Plenty of small business owners start out doing their own books in QuickBooks, and for many of them it works well. Others find that the software is easy but the bookkeeping is not. There's no single right answer, so here is a practical way to decide what makes sense for you.
When doing it yourself works
DIY bookkeeping is often a good fit in these situations.
- You have a modest number of transactions each month.
- You use 1 bank account and 1 credit card, only for business.
- You're comfortable with software and understand basics like income, expenses and owner draws.
- You have time set aside each week, and you actually use it.
- You reconcile your accounts every month without dreading it.
If that sounds like you, keep going. Just make sure the file is set up correctly from the start, because a messy chart of accounts creates problems that grow over time.
Signs it's time to get help
Day-to-day warning signs
- You're more than 1 or 2 months behind on reconciling.
- Personal and business spending run through the same accounts.
- The pile of uncategorized transactions keeps growing.
- You aren't sure your reports are right, so you don't use them.
Bigger moments that call for clean books
- Tax season brings late nights and a scramble for missing paperwork.
- You're applying for a loan or line of credit and need reliable financial statements.
- You've added employees, payroll or sales tax and want to be sure it's recorded correctly.
The hybrid approach
You don't have to choose all or nothing. Many owners do well with a middle path.
- Have a professional set up QuickBooks or clean up your existing file so the foundation is solid.
- Get hands-on training for the tasks you'll handle, such as entering bills and categorizing transactions.
- Keep doing the day-to-day work, with a monthly or quarterly review to catch errors before they spread.
This keeps you close to your numbers while adding a safety net. If the business grows, it's easy to hand off more later. Our QuickBooks setup, clean-up and training services are built for both DIY owners and those ready to hand off the work, and well-kept books make tax preparation far simpler.
Here is a quick test. Estimate how many hours a month you spend on the books, including fixing mistakes, and what those hours are worth to your business and your family.
This article is general information, and the right choice depends on your business, your comfort with numbers and your schedule. If you're in Palos Heights or elsewhere in the southwest suburbs and want an honest opinion, schedule a free initial consultation by calling or texting (708) 232-3003.
