Should I Hire a Bookkeeper or Do It Myself? A Decision Framework

“Should I hire a bookkeeper or just do it myself?”

I hear this question constantly from small business owners. The answer isn’t always obvious, and getting it wrong costs you either money (hiring too soon) or time and accuracy (DIY too long).

In this guide, I’ll give you a practical framework to make this decision confidently.

The Real Cost of DIY Bookkeeping

Before deciding, you need to understand what doing your own bookkeeping actually costs.

Time Cost

Most business owners underestimate how much time bookkeeping takes:

Activity	Monthly Time
Recording transactions	2-4 hours
Categorizing and organizing	1-2 hours
Bank reconciliation	1-2 hours
Invoice and follow-up	1-3 hours
Hunting for receipts	1-2 hours
Reports and review	1 hour
Total	7-14 hours/month

That’s nearly half a work week, every month, forever.

Opportunity Cost

What else could you do with those hours?

If your time generates $100/hour in revenue (sales calls, client work, product development), 10 hours of bookkeeping costs you $1,000 in lost opportunity—every month.

Even if your revenue-generating rate is $50/hour, that’s $500/month in opportunity cost.

Stress Cost

DIY bookkeeping carries mental weight:

Guilt when you fall behind
Anxiety about accuracy
Dread at tax season
Uncertainty about your numbers

This isn’t easily quantified, but it’s real.

Error Cost

Mistakes in bookkeeping have real consequences:

Missed tax deductions
Overpaid expenses
Cash flow miscalculations
IRS penalties
Bad business decisions based on bad data

One significant error can cost more than a year of professional bookkeeping.

The Real Cost of Hiring

Now let’s look at what professional bookkeeping actually costs:

Direct Cost

Outsourced bookkeeping for a typical small business: $300-$800/month

That might seem like a lot, but compare it to:

A part-time employee: $1,500-$2,500/month (plus benefits, taxes)
A full-time employee: $3,000-$5,000/month (plus benefits, taxes)
Your opportunity cost: Potentially $500-$1,500/month

What You Get

For that monthly fee, you typically receive:

All transactions recorded and categorized
Monthly reconciliation of all accounts
Regular financial reports
Year-end tax prep
Someone who answers your financial questions
Expertise from seeing many businesses

The Value Add

A good bookkeeper often pays for themselves through:

Catching all legitimate deductions
Preventing costly errors
Saving your time for revenue work
Providing insights that improve decisions

The Decision Framework

Use this framework to make your choice:

Factor 1: Transaction Volume

How many transactions does your business have monthly?

Volume	DIY Viability
Under 30 transactions	DIY is reasonable
30-100 transactions	DIY is challenging
Over 100 transactions	Strongly consider hiring

More transactions mean more time, more complexity, and more room for error.

Factor 2: Business Complexity

Simple businesses are easier to DIY:

Simple (easier to DIY):

Single revenue stream
Few expense categories
No inventory
No employees
Cash basis accounting
One bank account, one credit card

Complex (harder to DIY):

Multiple revenue streams
Many expense categories
Inventory management
Employees and payroll
Accrual accounting
Multiple accounts and cards
Job costing or project tracking

The more complex your business, the more value a professional adds.

Factor 3: Your Bookkeeping Skill Level

Be honest with yourself:

Can DIY effectively:

Understands debits and credits
Has used accounting software extensively
Can reconcile accounts without help
Knows the difference between an expense and an asset
Understands accrual vs. cash accounting

Should probably hire:

Learned QuickBooks from YouTube
Frequently asks “is this a deductible expense?”
Books don’t reconcile and you’re not sure why
Dreads looking at financial reports
Previous CPA has complained about your records

There’s no shame in not having bookkeeping skills—it’s a specialized knowledge area.

Factor 4: Your Time Value

Calculate your hourly rate:

What’s your target annual income from the business? (e.g., $100,000)
Divide by 2,000 (approximate work hours per year) = hourly rate (e.g., $50/hour)

Now compare:

Bookkeeping takes you 10 hours/month = $500 of your time
Professional bookkeeper costs $400/month

If professional cost is less than your time cost, hiring makes sense mathematically.

Even if the numbers are close, consider: Are those 10 hours your best use of time?

Factor 5: Current State of Your Books

Where are you right now?

Current and accurate: DIY is working (for now) Somewhat behind: Yellow flag—you’re starting to struggle Significantly behind: Hire someone immediately Complete mess: You need professional cleanup before anything else

Falling behind is the clearest sign that DIY isn’t sustainable.

Factor 6: Growth Trajectory

Where is your business headed?

Stable/declining: May not need to change approach Growing moderately: Bookkeeping needs will increase Growing rapidly: Systems will break without help

Growth amplifies bookkeeping complexity. If you’re barely keeping up now, growth will push you underwater.

