Sorting through last month's receipts on a Sunday evening, or trying to remember between two client meetings which invoice you already sent: many entrepreneurs recognise this. Bookkeeping often grows faster alongside a business than expected, and at some point keeping it up to date costs more time and energy than it delivers in return. That is when the question arises: do I keep doing this myself, or do I outsource it?
Short answer
Outsourcing your bookkeeping is worthwhile for many entrepreneurs as soon as the time it costs to keep it up yourself no longer weighs up against the revenue or peace of mind you could have created in that time. That tipping point is not tied to a fixed number of hours or a fixed turnover, but depends on the complexity of your administration, how many errors or backlogs you run into, and how much stress it causes you. A bookkeeper or accounting firm takes over the recording, ordering and processing of your financial data, so you can focus on your business again.
What exactly does outsourcing your bookkeeping involve?
When you outsource your bookkeeping, you hand over the day-to-day processing of your financial data to a bookkeeper or accounting firm. This usually includes processing purchase and sales invoices, keeping track of your cash and bank transactions, preparing and filing the VAT return, and getting the figures ready for your annual accounts or income tax return. Depending on the arrangement, this can also include payroll administration, accounts receivable management or periodic financial consultations.
Outsourcing does not mean you lose all control. You remain responsible for your business and for providing documents on time, and you usually get periodic insight into your figures, for example through online accounting software or a quarterly overview. The difference is that you no longer have to spend your own time manually entering and organising all that data.
When is outsourcing worth it?
There is no hard line at which outsourcing suddenly becomes logical, but a number of signals come up repeatedly among entrepreneurs who take the step.
- You notice your bookkeeping is piling up and you keep running behind the facts, for example filing a VAT return in a last-minute rush.
- Your business is growing: more clients, more invoices, perhaps staff, so your administration becomes more complex than a spreadsheet can still handle.
- You lack an overview of your figures and don't really know how your business is doing financially.
- You spend evenings and weekends on bookkeeping, time you would rather spend on clients, product development, or simply on yourself.
- You have previously had an additional tax assessment, fine or correction from the Tax Authority due to errors in a return.
If you recognise two or more of these signals, it is in any case worth calculating what outsourcing would deliver for you, even if you ultimately decide to keep doing it yourself for now.
What does outsourcing bookkeeping cost?
The cost of a bookkeeper or accounting firm varies widely and depends on the number of transactions, whether you need VAT returns, payroll administration or annual accounts, and how well organised your administration already is. A bookkeeper usually charges a fixed amount per month or per quarter, or an hourly rate for separate work such as the annual accounts. When requesting a quote, always ask exactly what is included, so you are not faced with surprises for, say, an extra VAT correction or additional advice.
The comparison that really matters is not just the bookkeeper's bill, but also what your own time is worth. An entrepreneur who spends four hours a week on bookkeeping quickly racks up two hundred hours a year on tasks someone else can do faster and with less chance of errors. Work out what those hours could have earned you in revenue or free time, and set that against the cost of outsourcing. For many entrepreneurs, that comparison ultimately works out in favour of outsourcing, although it always remains an individual judgement call.
What remains your own responsibility?
Even if you outsource your bookkeeping, you remain ultimately responsible for your business and for the accuracy of your tax returns. In practice, this means you supply invoices, receipts and bank statements on time, you answer your bookkeeper's questions promptly, and you actually review the reported figures instead of leaving them unread. A good bookkeeper flags deviations and gives advice, but decisions about your business, such as making investments or hiring staff, remain yours to make.
It is therefore wise to make clear agreements in advance about who does what and how often you will be in contact. Some entrepreneurs want a short overview every month, others prefer contact only at the end of the quarter. Both are possible, as long as expectations on both sides are clear.
Case study: from chaos to clarity
A sole trader in construction kept his bookkeeping in a shoebox of receipts and a simple spreadsheet. As long as he had few jobs, that worked well enough, but once he started taking on more projects at the same time and also began buying materials for subcontractors, his administration fell well behind. The VAT return became a race against the clock every quarter, and it later turned out he had forgotten to deduct certain costs. After outsourcing his bookkeeping, he got a fixed point of contact, a clear rhythm for submitting receipts via a scanning app, and a quarterly overview in which he could see exactly how his business was doing. The time he used to spend on bookkeeping he now uses to take on extra jobs.
Doing it yourself or outsourcing: how do you choose?
Start by honestly mapping out how much time you currently actually spend on your administration, and how it makes you feel: organised and in control, or rushed and uncertain. Then request a quote from a few bookkeepers or accounting firms, so you get a realistic picture of the costs for your specific situation. Don't look only at the price, but also at the way of working together: does the bookkeeper work with online accounting software, how quickly do you get answers to questions, and does the communication style suit you.
Frequently asked questions about outsourcing bookkeeping
Can I outsource my bookkeeping partially?
Yes, that is possible. Some entrepreneurs have only the VAT return and annual accounts done by a bookkeeper and keep the day-to-day invoicing themselves, while others outsource everything. Discuss with your bookkeeper which parts you want to keep doing yourself and which you would rather hand over.
Do I lose control of my figures if I outsource?
Not necessarily. Most bookkeepers work with online accounting software in which you can also view your current figures yourself at any time. Discuss in advance how often you want to receive an overview or explanation, so you don't get the feeling you're losing track.
Is outsourcing only interesting for larger companies?
No, sole traders and small businesses often outsource (parts of) their bookkeeping too, precisely because they can spare little time for tasks that don't directly generate revenue. The choice depends less on the size of the business and more on how much time and stress the administration costs you.
What if my bookkeeping is not in order right now?
A backlog is not a reason to postpone outsourcing, but rather a reason to consider it. A bookkeeper can help get things back in order first, for example by still correctly filing overdue VAT returns, before you switch to a fixed, organised rhythm.
How quickly will I notice the difference after outsourcing?
That varies per situation, but many entrepreneurs notice within a few months that they spend less time on administrative hassle and have more insight into their figures, especially once submitting documents has become a fixed, established rhythm.
Not sure whether outsourcing makes sense for your situation? Take a look at our bookkeeping for sole traders and small businesses or our full overview of services for the possibilities.
