The Time Investment: Small Business Owners Versus Professionals in Bookkeeping

Jason Silvia
Feb 9
4 min read

Keeping accurate financial records is a crucial part of running a small business. Yet, many small business owners find themselves spending hours managing their books, often without the expertise or efficiency of a professional bookkeeper. This raises an important question: how much time does a small business owner spend on bookkeeping compared to a professional? Understanding this difference can help business owners make informed decisions about managing their finances and freeing up time for growth.

Eye-level view of a cluttered desk with receipts, invoices, and a calculator — Small business bookkeeping setup with papers and calculator

Small business bookkeeping setup with papers and calculator

How Much Time Do Small Business Owners Spend on Bookkeeping?

Small business owners often wear many hats, and bookkeeping is just one of the many tasks they juggle. On average, a small business owner spends 5 to 10 hours per week managing their books. This time includes:

Recording daily transactions
Reconciling bank statements
Tracking expenses and income
Preparing invoices and following up on payments
Organizing receipts for tax purposes

For many owners, bookkeeping is a manual, time-consuming process. Without specialized training, they may spend extra time correcting errors or trying to understand accounting software. This can lead to frustration and less time available for core business activities like sales, customer service, or product development.

Factors That Increase Time Spent

Several factors can increase the time a small business owner spends on bookkeeping:

Lack of accounting knowledge: Without a background in finance, owners may need to research or learn as they go.
Complex transactions: Businesses with inventory, multiple revenue streams, or employees have more complicated records.
Infrequent bookkeeping: Waiting too long between updates can cause a backlog of work.
Manual processes: Using spreadsheets or paper records instead of automated software slows down the process.

How Professionals Handle Bookkeeping Efficiently

Professional bookkeepers are trained and experienced in managing financial records efficiently. They typically spend 2 to 4 hours per week on bookkeeping for a small business of similar size and complexity. Their expertise allows them to:

Use accounting software effectively to automate tasks
Maintain organized records that are easy to update and review
Quickly identify and correct errors
Stay current with tax laws and financial regulations
Provide timely financial reports that support business decisions

Professionals also benefit from specialized tools and systems that reduce manual work. For example, they often use bank feeds that automatically import transactions, saving hours of data entry.

Why Professionals Save Time

Experience: Years of practice mean fewer mistakes and faster processing.
Technology: Access to advanced bookkeeping software and integrations.
Focus: Dedicated time for bookkeeping without distractions from other business tasks.
Knowledge: Understanding of tax deadlines and compliance reduces last-minute work.

Comparing Time Investment: Owner vs Professional

| Task | Small Business Owner Time | Professional Bookkeeper Time |

|-----------------------------|--------------------------|-----------------------------|

| Data entry and transaction recording | 3-6 hours/week | 1-2 hours/week |

| Bank reconciliation | 1-2 hours/week | 30 minutes - 1 hour/week |

| Expense tracking | 1-2 hours/week | 30 minutes - 1 hour/week |

| Reporting and tax prep | 1-3 hours/week | 30 minutes - 1 hour/week |

This table shows that professionals can complete the same tasks in roughly half or less of the time it takes an owner. Over a year, this difference adds up to hundreds of hours saved.

Real-World Examples

Example 1: Retail Store Owner

Jane runs a small retail store and spends about 8 hours each week on bookkeeping. She manually enters sales data, tracks inventory, and reconciles bank statements. Jane often feels overwhelmed during tax season because her records are not always up to date.

Hiring a professional bookkeeper reduced her bookkeeping time to 3 hours per week. The bookkeeper set up automated sales tracking and monthly reconciliations, freeing Jane to focus on customer experience and inventory management.

Example 2: Freelance Graphic Designer

Mark, a freelance graphic designer, spends about 5 hours weekly managing invoices, expenses, and payments. He uses basic accounting software but struggles with categorizing expenses correctly.

A professional bookkeeper helped Mark set up a streamlined system and now handles most of the bookkeeping in 2 hours per week. Mark uses the extra time to take on more clients and improve his portfolio.

Benefits Beyond Time Savings

Hiring a professional bookkeeper offers advantages beyond just saving time:

Accuracy: Reduced errors mean fewer surprises during tax season.
Financial insights: Professionals provide clear reports that help owners understand profitability and cash flow.
Stress reduction: Owners can focus on growing their business instead of worrying about numbers.
Compliance: Staying up to date with tax laws avoids penalties and fines.

When Should Small Business Owners Consider Hiring a Professional?

Deciding when to hire a professional depends on several factors:

Time constraints: If bookkeeping takes more than 5 hours per week and interferes with business growth.
Complexity: Businesses with multiple income streams, employees, or inventory benefit from expert help.
Accuracy concerns: Frequent errors or missed deadlines signal a need for professional support.
Growth plans: As the business grows, bookkeeping demands increase and require more expertise.