Can I Do Bookkeeping Myself – And When Should I Stop?

Can I Do Bookkeeping Myself – And When Should I Stop?

As a small business owner, you may be wondering: “Can I do my own bookkeeping?” The short answer is yes — but it depends on your stage of business, time capacity, and financial confidence.

DIY bookkeeping is a common path for start-ups and sole traders. It’s budget-friendly and gives you full visibility into your finances. But as your business grows, so does the complexity — and the potential cost of mistakes.

What Does a Bookkeeper Do for a Small Business?

Before deciding whether you can manage it yourself, it helps to understand what a bookkeeper actually does. For small businesses, bookkeepers typically:

• Record day-to-day income and expenses

• Reconcile bank and credit card transactions

• Track accounts payable and receivable

• Categorise expenses correctly (essential for accurate tax claims)

• Prepare basic financial statements like profit and loss reports

• Manage BAS preparation, if qualified

• Set up software workflows and invoice systems

When done well, these tasks form the financial backbone of your business.

Can I Do Bookkeeping Myself?

If your business is in its early stages, and you have the time and discipline, DIY bookkeeping can work, especially if:

• You only have a handful of transactions each week

• Your structure is simple (e.g. sole trader, no payroll)

• You’re comfortable using software like QuickBooks, Excel, or MYOB

• You keep your receipts well-organised

• You understand your tax obligations (or work with an accountant for review)

For many new business owners, bookkeeping in Excel is a common starting point — but it can quickly become inefficient as things scale.

Is It Worth Getting Xero or QuickBooks?

Absolutely. If you're going to handle your own books, investing in a user-friendly, cloud-based tool like Xero can save you hours of admin. Benefits include:

• Bank feeds that automate transaction imports

• Real-time invoice tracking

• BAS reporting capabilities

• Secure cloud storage for receipts

• Seamless collaboration with your accountant or bookkeeper

Many business owners begin with Xero’s Starter plan, which is affordable and scalable. Some accountants also offer Xero subscriptions as part of a bookkeeping package, removing the need to manage it separately.

Is There a Free Bookkeeping Software?

Yes — but free tools often come with limitations. Examples include:

• Wave Accounting – free for basic invoicing and tracking

• Excel templates – customisable but completely manual

• Zip Books (free tier) – limited features and may not suit Australian tax needs

While these can work for side businesses or freelancers, they typically lack:

• ATO-ready BAS functionality

• Local support and payroll tools

• Integration with bank feeds

If you're serious about growing your business, consider your time as a cost, and choose a tool that will scale with you.

When Should You Stop DIY Bookkeeping?

As a rule of thumb, you should stop doing your own bookkeeping when:

• You’re spending more than 2–3 hours per week on admin

• Your transactions exceed 30–50 per month

• You start missing deductions or compliance deadlines

• You feel unsure about GST, PAYG, or BAS obligations

• You’re earning enough that your time is better spent growing the business

Many owners continue DIY far longer than they should — costing them time, tax deductions, and peace of mind.

Final Thoughts

Yes, you can do your own bookkeeping. But the real question is: should you?

When you're just starting out, DIY bookkeeping helps you stay close to your numbers. But as your operations grow, outsourcing to a bookkeeper ensures compliance, accuracy, and time saved.

Justwise Accounting works with business owners who started out managing it all — and are now ready to let go of the books and focus on growth.