The Real Cost of DIY Bookkeeping for Small Business Owners
DIY bookkeeping seems like a great way to cut costs-until it starts costing you time, accuracy, and tax penalties. Many small business owners try to manage their books alone, only to find out later how expensive “free” really is.
Download Our Free Brochure →This blog breaks down the true cost of doing your own books-and when it makes sense to bring in professional help.
What DIY Bookkeeping Involves
If you’re doing your own bookkeeping, you’re likely handling:
- Categorizing every expense
- Reconciling bank and credit card accounts
- Logging income and vendor payments
- Generating financial reports
- Keeping up with tax deadlines and filings
That’s several hours a month-minimum. And it assumes you know exactly what you’re doing.
The Hidden Costs of DIY Bookkeeping
- Time Lost
Spending 5-10 hours a month on books means time not spent growing your business. - Tax Filing Errors
Incorrect or incomplete records can result in missed deductions, higher tax bills, or IRS penalties. - Missed Red Flags
Without professional oversight, you might overlook cash flow issues, overcharges, or vendor mistakes. - Inconsistent Books
If you don’t reconcile regularly, your data gets messy-and takes even longer to fix later. - Cleanup Fees
Many businesses that DIY eventually have to pay for bookkeeping catch-up or cleanup before tax season.
Real Example
A retail business owner kept up with her books manually using spreadsheets. When it came time to file taxes, her CPA discovered over $25,000 in miscategorized expenses and a $3,200 overpayment to a vendor. The result: she paid more in taxes and still had to pay $800 for cleanup.
When It’s Time to Stop Doing It Yourself
Here are clear signs it’s time to outsource:
- You’re behind on reconciliations or reports
- You’re unsure about tax prep or compliance
- You’re scaling and can’t afford errors
- You want a clean monthly close with no guesswork
Outsourcing to a virtual bookkeeping firm like Remote Books Online is often less expensive than the hours you’re already spending-and far more accurate.
Don’t let bookkeeping mistakes cost you money. Remote Books Online provides professional bookkeeping starting at just $150/month. Get CPA-ready books without the stress.
FAQs
Is DIY bookkeeping really a bad idea for small businesses?
It depends. If you’re financially skilled and have time, it may work short-term. But most owners end up behind or making costly errors.
What’s the average time spent on DIY bookkeeping per month?
Most small business owners spend 5-10 hours per month. If you’re also behind, expect even more.
Can I outsource just part of the bookkeeping?
Yes. Many services offer partial support (like reconciliations only) or full-service bookkeeping.
Will outsourced bookkeepers fix my past mistakes?
Yes. Firms like Remote Books Online can clean up past months and maintain your books going forward.
Is outsourced bookkeeping worth the money?
For most small businesses, yes. It reduces risk, improves accuracy, and saves time you can reinvest elsewhere.
Looking for help closer to home? Explore our online bookkeeping services in Boston, MA for customized solutions backed by certified professionals.
