Late nights, tangled receipts, and a Google search history that includes “how to a fix Balance Sheet that doesn’t balance.” Sound familiar?
DIY bookkeeping and accounting often starts with good intentions: save some money, stay in control, and figure it out as you go. And honestly, for many business owners (especially in the early days) it works just fine.
But over time, the hidden costs of doing your own books tend to surface. Some are obvious (like time), and others sneak up on you (like missed tax opportunities, mental fatigue, or compliance issues).
Here’s a breakdown of what those costs can actually look like.
1. Time: ~$9,000/year
Bookkeeping takes time, often more than expected. If you spend just 10 hours a month on bookkeeping and your time is worth $75/hour, that’s 120 hours/year, or $9,000/year of your own time.
This doesn’t include time spent second-guessing decisions, fixing errors, or researching CRA requirements.
How it compares:
- Accounting-only support typically ranges from $250 - $750/month depending on volume and complexity - that’s $3,000 - 9,000/year
- Full-scope finance support (which usually includes bookkeeping, payroll, corporate tax filings, financial statements, sales tax, and ongoing support) can range from $1,000 - $2,500/month, or $12,000 - $30,000/year
DIY can be a solid approach if it fits your stage. But once bookkeeping starts to eat into higher-value work - or weekends - it might be worth exploring whether outsourcing could save time and money in the long run.
2. Errors and Fixes: $500 - $5,000+
Accounting mistakes can be costly… and not just in dollars.
Here’s what we mean:
- Misclassified expenses can result in incorrect tax filings
- Missed deductions mean higher tax bills. We covered some of the most commonly missed ones here
- Late CRA filings can lead to penalties: e.g., $25/day for late T2 returns, capped at $2,500
- Incorrect GST/HST filings can trigger interest or audits
- Payroll errors may require retroactive fixes and penalties
Even a single late filing or missed deduction can cost hundreds or thousands. Not to mention the time and energy spent fixing things later.
How it compares: Many accountants catch and prevent these issues early, which often pays off in lower tax bills and fewer surprises.
3. Opportunity Cost: Harder to measure, but very real
While you’re categorizing transactions or reconciling Stripe payouts, you’re probably not:
- Launching new campaigns
- Meeting with leads
- Refining your offer
- Spending time with your team (or yourself)
These missed opportunities don’t come with a price tag, but they still cost you.
Even one deal you didn’t close because your head was in admin work? That could’ve been worth $5,000, $10,000, or more.
How it compares: Offloading accounting gives you time back to focus on revenue-generating tasks - the ones only you can do.
4. Missed Tax Strategy: $3,500/year on average
A study from the Canadian Federation of Independent Business (CFIB) found that small businesses overpaid by an average of $3,500/year due to missed deductions and credits.
These aren’t edge cases, they’re things like:
- Unclaimed home office expenses
- Missed input tax credits
- Unused SR&ED credits (if eligible)
- Inefficient compensation structures
How it compares: A good accountant will help you plan so you’re not overpaying year after year.
5. Mental Load: Not always visible, but it adds up
When you’re doing the books yourself, you’re also carrying the mental weight of:
- “Did I do that right?”
- “What if I missed something?”
- “Is this going to be a problem at year-end?”
This decision fatigue often leads to procrastination until you’re rushing through things at tax time or pulling an all-nighter before a CRA deadline.
How it compares: Having someone else on top of your books means fewer mental tabs open.
6. Software Costs: ~$600 - $1,200/year + learning curve
Cloud accounting platforms like Xero, QuickBooks, and Wave have made bookkeeping more accessible and efficient. With features like automated bank feeds, invoicing, and built-in reporting, they take a lot of the heavy lifting off your plate.
But software alone doesn’t always give you the full picture especially as your business starts to scale or gets more complex.
- Subscription costs typically range from $20 - $50/month
- There’s a learning curve when setting things up or troubleshooting new features
- And even with the right tools, it’s common to feel unsure about how to interpret reports or configure everything correctly for your setup
How it compares: Many accountants (ourselves included) work directly within platforms like Xero, helping clients set things up right and making sure the outputs actually support smarter decisions, not just compliance.
So... Is DIY Accounting Worth It?
Sometimes… yes.
If your business is just starting out, transactions are simple, and you enjoy doing the books, DIY might still make sense. For some business owners, it's a great way to stay close to the numbers.
But as your business grows, so do your financial responsibilities. And what once felt manageable can start costing more than it saves, whether that’s time, tax, or just headspace.
Final Thoughts
There’s no “right” answer here. What matters most is that you understand the trade-offs so your accounting setup matches where your business is today (not where it was a year ago).
If you’re doing it yourself and it’s working - keep going.
If it’s starting to feel like a weight - you’ve got options.
Either way, having clarity around your options is the first step, and that’s something we’re always happy to help with.
If you're curious about what that could look like for your business, we’re happy to chat.
