calculations, and failure to reconcile accounts regularly. These mistakes create problems ranging from inaccurate financial statements to tax penalties and audit triggers.
Time is perhaps the most compelling reason to hire a bookkeeper. Business owners who handle their own bookkeeping typically spend 5-10 hours weekly on financial record-keeping, sometimes more during busy periods or at month-end. Those hours could instead be spent on sales, customer service, product development, or strategic planning—activities that directly generate revenue and grow the business.
The time savings compound because professional bookkeepers work more efficiently than business owners attempting tasks they’re not trained for. What takes you several hours might take an experienced bookkeeper less than one hour because they know exactly what to do and have efficient processes.
Professional bookkeepers for hire use sophisticated accounting software and tools that small business owners might not know about or know how to use effectively. They understand which features provide the most value, how to set up systems properly, and how to generate reports that actually provide useful insights.
Many bookkeepers also have established processes for securely handling financial information, backing up data, and maintaining audit trails. These practices protect your financial records and ensure continuity even if unexpected problems occur.
Beyond just recording transactions, experienced bookkeepers provide valuable financial insights. They notice trends in your numbers, identify cost-saving opportunities, spot potential cash flow issues before they become crises, and provide information that supports better business decisions.
A good bookkeeper acts as an early warning system for financial problems and a resource for understanding what your numbers actually mean for your business. This advisory capacity adds significant value beyond simple transaction recording.
In financial advisory firms, the financial advisor assistant role takes on specialized responsibilities that directly support client service and advisory activities.
Financial advisors focus on strategy and client relationships, but planning requires extensive data gathering and analysis. A financial administrative assistant collects client financial information, prepares preliminary analyses, organizes client files, and updates financial plans with current data. This support allows advisors to spend more time on analysis and client interaction rather than administrative preparation.
Maintaining regular client contact strengthens relationships and ensures plan implementation. Financial advisor assistants schedule client meetings, send appointment reminders, follow up after meetings with action items, and respond to routine client inquiries.
They may prepare meeting materials, take notes during consultations, and coordinate implementation of advisor recommendations. This consistent communication keeps clients engaged and informed while freeing advisors to focus on complex planning issues.
Advisory practices involve substantial administrative work beyond direct client service. An assistant financial advisor manages correspondence, maintains CRM systems, processes paperwork for new accounts, coordinates with custodians and product providers, and ensures compliance with regulatory documentation requirements. This administrative support allows advisors to maintain larger client bases without sacrificing service quality
DIY bookkeeping does offer some advantages, particularly for very small businesses or solo entrepreneurs with simple finances. You save the cost of hiring help, maintain complete control over financial information, and gain intimate knowledge of every business transaction.
For businesses with minimal transactions, straightforward operations, and owners who genuinely enjoy financial work, DIY bookkeeping can work reasonably well. Some entrepreneurs find that maintaining their own books helps them stay closely connected to business finances and makes strategic planning feel more tangible.
However, DIY bookkeeping carries significant risks. Without proper training, business owners often don’t know what they don’t know. They might feel confident that their records are accurate when in fact they’re missing important transactions, categorizing items incorrectly, or failing to maintain proper documentation.
Tax compliance issues are particularly risky. Incorrect expense categorization, missed deductions, improper handling of assets, or failure to set aside adequate funds for tax obligations can result in penalties, interest charges, and cash flow crises when taxes come due.
DIY bookkeeping also creates problems if you eventually decide to hire a bookkeeper or seek financing. Cleaning up months or years of DIY records takes significant time and expense. Banks and investors reviewing poorly maintained books may question your business management capabilities or decline to provide funding.
DIY bookkeeping makes sense primarily for:
Even in these situations, having a professional bookkeeper review your work quarterly or annually can catch errors before they create serious problems.
Several signs clearly indicate you should hire a bookkeeper:
If you recognize multiple red flags, the question isn’t whether to hire a bookkeeper but rather how quickly you can find one.
Not every business needs full-time bookkeeping help. Many small businesses do well with part-time or monthly bookkeeping services where a professional spends a few hours each week or month on your books. This arrangement provides professional expertise at a lower cost than full-time help.
The decision to hire a remote bookkeeper has become increasingly popular because it offers flexibility and often reduces costs compared to hiring locally. Remote bookkeepers can work with clients anywhere, giving you access to qualified professionals regardless of your location.
When evaluating potential bookkeepers, prioritize these qualities:
Don’t choose based solely on price. The cheapest bookkeeper may not provide the quality or reliability you need, potentially costing more in the long run through errors or inadequate service.
You have several options when deciding to hire a bookkeeper:
The option to hire a remote bookkeeper has expanded choices significantly, allowing businesses to find qualified professionals without geographic limitations.
Knowing how to hire a bookkeeper makes the process more efficient and increases the likelihood of finding good matches:
Start with a trial period: Begin with a month or quarter trial to ensure the working relationship functions well before committing long-term.
Bookkeeper costs vary widely based on location, experience, business complexity, and service level. Freelance bookkeepers typically charge $30-$90 per hour. Monthly bookkeeping services for small businesses commonly range from $300-$2,000 monthly, depending on transaction volume and complexity.
While these costs seem significant, compare them against the value of your own time. If you spend 8 hours monthly on bookkeeping and your time is worth $50 per hour in revenue-generating activities, you’re effectively paying yourself $400 monthly for bookkeeping. Hiring a professional for $400 monthly frees that time for more valuable work.
DIY bookkeeping carries hidden costs beyond your time:
These hidden costs often exceed what you would pay to hire a bookkeeper for professional service.
The decision to hire a bookkeeper represents an investment in your business’s financial health and your own peace of mind. While DIY bookkeeping can work temporarily for very small operations, most growing businesses benefit significantly from professional bookkeeping help.
Professional bookkeepers provide expertise that prevents costly errors, save you valuable time for revenue-generating activities, offer insights that improve business decisions, and maintain records that satisfy tax authorities and potential lenders. The cost of hiring help is typically far less than the combined cost of your time, stress, and potential errors from DIY approaches.
About the Author
With a deep understanding of what companies need to build top-performing remote teams and fully remote departments, his journey with Uptalent has been dedicated to creating exceptional remote work solutions and helping companies thrive with top-tier remote talent.
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