Should my business hire a bookkeeper? Answering a key question for business owners

As a business owner, managing your finances is one of the most critical—and often time-consuming—parts of running your business. For many, the question arises: Should I hire a bookkeeper, or can I handle this myself?

Hiring a bookkeeper can provide clarity, save time, and ensure accuracy, but it also comes with costs and requires trust. In this article, we’ll weigh the pros and cons to help you decide if a bookkeeper is the right investment for your business.

What Does a Bookkeeper Do?

A bookkeeper is responsible for:

1. Recording Transactions: Ensuring every financial transaction is categorized and logged into your general ledger.
2. Managing Accounts Receivable and Payable: Tracking who owes you money and what bills you need to pay.
3. Reconciling Accounts: Matching financial records with bank statements to catch errors or discrepancies.
4. Preparing Financial Reports: Generating Profit & Loss Statements, Balance Sheets, and Cash Flow Statements.
5. Maintaining Compliance: Ensuring accurate records for tax reporting and audits.

They’re the backbone of an organized financial system, especially if you’re moving to accrual-based accounting.

Reasons to Hire a Bookkeeper

1. Save Time

Running a business means wearing many hats—sales, operations, marketing, and more. Managing your books on top of everything else can be overwhelming.

Why Hire:

• A bookkeeper frees up hours each week so you can focus on growing your business.
• They can handle routine tasks like recording transactions, reconciling accounts, and managing invoices.

2. Improve Accuracy

Bookkeeping mistakes can be costly—misclassified expenses, missed invoices, or unrecorded revenue can skew your financial picture.

Why Hire:

• Bookkeepers have the expertise to minimize errors and ensure your records are accurate.
• They understand how to structure accounts to reflect your business performance correctly.

3. Support Financial Growth

As your business scales, so does the complexity of your finances. Managing multiple clients, vendors, and accounts becomes challenging.

Why Hire:

• A bookkeeper keeps your general ledger clean and organized, making it easier to generate financial reports.
• They ensure your records can handle growth, including tax preparation and investor reporting.

4. Implement Accrual-Based Accounting

Switching from cash-based to accrual-based accounting can feel daunting, but it’s essential for businesses looking for long-term financial clarity.

Why Hire:

• Bookkeepers are trained in accrual accounting and can help set up systems to track AR (Accounts Receivable) and AP (Accounts Payable).
• They’ll ensure your revenues and expenses align in the correct periods.

5. Prepare for Taxes and Audits

Messy or incomplete financial records can lead to stressful tax seasons—or worse, trouble during an audit.

Why Hire:

• A bookkeeper keeps everything organized and compliant year-round, reducing the risk of surprises at tax time.

Reasons NOT to Hire a Bookkeeper

1. Cost

Hiring a bookkeeper is an investment, and for small businesses, this may feel like an unnecessary expense.

Why Not Hire:

• If your finances are straightforward (e.g., few transactions, minimal complexity), bookkeeping software like QuickBooks or Wave may be sufficient.
• You can save money by doing the work yourself if you have the time and discipline.

However, its important to note that with freelance websites and access to global talent the cost of hiring a bookkeeper has went down significantly. Companies like WeHire can find you vetted bookkeepers from different parts of the world.

2. You’re Comfortable Handling Your Books

Some business owners enjoy managing their own books and feel confident in their abilities.

Why Not Hire:

• If you understand double-entry accounting, accrual-based systems, and reconciliation, you might not need a bookkeeper.
• Online tools can guide you, and some software even automates tasks like categorizing transactions.

3. Limited Financial Activity

If you’re a solopreneur with minimal revenue or expenses, hiring a bookkeeper might not make sense just yet.

Why Not Hire:

• For businesses with only a handful of monthly transactions, the time commitment is low, and the complexity is manageable.
• At this stage, it might be more cost-effective to handle the books yourself or hire someone part-time using freelance websites like mentioned before.

Conclusion: Is a Bookkeeper Right for You?

Hiring a bookkeeper can feel like a big step, but for many businesses, it’s a necessary one. If your finances are getting more complex, or you’re spending too much time on your books, a bookkeeper can bring peace of mind, accuracy, and efficiency. However, if your financial activity is minimal and you’re comfortable managing it yourself, you might not need one just yet.

Ultimately, the decision depends on your business’s stage, budget, and financial goals. As your business grows, having a reliable bookkeeper could be one of the smartest investments you make.