When you’re running a small business, every expense matters.

That can make DIY bookkeeping seem like an easy decision. If accounting software can automatically import transactions, categorize expenses, create invoices, and generate financial reports, why pay someone else to do it?

For some businesses, doing your own bookkeeping can absolutely make sense.

But bookkeeping is more than entering income and expenses into software. Your records need to be accurate, organized, reconciled, and detailed enough to support your tax and financial obligations. In Canada, the CRA requires businesses to maintain books, records, and supporting documents that contain enough information to determine their tax obligations and entitlements. Records generally need to be kept for six years.

So the real question isn’t:

“Can I do my own bookkeeping?”

You probably can.

The better question is:

“Is doing my own bookkeeping the best use of my time, and can I maintain accurate records as my business grows?”

DIY Bookkeeping vs Hiring a Bookkeeper

Here’s a quick comparison:

	DIY Bookkeeping	Hiring a Bookkeeper
Monthly cost	Lower	Higher
Time required from owner	Higher	Lower
Control over records	High	Shared
Professional oversight	Limited	Yes
Best for	Simple businesses	Growing or complex businesses
Scalability	Can become difficult	Easier to scale
Financial review	Owner-managed	Professional review
Cleanup assistance	Limited	Available
Ongoing support	Limited	Available

Neither option is automatically better.

The right choice depends on your business size, transaction volume, financial complexity, bookkeeping knowledge, and how much time you have available.

What Is DIY Bookkeeping?

DIY bookkeeping means the business owner handles their own day-to-day financial records rather than outsourcing the work to a bookkeeper.

This usually involves using accounting software such as QuickBooks Online to:

• Record income
• Categorize expenses
• Upload receipts
• Reconcile bank accounts
• Send invoices
• Track accounts receivable
• Track bills and accounts payable
• Monitor cash flow
• Generate financial reports
• Prepare records for tax filing

Modern accounting software can make many of these tasks considerably easier. QuickBooks, for example, can connect bank accounts, import transactions, track expenses, capture receipts, create invoices, and produce financial reports.

But software doesn’t eliminate the need for someone to make appropriate accounting decisions.

A transaction still needs to be categorized correctly. Accounts still need to be reconciled. Errors still need to be identified. And someone needs to understand whether the financial reports actually make sense.

When DIY Bookkeeping Makes Sense

DIY bookkeeping can be a reasonable option if your business is relatively simple.

You may be able to manage your own books if you:

• Are a freelancer or sole proprietor
• Have relatively few monthly transactions
• Have one or two bank accounts
• Don’t have employees
• Don’t manage inventory
• Have straightforward income and expenses
• Are comfortable using accounting software
• Have time to maintain your books regularly
• Understand the basics of your financial records

For example, imagine a freelance graphic designer who has 30–50 transactions each month, one business bank account, no employees, and relatively straightforward expenses.

That business may not need a bookkeeper every week.

With the right accounting software and a consistent process, the owner may be able to keep the books updated themselves and have an accountant review the records when necessary.

The Biggest Advantage of DIY Bookkeeping: Cost

The obvious benefit is money.

If you do the work yourself, you don’t have to pay someone else for the bookkeeping hours.

You may still have expenses for accounting software, receipt management, payroll software, or other tools, but those costs can be considerably lower than outsourcing the entire bookkeeping function.

For a new business with limited revenue, keeping expenses low can be important.

However, there’s one cost that is easy to overlook:

Your time.

If bookkeeping takes you five hours every month, those aren’t necessarily five free hours.

What could you have done with those five hours?

Could you have:

• Followed up with potential customers?
• Completed another client project?
• Improved your website?
• Generated new leads?
• Followed up on unpaid invoices?
• Worked on your marketing?
• Spent time with your team?

The financial cost of DIY bookkeeping isn’t just the software subscription.

It’s also the opportunity cost of the owner’s time.

What Does a Bookkeeper Actually Do?

A professional bookkeeper does more than simply enter transactions.

Depending on the arrangement, bookkeeping services can include:

• Recording and categorizing transactions
• Bank reconciliation
• Credit card reconciliation
• Accounts payable
• Accounts receivable
• Expense tracking
• Payroll bookkeeping
• GST/HST bookkeeping
• Month-end closing
• Financial statement preparation
• Catch-up bookkeeping
• Bookkeeping cleanup
• Maintaining organized financial records

A bookkeeper can also provide another layer of review.

That’s particularly valuable when a business owner is busy running the company and doesn’t have the time or expertise to investigate why the numbers don’t look right.

When Should You Hire a Bookkeeper?

There isn’t a specific revenue number at which every business should hire a bookkeeper.

A business making $100,000 a year might have very simple bookkeeping.

Another business making $100,000 might have hundreds of transactions, employees, inventory, multiple accounts, and complicated sales tax requirements.

Complexity matters more than revenue alone.

Here are some signs that it may be time to consider professional bookkeeping.

