DIY Bookkeeping: When It Works, When It Doesn’t
Keeping track of your finances is a non-negotiable part of running a successful business. But does that mean you need to outsource bookkeeping right away? Not always. In fact, DIY bookkeeping can work quite well—under the right circumstances. However, there comes a point when it can cause more harm than good.
In this post, we’ll break down when DIY bookkeeping makes sense, and when it’s time to hand it off to a professional.
✅ When DIY Bookkeeping Works
1. Your Business Is Small and Simple
If you’re a freelancer, solopreneur, or just starting out with minimal transactions each month, managing your own books might be entirely manageable.
Example: A graphic designer with five clients and ten invoices a month can likely keep accurate records using tools like Wave, QuickBooks Simple Start, or even a spreadsheet.
2. You’re Comfortable With Numbers
If you're organized, detail-oriented, and understand basic accounting concepts, DIY bookkeeping may save you money and help you stay closely connected to your finances.
3. You Use Bookkeeping Software
Modern bookkeeping tools automate a lot of the heavy lifting—like bank feeds, invoice tracking, and basic reporting. If you’re committed to using them consistently, they can make DIY doable.
4. You’re Just Tracking Income and Expenses
If you're on a cash basis and only need to track income and expenses (vs. inventory, payroll, or accruals), your bookkeeping tasks are relatively straightforward.
🚩 When DIY Bookkeeping Doesn’t Work
1. You’re Too Busy to Keep Up
Once your time is better spent growing the business or serving clients, bookkeeping often becomes a burden—or gets neglected entirely.
Missed reconciliations, late invoices, or untracked expenses can cost you more than a bookkeeper would.
2. Your Transactions Are Complex
Multiple revenue streams, employees, international sales, inventory, or sales tax? These add complexity fast. DIY systems can break under that weight.
3. You're Making Mistakes
If your reports don’t match your bank balances, you're unsure about categorizing expenses, or you’re behind on reconciliations, it’s time for help.
4. You Dread Tax Season
If you find yourself scrambling every April (or overpaying your CPA to clean up your books), that’s a clear sign DIY isn't working anymore.
5. You Want to Scale
Growth requires accurate, timely financial data. Lenders, investors, and advisors all need clean books to help you move forward.
A Hybrid Approach: Best of Both Worlds?
If you’re not ready for a full-service bookkeeper, consider outsourcing monthly reviews or quarterly check-ins. Some small business owners keep day-to-day records themselves, then have a pro clean things up before taxes.
Final Thoughts
DIY bookkeeping can work beautifully—for a while. But as your business grows, complexity increases, and your time becomes more valuable, don’t hesitate to delegate. Clean books are more than a tax-time chore—they’re the foundation of smart business decisions.
Not sure if it’s time to hire help? Start by reviewing how much time you spend on bookkeeping and whether your records are accurate. That answer usually tells you all you need to know.
At MakeCentsBookkeepingllc we can categorize your transactions, reconcile your business accounts, and provide your business financial statements.
