Steve had no idea his business was in trouble. His construction company was booming, clients were happy, and work was steady. But behind the scenes, something was off—his books weren’t right. He had unknowingly missed payroll tax payments, and now he owed the IRS $30,000. A mistake like this could ruin his business.
Steve’s mistake is more common than you’d think. Many business owners unknowingly put themselves at financial risk by neglecting their books.
Could Your “Messy Books” Be Costing You?
Could you, within $10, say how much your business has spent on labor, supplies, or software this year? If not, you’re not alone. Many small business owners avoid bookkeeping—until tax time hits, cash flow dries up, or a loan application gets denied. The good news? Taking control of your books now can save you time, stress, and thousands of dollars.
With accurate bookkeeping, you can:
- Access financial information year-round—not just when taxes are due.
- Simplify tax prep and cut costs by avoiding the last-minute scramble.
- Identify wasteful spending—like realizing you’ve spent $2,000 on website maintenance when a better option exists.
- Be loan-ready at any time—skip the 5-day scramble and get pre-approved in minutes.
What are “Books” and Why Do They Matter?
Bookkeeping: The process of recording financial transactions and keeping financial records.” – NYS Society of CPAs, Glossary
Bookkeeping is the activity of tracking your income and expenses so that you have full insight into the financial health of your business. This insight helps you, the business owner
- File taxes on time and avoid costly penalties
- Track where money is being spent to identify savings opportunities
- Prepare financial reports for loans, credit applications, or investors
- Know how much is owed to you and what you own
- Understand how much money is coming in and going out now—and what’s expected in the future so you can plan for big ticket items
Fred just started an IT consulting firm. His bookkeeping method? Checking his bank statement. While that might seem simple enough now, it won’t help him track income vs. expenses or prepare for tax season—meaning he could face penalties or missed deductions.
Do You Need a Bookkeeper?
Do you think that DIY bookkeeping will save you money? It could actually cost you thousands if you are not prepared.
All small businesses need “books” but not all need a bookkeeper. Some business owners may be well armed and have time to do this independently, while some businesses may have dedicated staff, for those in the middle hiring a bookkeeping service may be the right answer. We’ll dig into what each of these options looks like in a bit more detail.
Some business owners assume they can handle their books—until tax season hits. Take Mary, for example. With transactions across three accounts, she spends a full month each year sorting expenses for her CPA. That’s a full month of lost productivity. With ongoing bookkeeping, she could save both time and stress.
Do It Yourself (DIY) Bookkeeping
Two things determine if this is a good option for your small business.
- Time! Do you have the time to dedicate yourself to managing your books day to day, week to week, or month to month? The answer to this question will largely depend on how many accounts you have and the number of transactions that are processed each month.
- Knack for numbers. Do you feel comfortable tracking expenses and categorizing transactions? If you’re someone who naturally stays on top of household finances, balances a checkbook (or used to!), or enjoys budgeting, you may be well-suited to handle your own bookkeeping.
If you meet these two criteria, congratulations, you probably don’t need a bookkeeper. However, great accounting software will be your best friend to keep things simple. Software like Intuit’s QuickBooks captures transactions directly from your financial accounts. With a little training and some dedication, you can have a full set of financial books that meet all your business’ needs. You’ll be able to turn these over to your tax professional ready to go, reducing the time it takes them to complete their job and save you money.
Hiring Staff
Another option is to hire staff to support your bookkeeping and accounting functions. This may be a full-time bookkeeper or accountant if your business is big enough and has a lot of accounts and transactions. Or it could be a part-time job, either a part-time staff person or a split job such as an office manager who spends 50% of their time on the books. I have done both these jobs myself. I’ve been an office manager for a carpet cleaning business and for a road construction company where keeping the books was a significant part of my job. I also was the full-time regional accountant for 7 franchise hotel properties across three states. While hiring will cost you less per hour than hiring a bookkeeping service, it will require full staff salary and benefits to avoid expensive attrition and the lost knowledge that accompanies that. I provide these examples so you can gauge where your business fits on the spectrum.
Hiring a Bookkeeping Service
For small businesses without the time or need for an in-house bookkeeper, partnering with a professional bookkeeping service provides expert support without the overhead of a full-time hire. By hiring a bookkeeping service, you’ll get the professional expertise you need to quickly and effectively manage your books. The cost per hour will be higher, but the total hours needed will be lower, and the efficiency of expert support will save you money in the long run.
“On average, businesses in the US outsource bookkeeping services at a range of $500 to $2,500 per month, depending on the complexity of their financial activities, amount of transactions to be managed, and if payroll and taxation are included.” How much does bookkeeping cost in 2025?
Hiring a bookkeeping service can also save you money on your accounting software. For example, Beyond Aligned Books can offer QuickBooks Online to our customers at 30% off the listed rate. Another major benefit of hiring a service is that a professional bookkeeper will take your books to the next level. Beyond simply categorizing and reconciling transactions to create your financial reports, they’ll ensure accuracy by making necessary adjustments—like recording depreciation (to reflect the current value of your assets) and maximizing deductions, such as for your home office.
How Will You Approach Your Bookkeeping Needs?
Keeping accurate books isn’t just about organization—it gives you a clear picture of your business’s financial health and ensures you’re prepared for taxes, payroll, and growth opportunities. Many businesses find that hiring a bookkeeping service saves time, reduces costs, and improves accuracy without the overhead of a full-time hire.
Whatever you decide today, remember that your needs may evolve—and that’s okay! The key is to choose a system that works for you now while keeping future flexibility in mind. Just be aware that fixing messy books later can be costly in both time and penalties. A little planning today can save you thousands down the road.
See our related post, Hiring a Bookkeeper? Here’s How to Spot the Qualified from the Clueless.
Need expert bookkeeping support? Let’s find the right solution for your business. Fill out the form below for a free consultation.
This posts contains affiliate links.