Bookkeeping for a Solopreneur: A Smart Investment not an Expense
- Allison O'Dell
- May 22
- 3 min read
Many solopreneurs suggest that bookkeeping is an expense that's unnecessary, especially when funds are tight. However, experience reveals that hiring a bookkeeper is not just a cost; it’s a strategic decision. This investment can save time, reduce stress, and even lead to financial gains.
The Importance of Accurate Financial Records
A major benefit of hiring a bookkeeper from the start is the assurance of accurate financial records. When I took on multiple roles—marketing, sales, and customer service—I struggled to keep up with my financial documentation. Now I realize that a professional bookkeeper provides the expertise I lacked at the time. They ensure transactions are recorded correctly and promptly.
This accuracy is crucial. According to a survey by the American Institute of CPAs, 29% of small business owners cite cash flow issues as their number one concern. With precise financial records, clarity is a benefit to understand cash flow, expenses, and profits. This value allows for more informed decisions, helping to identify the strategies that work and what might need adjustment.
Time Management: Focus on What You Do Best
As entrepreneurs, we often overlook the real value of our time. I learned that spending hours trying to do everything (including bookkeeping tasks) detracted from my focus on critical activities like product development and interacting with clients. By hiring a bookkeeper, energy and time is available to grow the business.
Outsourcing these tasks frees up valuable hours each week—hours to invest in developing new products or engaging with customers.
Financial Insights and Tax Preparation
Another advantage of hiring a bookkeeper is the financial insights they provide. This expertise goes beyond mere record-keeping; by having timely and accurate financial statements, spotting trends and identifying areas for growth is much more effective. Thanks to these insights, there's much more awareness of the financial health of even the smallest business. This leads to better planning for future expansion and necessary investments.
Accountants love when their clients also hire bookkeepers as this makes their job much more straight-forward. They also receive timely financial reports that seldom come from solopreneurs trying to do everything for their business.
Bookkeeping for a Solopreneur Cost Effectiveness Over Time
Many solopreneurs hesitate to hire a bookkeeper due to upfront costs. According to a report by QuickBooks, businesses that invest in professional bookkeeping services can increase their net profit by up to 15% within a year.
To give you a perspective, I charge a one-time $50 on-boarding fee, and then a minimum of $35 per month. That's it! As your business grows, the monthly cost increases with the hours required to maintain your financial records. If using QuickBooks Online, there will be an additional subscription cost yet they now have - only available through a QuickBooks ProAdvisor - a subscription for limited needs that only costs $10.80 per month. If you prefer a spreadsheet, I do charge a $10/month surcharge so the QuickBooks subscription is definitely the way to go.
Consider that, $45 per month and all you financial records will be maintained and you can focus on your business growth and client services. That's not an expense (I mean, technically it is), that's what's called an opportunity!
Final Thoughts on Investment vs. Expense
The belief that hiring a bookkeeper is an unnecessary expense is just a myth. As a solopreneur, this smart investment can save time and provided crucial insights into your business finances. By outsourcing bookkeeping tasks, you can devote your energy to business growth and achieving targeted goals. It's time for all solopreneurs to recognize hiring a bookkeeper as a wise, strategic investment rather than a simple expense.
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