Self-Assessment Quiz

Score yourself honestly:

Question	Yes	No
I spend less than 3 hours/month on bookkeeping	+1	-1
My books reconcile every month without issues	+1	-1
I understand all my financial reports	+1	-1
I actually enjoy bookkeeping	+1	-1
My CPA praises my records	+1	-1
I have fewer than 50 transactions/month	+1	-1
My business is simple (no inventory, no employees)	+1	-1
My books are completely current right now	+1	-1
I’m confident I’m capturing all deductions	+1	-1
Bookkeeping doesn’t stress me out	+1	-1

Scoring:

7-10 points: DIY is likely working for you
3-6 points: You’re in a gray zone—watch for signs of struggle
0-2 points: You should seriously consider hiring
Negative: Hire a bookkeeper. Yesterday.

When to Definitely Hire

Regardless of your score, hire a bookkeeper if:

1. You’re More Than One Month Behind

If your books are consistently behind, that’s a clear signal. The gap will only grow.

2. Tax Season Is Painful

If you dread tax time, scramble for documents, or pay high fees for CPA cleanup work, hiring a bookkeeper will pay for itself in reduced tax prep costs and stress.

3. You Don’t Trust Your Numbers

If you look at your profit and think “that can’t be right,” your books aren’t serving their purpose. You need someone who can make them accurate.

4. You’re Making Decisions Without Data

If you’re guessing about profitability, pricing, or affordability instead of knowing, you need better financial information.

5. Cash Flow Is a Constant Surprise

If you’re regularly surprised by your bank balance, you need better tracking and forecasting than you’re providing yourself.

6. You’re Avoiding Looking

If opening QuickBooks fills you with dread, something is wrong. Either the software is a mess, or you’ve internalized that looking means dealing with problems you don’t know how to solve.

When You Might Continue DIY

DIY bookkeeping can work if:

You’re Just Starting Out

In the first few months of business, you have few transactions and need to learn where your money goes. DIY builds understanding.

But: Have an exit plan. Know at what point you’ll transition to professional help.

Your Business Is Genuinely Simple

A solo consultant with one client, one bank account, and 20 transactions per month can probably handle their own books indefinitely.

But: If you grow beyond this simplicity, be ready to transition.

You Have Accounting Background

If you’re a trained bookkeeper or accountant doing your own books, you can likely do it better than someone else anyway.

But: Your time may still be worth more doing other things.

You Actually Enjoy It

Some people genuinely like the orderliness of bookkeeping. If that’s you, and you’re good at it, carry on.

But: Be honest about whether “enjoy” means you do it, or means you like the idea of doing it while it actually piles up.

The Hybrid Approach

You don’t have to choose all-or-nothing. Consider hybrid approaches:

Option 1: DIY with Periodic Review

You do daily/weekly bookkeeping. A professional does monthly or quarterly review, catching errors and providing guidance.

Good for: People who want to stay close to their numbers but need a safety net.

Option 2: Outsource Core, Keep Specialized

You handle specialized tasks (job costing, project billing) while outsourcing core bookkeeping (transactions, reconciliation).

Good for: Businesses with unique tracking needs that require owner knowledge.

Option 3: Catch-Up + DIY

Hire a professional to clean up your books and establish systems, then maintain them yourself going forward.

Good for: People who got behind but are capable of staying current once started fresh.

Option 4: Graduated Transition

Start with minimal outsourced services, add more as your business grows.

Good for: Budget-conscious businesses that expect growth.

Making the Transition

If you’ve decided to hire, here’s how to transition smoothly:

Step 1: Document Your Current State

Screenshot or export your current books
Note any known issues or questions
List accounts, software, and systems you use

Step 2: Choose Your Provider

Get quotes from 2-3 providers
Ask about their experience with your industry
Check references
Understand exactly what’s included

Step 3: Clean Up First (If Needed)

If your books are a mess, many providers offer cleanup services. Get current before starting ongoing service.

Step 4: Onboard Properly

Grant necessary software access
Provide bank and credit card login details securely
Share any unique business context they need
Establish communication expectations

Step 5: Stay Engaged

Outsourcing doesn’t mean abdication:

Review reports they send
Ask questions when you don’t understand
Provide receipts and documentation promptly
Communicate about business changes

Questions to Ask Yourself

Still deciding? Sit with these questions:

If I’m honest, are my books accurate and current?
What would I do with an extra 10 hours per month?
What’s the worst that could happen if my books are wrong?
Am I avoiding bookkeeping? Why?
What’s preventing me from hiring help? (Money? Control? Pride?)
If I had a bookkeeper, would I sleep better?

Sometimes the answers are more revealing than any framework.

The Bottom Line

Here’s my honest take:

Most small business owners should hire a bookkeeper sooner than they think. The cost is usually lower than the time value saved, the expertise adds real value, and the stress reduction is significant.

But “most” doesn’t mean “all.” If your books are genuinely simple, you have the skills, you enjoy the work, and you’re staying current—DIY can work.

The wrong choice is continuing DIY when it’s clearly not working, rationalizing that you’ll “catch up soon” when you never do, and letting your financial clarity suffer as a result.

Be honest about where you actually are. Then choose accordingly.

Ready to get help with your bookkeeping? At Profit Path Books, we help Utah small business owners get their books in order—whether that’s a one-time cleanup or ongoing monthly service. Book a consultation to talk about your situation, or take our assessment to see where you stand.