Is DIY Bookkeeping the right choice for your business?

June 17, 2025

With tools like Xero and MYOB, managing your own bookkeeping has never been more accessible.

Many small business owners are tempted to take the DIY approach — and for some, it works well.

But is it always the right move?

In this article, we explore the pros and cons of DIY bookkeeping, the hidden risks, and how to know when it's time to ask for help.

The Appeal of DIY Bookkeeping

There are some clear advantages to doing your own bookkeeping:

It can save you money:

Handling your own books means you’re not paying someone else to do it, great for businesses just starting out or operating on a tight budget.

You stay connected to your numbers:

When you’re in your accounts regularly, you know exactly what’s going on:

Who to invoice
Who has or hasn’t paid
What bills are due

You’re actively engaged with the financial pulse of your business.

You can run your own reports:

If you’re confident using Xero or MYOB, you can run profit and loss reports, check for inconsistencies, and make coding adjustments to ensure your numbers tell an accurate story.

But DIY bookkeeping has hidden costs:

Many business owners quickly discover that while entering data is manageable, interpreting it is another matter.

You might still feel in the dark when it comes to the bigger picture.

Here are the common pitfalls of doing it yourself:

It takes up valuable time:

Bookkeeping can be time-consuming , especially if it’s not your area of expertise.

Every hour spent reconciling bank transactions is time you’re not spending growing your business.

Ask yourself: What’s your time worth?

Mistakes can be costly:

Bookkeeping isn’t just data entry.

Coding errors, missed payments, or inaccurate GST allocations can lead to:

Incorrect reports
Overpaying tax
Higher accounting bills (when your accountant has to fix mistakes)

Compliance Risks:

If your records aren’t kept properly, you could run into trouble. Poor record-keeping is one of the leading causes of business audits. (See our blog post about record storage for tips.)

Unclear Profitability:

Without accurate, up-to-date numbers, it’s difficult to tell whether your services are profitable or where your money is going.

You might be heading toward a cash flow crisis and not even know it.

When to get help with bookkeeping:

DIY bookkeeping can work — but only if your systems are clean, accurate, and actively maintained. If you’re unsure about any of the following, it’s worth talking to a professional:

Are your bank accounts reconciled properly?
Are your financial reports reliable?
Is your GST being filed correctly?
Do you understand what your numbers mean?

How Office Outworkz Can Help?:

At Office Outworkz, we support small businesses who want better financial visibility, whether they need full-service bookkeeping or just a helping hand.

Bookkeeping Expertise:

We ensure your transactions are recorded accurately and help you stay compliant with New Zealand tax requirements, including GST, payroll, and IRD obligations.

Proactive Financial Management:

We don’t just enter data, we create meaningful reports, flag issues early, and help you monitor the financial health of your business in real time.

Seamless Collaboration:

We can work with your existing accountant or provide a complete end-to-end bookkeeping and accounting services, including cash flow projections and end-of-year preparation.

Empowering You to Understand Your Accounts:

We believe in transparency. We explain what’s happening in plain English, so you can feel confident in your numbers and make informed business decisions.

Support for DIY bookkeepers:

Prefer to stay hands-on? We can provide: