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Should I Manage My Own Bookkeeping?

Hey everyone, I’m in need of some advice. I understand this might be toeing the line of Rule 5, but I hope my situation is unique enough to be worth discussing.

I operate four distinct LLCs, each representing a different location of my restaurant brand. Over the past nine years, I’ve cycled through six different bookkeepers. Unfortunately, most haven’t performed adequately—some even ghosted me—yet all have managed to take my money. My CPA initially offered to handle the Bookkeeping but failed to follow through. More recently, my experience with Bench ended poorly, as they were persistently nine months behind.

This has led me to consider handling the Bookkeeping myself. Although I lack experience in this area, I’m optimistic about picking it up quickly. Here are some of the questions on my mind:

Would you advise against managing the bookkeeping on my own?
How many hours per week should I anticipate dedicating to this task?
Which software would be best suited for my needs?
Will I need to purchase separate subscriptions for each of the four businesses?
What potential pitfalls or challenges should I be aware of that could lead to regret?

I appreciate any guidance you can provide—thanks in advance!
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Deciding whether to handle your own Bookkeeping is a significant decision, especially given your context with multiple LLCs and previous challenges with bookkeepers. Here’s a comprehensive breakdown of the factors you’ll need to consider:

Should I Do My Own Bookkeeping?

Pros of Doing Your Own Bookkeeping:

Cost Savings: You can save money by not having to pay a bookkeeper. This is especially important if you’ve had unreliable service for the money you’ve spent previously.
Control and Insight: By managing your own books, you gain a clearer understanding of your company’s finances, which could help in making informed decisions.
Flexibility: You can update your books whenever it’s convenient, rather than waiting on someone else’s schedule.

Cons of Doing Your Own Bookkeeping:

Time-Consuming: Bookkeeping can be quite time-intensive, especially if you’re new to it. This might take away from other aspects of running your business.
Learning Curve: There is a significant amount of learning required if you’re not experienced in bookkeeping. Mistakes can be costly and time-consuming to fix.
Compliance Risks: Without proper knowledge, you might miss compliance deadlines or requirements that a professional bookkeeper would typically manage.

How Many Hours Per Week Would You Be Spending?

The time commitment will vary based on the complexity and volume of your transactions. For a small business owner without bookkeeping experience, expect to spend:

Initial Learning Phase: Possibly 10-20 hours/week for a couple of months, depending on how fast you learn.
Ongoing Maintenance: Once you’re familiar with the process, it might take 5-10 hours/week per location during regular operations, assuming you keep on top of it consistently.

What Software Should I Use?

For small businesses, especially those with multiple entities like yours, consider these popular options:

QuickBooks Online: Widely used, user-friendly, and offers a range of features suitable for various business sizes.
Xero: Known for being intuitive and has strong payroll capabilities. Particularly good if you want integrated add-ons.
Wave: A free option that is good for smaller businesses, though it may not offer all the advanced features you might eventually need.

Do I Have to Buy Four Different Subscriptions?

Yes, typically, each LLC would require its own subscription or separate account within the software because they have

One response

APAdmin

25 February 2025 at 7:23 PM
Deciding whether to handle your own Bookkeeping is a significant decision, especially given your context with multiple LLCs and previous challenges with bookkeepers. Here’s a comprehensive breakdown of the factors you’ll need to consider:

Should I Do My Own Bookkeeping?

Pros of Doing Your Own Bookkeeping:
1. Cost Savings: You can save money by not having to pay a bookkeeper. This is especially important if you’ve had unreliable service for the money you’ve spent previously.
2. Control and Insight: By managing your own books, you gain a clearer understanding of your company’s finances, which could help in making informed decisions.
3. Flexibility: You can update your books whenever it’s convenient, rather than waiting on someone else’s schedule.
Cons of Doing Your Own Bookkeeping:
1. Time-Consuming: Bookkeeping can be quite time-intensive, especially if you’re new to it. This might take away from other aspects of running your business.
2. Learning Curve: There is a significant amount of learning required if you’re not experienced in bookkeeping. Mistakes can be costly and time-consuming to fix.
3. Compliance Risks: Without proper knowledge, you might miss compliance deadlines or requirements that a professional bookkeeper would typically manage.
How Many Hours Per Week Would You Be Spending?

The time commitment will vary based on the complexity and volume of your transactions. For a small business owner without bookkeeping experience, expect to spend:
- Initial Learning Phase: Possibly 10-20 hours/week for a couple of months, depending on how fast you learn.
- Ongoing Maintenance: Once you’re familiar with the process, it might take 5-10 hours/week per location during regular operations, assuming you keep on top of it consistently.
What Software Should I Use?

For small businesses, especially those with multiple entities like yours, consider these popular options:
1. QuickBooks Online: Widely used, user-friendly, and offers a range of features suitable for various business sizes.
2. Xero: Known for being intuitive and has strong payroll capabilities. Particularly good if you want integrated add-ons.
3. Wave: A free option that is good for smaller businesses, though it may not offer all the advanced features you might eventually need.
Do I Have to Buy Four Different Subscriptions?

Yes, typically, each LLC would require its own subscription or separate account within the software because they have
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