DIY Bookkeeping: The Good, The Bad, and The Ugly
- Marketing Manager
- Jul 28
- 2 min read
Running a business means wearing a lot of hats — CEO, customer service, marketing... and sometimes, bookkeeper. For many small business owners, especially in the early days, handling your own books feels like the smartest, most cost-effective choice.
And to be fair — sometimes, it is.
But before you commit to DIY bookkeeping for the long haul, here’s a breakdown of the good, the bad, and the downright ugly side of keeping your own books (with some honest truths from behind the spreadsheets).
The Good: Control, Cost Savings & Clarity
Doing your own books puts you in the driver’s seat. You know where your money is coming from, where it’s going, and you stay close to the day-to-day flow of your business.
Other wins:
No extra cost — at least, not upfront.
You gain a deeper understanding of your numbers.
You can customise how things are tracked — to a point.
If you’re a sole trader with a handful of transactions per week, DIY might actually make sense. Tools like Excel, Xero, or QuickBooks can make basic tracking doable.
But...
The Bad: Time-Consuming, Confusing, and Easy to Get Wrong
Bookkeeping is more than just tracking income and expenses. It involves reconciling bank statements, separating personal and business expenses, and understanding compliance requirements like GST, BAS, super, and payroll reporting.
Here’s where things start to get tricky:
Time drain: You're losing hours that could be spent growing your business.
Misclassification: Mixing up asset purchases with expenses? You’re not alone — and it can cost you at tax time.
Missed deductions: You might be leaving money on the table without even knowing it.
Let’s not forget the headache of BAS preparation or the ATO’s ever-changing compliance rules. One wrong click and suddenly you’ve over-reported income or missed a deadline.
The Ugly: Penalties, Stress & Sleepless Nights
This is the part no one talks about.
DIY bookkeeping can come back to bite you — hard. Think:
Late BAS lodgement penalties
Super underpayment issues
Inconsistent cash flow tracking
Tax return errors that trigger ATO reviews or audits
We’ve had clients come to us with months (or years) of mismatched data, unreconciled accounts, or incomplete records — and they didn’t realise until it was too late.
So… Should You DIY?
Here’s the deal:
DIY bookkeeping is fine when your business is simple and you’re confident with numbers. v
But as soon as you scale, hire, or start juggling more than one income stream? It might be time to hand it off.
And no — outsourcing doesn’t mean losing control. It means gaining clarity, consistency, and confidence.
What We Recommend
Whether you’re DIY-ing or ready to delegate, ProfitCloud has flexible options:
Monthly Bookkeeping Services (for stress-free numbers)
ASIC Agent Support and BAS lodgement help (because compliance shouldn't be complicated)
You can start small and scale your support as your business grows. We’re here to help you get it right — before it gets ugly.
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