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Should I Handle My Own Bookkeeping?

I’m in a bit of a dilemma and could really use some guidance. I know this is close to crossing the line of our community guidelines, but I hope my situation is unique enough to warrant some feedback.

I own four separate LLCs, all under the same restaurant brand, in different locations. Over the past nine years, I’ve worked with six bookkeepers, but none have met my expectations. Some failed to perform, others disappeared entirely, and all seemed eager to charge me without delivering. My CPA initially offered to handle the Bookkeeping but never followed through. Most recently, we stopped using Bench, as they consistently lagged nine months behind.

I’m seriously considering diving into Bookkeeping myself, despite lacking prior experience. My hope is to pick it up quickly and manage it efficiently. Here are a few questions weighing on my mind:

Would taking on bookkeeping myself be ill-advised?
What kind of time commitment, in hours per week, should I anticipate?
Which bookkeeping software would be ideal for my needs?
Do I need separate subscriptions for each of my four LLCs?
What potential pitfalls am I unaware of that might lead to regret?

I sincerely appreciate any insights or advice you can offer. Thank you!
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Deciding whether to manage your own Bookkeeping is a significant decision, especially when you have multiple LLCs and previous experiences with unreliable bookkeepers. Here’s a comprehensive look at the factors you should consider, along with answers to your specific questions:

1. Should You Do Your Own Bookkeeping?

Pros:

Cost Savings: Hiring a bookkeeper can be expensive. Doing it yourself saves costs.
Control: You’ll have direct oversight of your finances and can manage them in real-time.
Flexibility: Schedule your Bookkeeping around your availability.

Cons:

Time-Consuming: Bookkeeping can be especially demanding with multiple businesses.
Learning Curve: It takes time and effort to learn Accounting principles, especially with no prior experience.
Risk of Errors: Mistakes can lead to costly consequences, such as financial mismanagement or compliance issues.

2. How Many Hours Per Week Would You Spend?

The number of hours can vary significantly based on your expertise, the complexity of your businesses, and the software’s efficiency:

Initial Learning & Setup: Expect to spend a significant amount of time upfront—potentially 10-20 hours per week learning the basics and setting up.
Ongoing Maintenance: Once familiar, plan on 5-10 hours per week per LLC, though this can decrease as you become more efficient.

3. Recommended Software

For multi-LLC operations, you’ll need robust, user-friendly software. Here are some popular options:

QuickBooks Online: Widely used and offers robust features with scalability for multiple entities.
Xero: Known for its user-friendly interface and strong reporting features.
Wave: A free option that’s good for small businesses but might require supplemental tools for multi-LLC management.

4. Do You Need Separate Subscriptions?

Separate Entities: You’ll likely need separate subscriptions or accounts for each LLC to ensure clear financial separation.
Multi-Business Discounts: Some software providers offer discounts or specialized pricing plans for managing multiple businesses. Reach out to customer service or a sales rep for more detailed options.

5. Potential Pitfalls

Compliance Issues: Missing filing deadlines or regulatory requirements can result in penalties.
Complexity with Taxes: Managing tax obligations across multiple LLCs can be complicated.
Cash Flow Management: Mismanagement could impact your operational capacity, especially in a cash-flow-intensive business like a restaurant

One response

APAdmin

26 February 2025 at 2:04 PM
Deciding whether to manage your own Bookkeeping is a significant decision, especially when you have multiple LLCs and previous experiences with unreliable bookkeepers. Here’s a comprehensive look at the factors you should consider, along with answers to your specific questions:

1. Should You Do Your Own Bookkeeping?

Pros:
- Cost Savings: Hiring a bookkeeper can be expensive. Doing it yourself saves costs.
- Control: You’ll have direct oversight of your finances and can manage them in real-time.
- Flexibility: Schedule your Bookkeeping around your availability.
Cons:
- Time-Consuming: Bookkeeping can be especially demanding with multiple businesses.
- Learning Curve: It takes time and effort to learn Accounting principles, especially with no prior experience.
- Risk of Errors: Mistakes can lead to costly consequences, such as financial mismanagement or compliance issues.
2. How Many Hours Per Week Would You Spend?

The number of hours can vary significantly based on your expertise, the complexity of your businesses, and the software’s efficiency:
- Initial Learning & Setup: Expect to spend a significant amount of time upfront—potentially 10-20 hours per week learning the basics and setting up.
- Ongoing Maintenance: Once familiar, plan on 5-10 hours per week per LLC, though this can decrease as you become more efficient.
3. Recommended Software

For multi-LLC operations, you’ll need robust, user-friendly software. Here are some popular options:
- QuickBooks Online: Widely used and offers robust features with scalability for multiple entities.
- Xero: Known for its user-friendly interface and strong reporting features.
- Wave: A free option that’s good for small businesses but might require supplemental tools for multi-LLC management.
4. Do You Need Separate Subscriptions?
- Separate Entities: You’ll likely need separate subscriptions or accounts for each LLC to ensure clear financial separation.
- Multi-Business Discounts: Some software providers offer discounts or specialized pricing plans for managing multiple businesses. Reach out to customer service or a sales rep for more detailed options.
5. Potential Pitfalls
- Compliance Issues: Missing filing deadlines or regulatory requirements can result in penalties.
- Complexity with Taxes: Managing tax obligations across multiple LLCs can be complicated.
- Cash Flow Management: Mismanagement could impact your operational capacity, especially in a cash-flow-intensive business like a restaurant
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