When Should You Hire a Bookkeeper? 

When Should You Hire a Bookkeeper? 

One of the questions business owners ask most often is when it’s time to hire a bookkeeper. The answer depends on your business, but there are a few practical rules of thumb that can help you decide. 

Rule of Thumb #1 

If your time is worth more than about $120 an hour, your focus should be on the work that generates the most value. Whether you’re a tradesperson or have another highly valued skill, your time is usually better spent serving clients than handling your own bookkeeping. In many cases, it’s worth having someone else take care of your books so you can focus on the work you’re best at. 

Rule of Thumb #2 

If your business earns less than about $150,000 a year, I’d probably hold off on hiring a bookkeeper. Learn the basics of QuickBooks and do your bookkeeping yourself. If you get stuck, an Intuit ProAdvisor can help you learn the software and answer your questions. 

Why Waiting Can Make Sense 

Smaller GST filings usually mean smaller penalties if you’re late filing. You may not have employees, payroll, or source deductions to worry about either. If you’re operating as a sole proprietor, having your tax preparer put everything together at year-end is often enough. 

Instead of paying someone to do your bookkeeping throughout the year, keep your records organized and bring everything to your tax preparer at year-end. 

What’s Next? 

In the next part of this series, we’ll look at what changes as your business grows and when it makes sense to bring in additional accounting and bookkeeping support. 

Before your business grows to the next stage, talk with your accountant about whether it’s time to bring in a bookkeeper or continue managing your books yourself. 

Please note: This content is for general information purposes only and does not constitute personalized accounting, tax, or financial advice. Reach out to us to book a personalized consultation based on your business and financial situation.  

One of the questions business owners ask most often is when it’s time to hire a bookkeeper. The answer depends on your business, but there are a few practical rules of thumb that can help you decide. 

Rule of Thumb #1 

If your time is worth more than about $120 an hour, your focus should be on the work that generates the most value. Whether you’re a tradesperson or have another highly valued skill, your time is usually better spent serving clients than handling your own bookkeeping. In many cases, it’s worth having someone else take care of your books so you can focus on the work you’re best at. 

Rule of Thumb #2 

If your business earns less than about $150,000 a year, I’d probably hold off on hiring a bookkeeper. Learn the basics of QuickBooks and do your bookkeeping yourself. If you get stuck, an Intuit ProAdvisor can help you learn the software and answer your questions. 

Why Waiting Can Make Sense 

Smaller GST filings usually mean smaller penalties if you’re late filing. You may not have employees, payroll, or source deductions to worry about either. If you’re operating as a sole proprietor, having your tax preparer put everything together at year-end is often enough. 

Instead of paying someone to do your bookkeeping throughout the year, keep your records organized and bring everything to your tax preparer at year-end. 

What’s Next? 

In the next part of this series, we’ll look at what changes as your business grows and when it makes sense to bring in additional accounting and bookkeeping support. 

Before your business grows to the next stage, talk with your accountant about whether it’s time to bring in a bookkeeper or continue managing your books yourself. 

Please note: This content is for general information purposes only and does not constitute personalized accounting, tax, or financial advice. Reach out to us to book a personalized consultation based on your business and financial situation.