Should you handle your own books or hire a pro? Here’s the ultimate guide.
Hiring a professional bookkeeper offers peace of mind. Professionals have the skills to handle your books efficiently and are trained to catch the details you may overlook. I’ve seen firsthand how easily these details can be missed, even by the most organized business owners – it’s just a LOT to juggle. We help you avoid costly errors and stay prepared for tax season.
The downside? There’s a cost. Hiring a professional is an investment, and an especially important one if you’re just starting out, to get your accounting system set up properly. Usually, the time and potential savings often outweigh the fees, especially if we can help you reclaim your precious time down the road and save you from penalties or missed deductions.
Pros:
- Expertise reduces errors and improves financial accuracy
- Frees up your time to focus on growth and operations and do the things you love
- With cloud accounting you have instant access at your fingertips anywhere, any time
- You can easily check your financial status and can even view your bookkeeper’s work
- Come tax time, as long as you’ve given your bookkeeper all the documentation requested, you’ll be sailing through tax season, with fully prepared records
- It’s one of those investments that often pays off in saved time, fewer headaches, and cleaner books as you grow. You’re not just hiring a service – you’re gaining peace of mind and a better foundation for your future.
Cons:
- Yup, it’s going to cost you money
- Less immediate control over daily details
Hybrid Approach: Combining DIY and Professional Support
Ever wish you had a second set of eyes on your books without completely handing everything over to someone else? If you like being involved but also want professional oversight, a hybrid model may work for you. You handle the daily transactions, because you know best what’s going on in your business. Your bookkeeper then reviews your work periodically, corrects errors, reconciles accounts, and can be available to discuss your business and offer suggestions. This setup lets you keep control but adds an expert’s touch to catch mistakes and make tax season easier.
Pros:
- Balanced control with professional guidance
- Fewer errors, especially on complex entries or adjustments
- Cost-effective compared to full outsourcing
- Great option for those who are just starting out
Cons:
- Requires good communication and clear roles – this is crucial!
- Possible missed details if records aren’t reviewed frequently
Caution:
Now here’s the catch in a hybrid approach: Communication isn’t just nice – it’s essential! Some small business owners like to take this hybrid approach, thinking it will save them money. Please heed my words: it will only be successful when you work closely with your bookkeeper and provide all data, documentation, and answer questions in a timely manner. If you delay on your end, the books will be in “catch-up” or ‘clean-up” mode, which will end up be an additional service charge.
Therefore, you must be diligent in setting up routine meetings, and open about what’s happening in your business. It helps if you can find a bookkeeper who fits not only your business needs but is also someone you enjoy working with because you’ll be in discussions with them a lot.
I find this hybrid approach is especially successful with FreshBooks Accounting app for service-based small business owners, freelancers, and side hustlers. It’s built just for this type of collaboration with easy project management, time, and expense tracking, simple invoicing, so nothing slips through the cracks. I’ve found working with the FreshBooks support team has been great, which is why I’ve invested the time to become a Certified FreshBooks Accounting Partner.
Tax Time: Reducing Stress with the Right Choice
Tax season can be a nightmare when records aren’t well-kept. Choosing an approach that ensures your finances are accurate and up-to-date can reduce this stress and helps you sleep better. Working with a professional, whether fully outsourced or hybrid, means no last-minute scrambles and no missed deductions. You’ll know you’re ready to file, and the stress of taxes won’t be weighing you down. One of my clients told me they are so excited because this is actually the first year in all the year they’ve been doing business that they’ll be completely ready to file their taxes on time!
Making Your Decision
Your business’s bookkeeping approach should align with your needs, budget, and comfort level. DIY can work for early-stage or very small businesses once you’ve gotten professional help to set up your app. But as your business grows, outsourcing or a hybrid model may save you time and reduce stress.
Curious to see how I might be able to lighten your load? Click that pink button and let’s talk.
