Do you need a bookkeeper? Signs it’s time, and when doing it yourself is fine

“I’ve never had a system. It would be so nice, come tax time, to not spend an entire week trying to find things.”

If that sounds like you, you’re not alone. But hiring a bookkeeper isn’t the right move for everyone, or not right away.

Here’s the short answer. If your business is small and simple, you have a system that works and you understand your numbers, you can keep doing your own books. If you’re behind, you’re guessing at your tax, or the books are eating time you should be spending on clients, it’s time to hand them off.

When doing it yourself is fine

• Your business is simple. A few sales a month, one bank account, one credit card.
• You have a system. You use accounting software, you keep your receipts, and you update it at least monthly.
• You understand what you’re looking at. You can read your profit and loss and you know roughly what you owe in tax.
• You actually don’t mind it. Some owners like knowing every number. That’s a good thing.

Knowing your own numbers matters, even once someone else keeps the books. A bookkeeper should help you understand your money, not take it out of your sight.

Signs it’s time to hire a bookkeeper

• You’re behind, and it’s been months since anything was reconciled.
• Tax time means a week of digging through email, the bank and a shoebox.
• Business and personal are mixed together, and you’re not sure how much to pay yourself.
• You don’t know how much to set aside for tax, so you wait and hope.
• You’ve registered for GST/HST, or you have staff, and the filing dates are piling up.
• The books are taking hours you could be spending on paying work.

What a good bookkeeper actually saves you

• Getting paid on time. Invoices go out, and someone notices who hasn’t paid.
• Cash flow you can plan around. You know what’s coming in and going out before it happens.
• Pricing based on real numbers. You can see what each service or product really makes.
• Deductions you’d have missed. Expenses coded properly all year, not guessed at in April.
• Penalties and interest. GST/HST and payroll filed on time.
• Money leaking out. Duplicate charges, forgotten subscriptions and bills paid twice get caught.
• A cheaper year-end. Clean books mean less time for your accountant to sort out.
• Your time and your head space. Probably the biggest one.

Not ready to hand it all off?

What to look for when you hire

• Canadian experience. GST/HST, PST, payroll remittances and CRA deadlines are different here.
• Cloud accounting software. Xero or QuickBooks Online, so you can see your books any time.
• Clear monthly pricing. You know what you’re paying and what it covers.
• Plain-English answers. You should never leave a conversation feeling dumb.
• You keep control. Your bank logins stay yours. A bookkeeper should have view access, and you approve payments.

Not sure who does what? Here’s the difference between a bookkeeper and an accountant.

Let’s get your books sorted No judgment, no accountant-speak

• Want it handled? Book a free 15-minute video call. Rather keep it short? Email team@kcandcompany.ca with what you do and what’s bugging you.
• Doing your own books? The Books Check-Up is a flat-fee review. We look at what you’ve got, flag what’s off and walk you through it.