1. Your Books Are Falling Behind

If you keep telling yourself:

“I’ll update the books this weekend.”

And then three months pass, that’s a warning sign.

Bookkeeping becomes much harder when months of transactions accumulate.

Regular bookkeeping keeps financial information current and makes it easier to identify problems while they are still manageable.

2. You Don’t Know Your Numbers

If someone asks:

“How much did your business actually make last month?”

and you don’t know, your bookkeeping isn’t giving you much value.

Current financial records can help you understand revenue, expenses, profitability, cash flow, and outstanding receivables.

3. Your Business Has Become More Complicated

As a business grows, bookkeeping often becomes more complicated.

You might add:

• Employees
• Contractors
• More bank accounts
• Credit cards
• Loans
• Inventory
• Multiple revenue streams
• New provinces
• More customers
• More suppliers

At that point, the bookkeeping process that worked when you were a one-person business may no longer be sufficient.

4. GST/HST Is Becoming Difficult to Manage

GST/HST introduces additional recordkeeping requirements.

The CRA states that businesses must keep sales and purchase invoices and other records related to their GST/HST activities to support their returns and input tax credit claims.

If you’re unsure whether transactions are being recorded correctly or whether your records support your GST/HST reporting, professional bookkeeping can provide additional oversight.

5. You’re Spending Too Much Time on Bookkeeping

This is one of the simplest tests.

Ask yourself:

How many hours am I spending on bookkeeping every month?

Then ask:

Could those hours be spent generating revenue or running the business?

If bookkeeping regularly takes you away from higher-value work, outsourcing may make financial sense even if you technically have the ability to do it yourself.

DIY Bookkeeping vs Hiring a Bookkeeper: The Real Cost

Suppose a business owner spends six hours every month doing bookkeeping.

That’s 72 hours per year.

If that owner could use those hours to generate additional business, the value of DIY bookkeeping may be much higher than the software subscription alone suggests.

This doesn’t mean every business should immediately outsource.

It means you should compare:

Cost of professional bookkeeping

versus

Software + your time + potential errors + opportunity cost

That is a much more useful comparison than simply asking which option has the lower monthly price.

What About Accounting Software?

Accounting software has made DIY bookkeeping significantly more accessible.

Platforms such as QuickBooks can automate transaction imports, expense tracking, receipt capture, invoicing, reporting, and other routine tasks.

But automation isn’t the same as professional bookkeeping.

Think of accounting software as a tool.

A calculator can perform a calculation, but you still need to know which calculation to perform.

Similarly, accounting software can organize financial information, but someone still needs to ensure that the information is being recorded appropriately.

That person can be you.

Or it can be a bookkeeper.

Can You Do Your Own Bookkeeping and Still Hire a Bookkeeper?

Absolutely.

It doesn’t have to be an all-or-nothing decision.

Many businesses can use a hybrid approach.

For example, the owner might:

• Send invoices
• Upload receipts
• Track day-to-day expenses
• Keep business and personal spending separate

while a bookkeeper handles:

• Bank reconciliation
• Credit card reconciliation
• Month-end closing
• Accounts payable and receivable
• GST/HST bookkeeping
• Financial statements
• Cleanup and review

This can give the business owner control over the day-to-day information while reducing the amount of specialized accounting work they need to handle.

DIY Bookkeeping vs Hiring a Bookkeeper: Which Is Cheaper?

DIY bookkeeping is usually cheaper in terms of direct financial expense.

But that doesn’t necessarily mean it is cheaper overall.

Consider two scenarios.

Business A: Simple Freelance Business

A freelancer has:

• One bank account
• No employees
• Low transaction volume
• Straightforward expenses
• No inventory

They spend two hours per month maintaining their books.

DIY bookkeeping may be perfectly reasonable.

Business B: Growing Company

A growing company has:

• Multiple bank accounts
• Credit cards
• Employees
• Contractors
• Hundreds of transactions
• Accounts payable
• Accounts receivable
• GST/HST requirements

The owner spends 10–15 hours every month trying to keep the books updated.

At this stage, professional bookkeeping may provide significantly more value.

The question isn’t whether Business B can do its own bookkeeping.

The owner probably can.

The question is whether that’s where the owner’s time should be spent.

How Much Does Hiring a Bookkeeper Cost?

Bookkeeping prices in Canada vary depending on the business and the services required.

A very small business with straightforward books may only require a basic monthly bookkeeping arrangement, while businesses with higher transaction volumes, payroll, multiple accounts, inventory, or more extensive reporting needs can require significantly more support.

Bookkeepers may charge hourly rates, fixed monthly fees, or customized packages.

If you’re comparing bookkeeping providers, don’t compare only the monthly price.

Ask what you’re actually getting.

For example:

• How many transactions are included?
• Are bank reconciliations included?
• Are credit card reconciliations included?
• Are financial statements included?
• Is GST/HST bookkeeping included?
• Is payroll included?
• Are accounts payable and receivable included?
• Is cleanup included?
• Are there additional charges for extra work?

