The Real Cost of DIY Bookkeeping (and When to Get Help)

Starting a business is exciting but also daunting. Especially if you’ve come from steady employment and now find yourself juggling everything, including the books. If your budget is tight, then costs need to be saved to boost profitability in the beginning. There is so much to consider that many choose to manage their own bookkeeping.

After all, how hard can it be?

When saving money costs you time

Whilst this can indeed save money, and it may feel like you have more control over what's going on, as the business starts to grow, just this alone can ultimately cost more than you think. Time, stress, and sometimes even money.

Without the right systems, bookkeeping can eat into evenings and weekends. Time you should be spending on your business or yourself, especially if you’re further cutting costs by not utilising accounting software and sticking to spreadsheets, or even paper records, to save on costs. Even with software such as Xero or QuickBooks, if you try to learn all this while also growing your business, it can stretch your mental bandwidth to near breaking point. Imagine spending hours trying to get the figures on a spreadsheet to balance, only to find out that there was a mistake in a formula that you hadn’t noticed. Or that you couldn’t understand why your VAT bill was so high, only to realise weeks later that the VAT in your accounting software was set up wrong, and now you need to make an adjustment on your next return. Both are real problems that business owners have come to me with over the years. The hours lost fixing these issues can never be reclaimed, time that could’ve been spent on something else that could’ve made a real difference to your business, or even your home life. Time has value, especially your own. And it’s not just time that gets lost, mistakes can quietly pile up too.

If you’re using spreadsheets, try blocking out 30 minutes each week to stay on top of things. It’s a small habit that can save hours later on.

Hidden costs you don’t see until year end

Errors can be easy to make without training. Most errors I see are not recognised as errors, until your accountant reviews the books at the year end and corrects any mis categorisations (that you had no idea were incorrect), or just completely disregards them, leaving you with a much bigger tax bill than you were expecting based on what your accounting software suggested based on the figures you had entered. If you’re not keeping up to date with ever-changing legislation, this can also lead to unexpected surprises come year end. Mistakes are never intentional, but they can still be costly, financially and emotionally.

The missed opportunities in your numbers

When bookkeeping is rushed or treated as something to “just get out of the way so it’s done”, you lose the chance to learn from your numbers. Someone who knows how to manage the numbers can turn that data into valuable insights and opportunities, spot any early warning signs, and help you make smarter decisions. But when you’re short on time, headspace, or experience, those insights often go unnoticed. This is where business owners often miss out: that’s why I put together a free guide, which is full of practical tips to help you stay on top of your finances without the stress. You can access it for free here.

When it’s time to get help

Self-managed bookkeeping can feel empowering in the beginning, even a fun challenge before it becomes complex, but this feeling can begin to wane if numbers aren’t something you’re naturally drawn to. It’s easy to get behind with bookkeeping, especially if it becomes something you begin to put off, even start to dread. The initial cost saving can soon disappear once your accountant charges a higher fee due to the extra “clean up work” they have to do before they can finalise the year end accounts. If you ever don’t feel confident about your financial position, or even lie awake at night, stressed about if there’ll be enough money to cover payroll every week, doing it all yourself can soon lose its appeal, and can start to feel more like a burden than a benefit. Seeking advice from a professional can sometimes be enough to ease the burden, or just outsourcing one part (such as payroll), can be enough to bring some peace of mind. Outsourcing doesn’t mean that you have to lose control; it means gaining clarity so you can make confident decisions, not just compliant ones.

Doing your own bookkeeping isn’t wrong, but it’s not always the best (or most profitable) use of your time. If it’s starting to feel like a burden, maybe it’s time to rethink how you’re doing it. And if you’re curious about what other business owners often get wrong in the beginning (and how to avoid them), you’ll find practical tips in the free guide.

If you’ve been feeling that your bookkeeping is taking over, or you’d just like to understand your options, or if you’re curious about what support might look like, we’re always happy to talk.

Getting help or advice doesn’t mean that you’re failing; it means that your business is growing, and that’s always a good thing and something to be proud of.