When a Founder Should Stop DIY Accounting
Many founders start by doing their own accounting. It makes sense—you're bootstrapping, you understand your business, and accounting software makes it seem straightforward.
But there comes a point when DIY accounting becomes a liability, not an asset. Here's how to recognize that point.
The Early Stage: DIY Makes Sense
In the earliest stages, doing your own books can work:
- You have few transactions
- You understand every line item
- Your time is more valuable elsewhere, but you don't have the cash to outsource
- You're learning your business by touching every part of it
At this stage, DIY accounting is often the right call.
The Warning Signs
You've outgrown DIY accounting when you notice:
You're spending too much time on it: If bookkeeping is taking 10+ hours per month, that's time you should be spending on growth.
You're not confident in your numbers: If you're not sure your books are right, they probably aren't.
You're missing deadlines: Monthly closes are slipping, tax deadlines are stressful, financial statements are late.
You're making mistakes: Transactions are miscategorized, reconciliations don't balance, you're not sure about accruals.
You can't answer questions quickly: When investors, lenders, or advisors ask financial questions, you're scrambling.
You're avoiding it: If you're procrastinating on bookkeeping, that's a sign it's become a burden.
The Cost of Waiting
Many founders wait too long to hand off accounting. The cost isn't just the time you're spending—it's the opportunity cost.
Strategic time lost: Every hour on bookkeeping is an hour not spent on sales, product, or strategy.
Decision quality: When books are messy or late, you're making decisions with incomplete information.
Stress and distraction: Financial uncertainty creates mental overhead that affects everything else.
Reputation risk: Late or inaccurate financials damage credibility with investors, lenders, and partners.
Making the Transition
When you decide to hand off accounting, do it properly:
- Find the right fit: Look for someone who understands your business model and your stage.
- Set clear expectations: Define what you need, when you need it, and how you'll communicate.
- Provide context: Share your business model, key metrics, and what matters most to you.
- Stay involved: You don't need to do the work, but you should understand your numbers.
The Right Time
There's no universal rule for when to stop DIY accounting. But if you're seeing multiple warning signs, it's probably time.
The best founders know when to let go. They recognize that their time is better spent on strategy, sales, and product—not on categorizing transactions and reconciling accounts.
If you're spending more time on accounting than on growth, you've crossed the line. It's time to hand it off.