A $300 monthly service and a $900 monthly service may not be comparable if they provide completely different levels of support.

7 Questions to Ask Before Hiring a Bookkeeper

If you’ve decided to outsource your bookkeeping, ask these questions before choosing a provider.

1. What exactly is included?

Get the scope of work in writing.

2. How often will my books be updated?

Weekly, biweekly, and monthly bookkeeping can provide very different levels of visibility.

3. Who will handle my account?

Find out whether you’ll work directly with an experienced professional or primarily communicate through a larger support team.

4. What happens if my books need cleanup?

If your existing books are behind or contain errors, determine whether cleanup is included or charged separately.

5. Do you handle GST/HST bookkeeping?

If you’re registered for GST/HST, make sure the provider understands the recordkeeping involved.

6. Will I receive financial reports?

Ask which reports you’ll receive and how frequently.

7. Can the service grow with my business?

Your bookkeeping needs today may not be the same six or twelve months from now.

DIY Bookkeeping vs Hiring a Bookkeeper: Which One Is Right for You?

There’s no universal answer.

DIY bookkeeping may be right for you if:

• Your business is small and straightforward
• You have relatively few transactions
• You have plenty of time
• You understand basic bookkeeping
• Your financial records are easy to maintain
• You are comfortable using accounting software

Hiring a bookkeeper may be the better choice if:

• Your books are falling behind
• Your transaction volume is increasing
• You have employees or contractors
• You have multiple financial accounts
• You’re dealing with GST/HST
• You manage inventory
• You need regular financial reports
• You don’t understand your financial statements
• Bookkeeping is taking time away from running your business
• Your business is growing and becoming more complex

And there is a third option:

A combination of both.

You don’t have to give up control of your financial information to get professional help.

You can handle the tasks you’re comfortable with and outsource the work that requires more time, consistency, or expertise.

The Bottom Line

DIY bookkeeping can be a smart choice for a simple business.

There’s nothing wrong with a business owner using accounting software and maintaining their own books when the workload is manageable and they understand what they’re doing.

But bookkeeping becomes more demanding as a business grows.

When you have more transactions, employees, accounts, GST/HST obligations, suppliers, customers, and financial decisions to manage, the cost of doing everything yourself isn’t just the time spent entering transactions.

It’s the opportunity cost of taking yourself away from the business.

The goal isn’t to hire a bookkeeper simply because you’re a business owner.

The goal is to have accurate, current financial records while spending your time where it creates the most value.

For some businesses, that means DIY bookkeeping.

For others, it means professional bookkeeping.

And for many growing businesses, the best solution is somewhere in between.

Need Help Deciding?

Not sure whether your business needs a bookkeeper or whether you can continue handling your books yourself?

Mason Clarke Accounting & Bookkeeping Solutions can help you understand what level of bookkeeping support makes sense for your business.

Book a free consultation to discuss your current bookkeeping setup, your business needs, and where professional support could save you time.

Get Free Consultancy

Frequently Asked Questions

Is it worth doing my own bookkeeping?

For a small business with simple finances, DIY bookkeeping can be perfectly reasonable. The decision becomes less attractive when bookkeeping takes significant time, the records become complicated, or you’re unsure whether transactions are being recorded correctly.

Can I use QuickBooks without a bookkeeper?

Yes. Accounting software is designed to help business owners manage many bookkeeping tasks themselves. QuickBooks, for example, provides tools for invoicing, expense tracking, receipt capture, bank feeds, and financial reporting.

However, using accounting software doesn’t guarantee that your books are accurate. You still need to understand and review the information being entered.

When should a small business hire a bookkeeper?

There isn’t one revenue threshold that applies to every business. Consider hiring a bookkeeper when your books are consistently falling behind, your transaction volume is increasing, your financial records are becoming complicated, or bookkeeping is taking time away from more valuable business activities.

Is a bookkeeper cheaper than an accountant?

Bookkeepers and accountants perform different functions, although their services can overlap. Bookkeeping generally focuses on maintaining accurate financial records, while accounting can involve analysis, tax preparation, financial planning, and other higher-level services.

Can a bookkeeper help with GST/HST?

Many bookkeeping providers can maintain the records needed for GST/HST reporting, although the exact services offered vary. CRA requires businesses to maintain supporting records for GST/HST returns and input tax credit claims.

What happens if I fall behind on my bookkeeping?

The longer bookkeeping is left unfinished, the more work it can take to bring the records up to date. A professional bookkeeper can review the existing records, identify discrepancies, reconcile accounts, and bring the books up to date depending on the condition of the records.

Do I need a bookkeeper if I already have an accountant?

Not necessarily, but the two roles can complement each other. An accountant may rely on accurate, organized bookkeeping records when preparing financial statements, tax returns, or providing financial advice. Having the books maintained throughout the year can make year-end accounting considerably more straightforward.