When Should a Small Business Hire a Bookkeeper?

“Do I really need a bookkeeper or can I do it myself?”

One of the top that question frequently appears in Reddit r/smallbusiness and Google .

Most small business owners start out doing their own bookkeeping.

At the beginning, it feels manageable. You might track expenses in spreadsheets or rely on accounting software like QuickBooks.

But as your business grows, bookkeeping becomes more complex. Transactions increase, tax obligations expand, and financial reporting becomes more important for decision-making.

So how do you know when it's time to hire a professional bookkeeper?

When Should a Small Business Hire a Bookkeeper?

Below are the most common signs your business may benefit from professional bookkeeping support.

1. Your Books Are Always Behind

One of the clearest signs is falling behind on bookkeeping.

Many entrepreneurs tell themselves:

"I'll update everything at the end of the month."

But when business gets busy, bookkeeping gets postponed. Soon you're months behind on financial records.

This can lead to:

• inaccurate financial reports

• tax preparation stress

• difficulty tracking profitability

A professional bookkeeper keeps records updated regularly so your numbers stay accurate.

2. Tax Season Becomes Stressful

If tax season feels chaotic every year, your bookkeeping system may not be working.

Accountants rely on organized financial records to prepare tax returns efficiently.

When records are incomplete, accountants must spend additional time cleaning up data which increases accounting fees.

Maintaining accurate books throughout the year simplifies tax preparation.

According to the Canada Revenue Agency, businesses must maintain proper financial records supporting income and expenses.

3. You Don't Know Your Financial Numbers

A surprising number of business owners cannot answer simple financial questions like:

• What was your profit last month?

• How much cash is available?

• Which services generate the most revenue?

Without clear financial reports, it becomes difficult to make informed business decisions.

A bookkeeper provides monthly financial reports such as:

• Profit & Loss statements

• Balance sheets

• Cash flow reports

These reports help owners understand business performance.

4. You're Spending Too Much Time on Bookkeeping

Time is one of the most valuable resources for business owners.

If bookkeeping takes several hours every week, that's time taken away from revenue-generating activities.

Many entrepreneurs realize outsourcing bookkeeping allows them to focus on:

• sales

• customer service

• growth

  
  

5. Your Business Is Growing

Growth is a great sign but it also increases financial complexity.

Examples include:

• hiring employees

• managing inventory

• collecting GST/HST

• tracking multiple income streams

As businesses scale, bookkeeping systems need to evolve as well.

What a Professional Bookkeeper Actually Does

A professional bookkeeper handles the financial organization of your business.

Typical responsibilities include:

• categorizing transactions

• reconciling bank accounts

• maintaining financial records

• generating monthly reports

• preparing records for accountants

• managing GST/HST tracking

This ensures your financial information remains accurate and organized.

FAQ

Do small businesses really need a bookkeeper?

Many small businesses benefit from bookkeeping once transactions increase or tax requirements become more complex.

How much does a bookkeeper cost?

Costs vary depending on the number of transactions and services required. However, many businesses find professional bookkeeping saves money by reducing accounting fees and financial errors. Expect to pay 30$ and above per hour

Can QuickBooks replace a bookkeeper?

Accounting software is a powerful tool, but it still requires someone who understands bookkeeping principles.