Should You Hire a Bookkeeper or Use QuickBooks? A No-Fluff Guide for Small Business Owners
Bookkeeping is one of those parts of running a business that most entrepreneurs don’t get excited about—until something goes wrong.
You might be wondering:
- Should I hire a bookkeeper to handle this for me?
- Can I manage it myself using software like QuickBooks Online?
- What’s the smartest (and most cost-effective) choice?
This guide breaks it all down so you can make a confident, informed decision—whether you’re just starting out or trying to get your finances back on track.
1. What Is Bookkeeping, Really?
Bookkeeping is the process of recording, organizing, and managing the financial transactions of your business. It includes:
- Tracking income and expenses
- Reconciling bank accounts
- Managing invoices and bills
- Recording payroll and tax payments
- Preparing reports (P&L, cash flow, etc.)
Good bookkeeping gives you a clear picture of your business health—and makes tax time way less stressful.
2. Option 1: Using QuickBooks Online (QBO)
QuickBooks Online is the most popular bookkeeping software for small businesses—and for good reason. It’s powerful, affordable, and built to grow with you.
✅ Pros of Using QBO:
- Cost-effective: Starts at around $30/month
- Full control: You see your numbers in real time
- Automated bank feeds: Easily match transactions
- Customizable invoicing and payment tracking
- Tax-ready reports: Easily export to your CPA or tax software
- Scales with your business: Add payroll, inventory, and more
- Integrates with apps like Shopify, Gusto, and PayPal
❌ Cons of Using QBO:
- Learning curve: Some features take time to understand
- Time-consuming: You’re responsible for staying on top of it
- Mistakes can happen: Categorization errors or missed deductions
- No real-time guidance unless you hire a QuickBooks ProAdvisor
Ideal For:
- Solo entrepreneurs, freelancers, early-stage startups
- Owners with time to learn and manage their finances
- Anyone who wants to minimize ongoing costs
3. Option 2: Hiring a Bookkeeper
Hiring a bookkeeper means outsourcing your financial recordkeeping to a professional—either as a contractor or through a bookkeeping firm.
✅ Pros of Hiring a Bookkeeper:
- Saves time: Frees you up to focus on running the business
- Expert support: They know what to track and what to flag
- More accurate books: Reduces risk of tax or compliance issues
- Useful insights: Many can provide monthly reports or trend analysis
- Peace of mind: Especially during tax season or audits
❌ Cons of Hiring a Bookkeeper:
- Cost: Usually $300–$800/month (or more, depending on complexity)
- Less visibility: You might not understand your numbers day-to-day
- Quality varies: Not all bookkeepers are created equal
- Still need to provide data: You’ll have to hand over receipts, invoices, etc.
Ideal For:
- Established businesses with steady revenue
- Owners who are short on time or not confident with numbers
- Businesses with employees, inventory, or multiple revenue streams
4. Comparing Costs: QuickBooks vs. Bookkeeper
| Feature | QuickBooks Online | Bookkeeper |
|---|---|---|
| Starting Cost | $30/month | $300–$800/month |
| Software/Tools | Included | Often uses QBO or Xero |
| Time Required | High (you do the work) | Low (they do it for you) |
| Accuracy | Depends on your skill | Higher with a trained bookkeeper |
| Strategic Insights | Some reports | Monthly financial insights available |
| Tax Prep Support | Exports available | May work with your CPA directly |
💡 Tip: Many business owners start with QBO, then hire a bookkeeper as they grow or finances get more complex.
5. Hybrid Option: QuickBooks + Bookkeeper
Good news—you don’t have to choose just one.
Many business owners use QuickBooks Online as their core software and outsource the bookkeeping tasks to a part-time bookkeeper or accountant. This hybrid model means:
- You keep access and visibility
- They do the transaction entry and reconciliations
- You get the best of both worlds
This is especially popular with:
- Coaches and consultants
- Small e-commerce businesses
- LLCs with growing expenses or tax needs
6. What to Consider When Making Your Decision
Here are the key questions to ask yourself:
1. How much time do you have?
If you’re already overwhelmed with sales, marketing, or operations, DIY bookkeeping might add stress.
2. What’s your budget?
QuickBooks is cheaper upfront, but time is money. Hiring a bookkeeper can be worth it if it frees up hours each month.
3. How confident are you with numbers?
Do you understand debits and credits? Bank reconciliations? If not, mistakes can be costly.
4. Do you need investor- or loan-ready reports?
Lenders and investors want professional-looking financials. A bookkeeper helps you stay ready for funding.
5. How complex are your finances?
If you sell products, manage inventory, have contractors or employees, your books will get complicated fast.
7. Why QuickBooks Online Is Still a Smart Starting Point
Even if you plan to hire help, QuickBooks Online is worth setting up now:
- It centralizes your financial data
- You can connect your bank accounts and credit cards
- It tracks every transaction for tax season
- You own and control your financial records
- Any future bookkeeper can log in and pick up where you left off
8. What Bookkeepers Wish You Knew Before Hiring Them
- Keep your receipts—digitally if possible
- Separate business and personal finances
- Choose the right chart of accounts from the start
- Don’t wait until tax season to get organized
- Regular monthly reconciliations are non-negotiable
- QuickBooks is their preferred software 90% of the time
9. Bonus: What to Look For in a Bookkeeper
If you decide to hire someone, here’s what to ask:
✅ Are they certified (e.g., QuickBooks ProAdvisor)?
✅ Do they specialize in your industry?
✅ Can they provide references or case studies?
✅ Do they offer flat-rate pricing?
✅ Will they give you monthly reports and insights?
Start with a discovery call or trial month before committing long-term.
10. Final Thoughts: The Bottom Line
There’s no one-size-fits-all answer, but here’s a quick summary:
| Situation | Best Choice |
|---|---|
| Just starting out, watching costs | QuickBooks Online |
| Don’t want to touch the books | Hire a bookkeeper |
| You want control, but also help | QBO + freelance bookkeeper |
| Growing fast or raising funds | Hire a bookkeeper using QBO |
Whether you do it yourself or hire a pro, what matters most is that you stay on top of your finances. Clean books help you make smarter decisions, pay less in taxes, and sleep better at night.
