Some entrepreneurs who are not from a finance background often underestimate the importance of accurate bookkeeping. Those entrepreneurs find the hard way why one should hire a dedicated bookkeeper and not rely on just tools to handle books. 

For our readers, we make it easy by writing about it. 

When it comes to bookkeeping, there are plenty of services that let you manage your accounts using online tools and resources.  

However, a dedicated bookkeeper managing your books is not simply an accountant adding numbers. Bookkeeping services can save you taxes, lost revenue, and penalties or audits from the IRS. 

We at doola take total care of our clients by offering them comprehensive business management solutions.

Ranging from forming your U.S. company to managing your books, filing your taxes, and everything in between, we provide a complete set of tools and resources to run your U.S. business successfully and with ease.

Sign up today to get started. 

What Is Bookkeeping, and Can You Do It Yourself?

When you run a business and pay taxes, you need to keep a detailed record of your income and expenses. Bookkeeping is the process of recording and categorizing your income and expenses to track and analyze your accounts.

A bookkeeper is an accounting professional who does the actual tracking and categorizing and keeps detailed records of your business’s financial activities. 

The DIY approach to bookkeeping is not unheard of. Entrepreneurs often decide to manage their books. However, this comes at an opportunity cost, such as lost hours, lost savings, missed deductions, etc. 

What You Need to Know About DIY Bookkeeping

When you rely on DIY bookkeeping and manage your finances using software instead of hiring a dedicated professional, you open your business up to several risks that could lead to serious financial consequences over time. One of the most significant challenges is the lack of professional oversight. 

While bookkeeping software can handle routine tasks like data entry and tracking expenses, it cannot provide expert guidance on more complex financial issues, such as tax planning, cash flow analysis, and regulatory compliance. 

A professional bookkeeper can spot potential red flags early, such as inconsistencies in your financial statements or opportunities for tax deductions, something that software may miss without human expertise.

Moreover, DIY bookkeeping often leads to costly errors, especially as your business grows and your financial transactions become complex. Mistakes in data entry or categorizing expenses incorrectly may seem minor at first. Regardless, they can snowball into more significant issues like inaccurate financial reports, cash flow problems, or even penalties from tax authorities. 

Missed deadlines for tax filings or payments, another common issue with DIY bookkeeping can result in fines and added interest, further straining your business finances.

Another downside is the time commitment involved. Managing your books requires consistent effort and attention to detail. For a small business owner, this can become a time-consuming distraction from core activities like growing your business, managing operations, or focusing on strategic planning. 

The hidden costs of errors can quickly offset the money you save from DIY bookkeeping, missed opportunities for tax savings and the time lost on tasks that could have been handled more efficiently by a professional.

How Will Your Business Benefit From a Dedicated Bookkeeper With doola

From custom invoices to accurate financial management, doola’s bookkeeping services allow you to keep your books updated and up to the mark. We enable you to claim the maximum tax write-offs available to your business.

We also provide you valuable insights from your accounts, which helps you manage your finances better. Below is a detailed list of what you stand to gain when you choose doola’s bookkeeping services. 

✅ Tax Write-Offs: Maximize Your Deductions

Did you know that taxpayers can deduct up to $5,000 of startup costs and $5,000 of organizational costs in the year their business commences? To be eligible for these tax write-offs, these expenses must be appropriately categorized and recorded in your books. 

A dedicated bookkeeping team will ensure these costs are accurately accounted for, helping you take full advantage of tax deductions. They also ensure that you maintain all necessary receipts and documentation, which is crucial for compliance with tax regulations.

✅ Ongoing Bookkeeping Support

With doola’s dedicated team of Certified Public Accountants (CPAs), you’ll have ongoing bookkeeping support for transactions throughout the year. This includes the accurate categorization of all your business transactions, ensuring that your income and expenses are correctly recorded and classified.

We will reconcile your business’s bank and credit card accounts regularly and support unlimited accounts and revenue channels. This helps prevent discrepancies or errors in your financial statements.

✅ Streamlined Invoicing and Payment Collection

In addition to managing your books, doola’s bookkeeping services extend to invoicing and payment collection. They can help you create customized invoice templates and manage your client lists, allowing you to stay organized and maintain a professional image. 

Whether you need to set up recurring invoices or process payments, doola can integrate with merchant processing accounts such as Stripe, making it easy to collect payments directly through the invoices you send. This seamless integration not only saves you time but also ensures that all payments are tracked and reconciled efficiently.

Dedicated Bookkeeper vs DIY Bookkeeping: How Do They Stack Against Each Other?

Accuracy and Expertise

doola: With a dedicated bookkeeping team, doola ensures that your business transactions are accurately categorized, reconciled, and maintained. Experienced professionals handle tax write-offs, complex transactions, and industry-specific regulations, offering you peace of mind and precision.

DIY: While QuickBooks and similar software automate routine tasks, the responsibility for accuracy still falls on you. Without accounting expertise, there’s a higher risk of miscategorized expenses, missed deductions, and inaccurate financial reporting.

Time Commitment

doola: Our bookkeeping team takes care of everything, freeing up your time to focus on core business operations. With continuous support, you don’t need to worry about daily bookkeeping tasks like reconciliation, categorization, and tax planning.

DIY: Managing your books using QuickBooks can be time-consuming, especially as your business grows. From setting up accounts to daily tracking, entrepreneurs can lose valuable hours that could have been spent on scaling their business.

Cost and Value

doola: While hiring a dedicated bookkeeper may seem like a marginally higher upfront cost, the value lies in maximizing deductions, avoiding penalties, and saving time. Bookkeeping professionals also offer strategic insights that can help your business grow in the long run.

DIY: QuickBooks or other software generally has a lower upfront cost but can become expensive due to the hidden costs of missed deductions, errors, and the time you spend managing your books. Additionally, there’s no guarantee of expertise to guide your financial decisions.

Accountability and Support

doola: With a dedicated team, doola provides ongoing support and is fully accountable for your business’s financial health. We handle discrepancies, fix errors, and ensure compliance with tax authorities. In the case of a tax audit, you have our experts by your side to guide you through the process.

DIY: You’re on your own when it comes to DIY software. If mistakes occur or you’re audited, the responsibility lies with you, which can be overwhelming without proper accounting knowledge.

Handling Complexity

doola: Whether it’s setting up recurring invoices, managing multiple revenue streams, or reconciling numerous bank accounts, doola’s bookkeeping team can handle the most complex financial operations. They also provide customized reports based on your business’s needs.

DIY: While QuickBooks offers features to manage these tasks, it requires manual setup and ongoing management. As your business grows, handling multiple transactions, accounts, or international operations can become more complex and challenging without professional help.

Tax Compliance and Deductions

doola: Tax compliance is one of the most significant benefits of hiring a dedicated bookkeeper. They stay updated on changing tax laws, ensuring you take advantage of all available deductions and file your taxes correctly and on time.

DIY: Software like QuickBooks may help with tax filings, but personalized knowledge is needed to identify every deduction you’re eligible for. DIY bookkeeping also increases the chances of missing filing deadlines or making errors in tax compliance.

How doola Can Transform Your Books Into a Money-Saving Apparatus

At doola, our philosophy is to offer American entrepreneurship to every aspiring founder in the world. We offer world-class services, including tax management and bookkeeping along with company formation in the doola Total Compliance bundle. 

Our team of expert accountants and CPAs handles your books succinctly, organizedly, and methodically. This allows them to offer you insights on how to save taxes, when to look at cash flow, and what categories to create.

With a mindset of business-in-a-box, we offer holistic business management solutions catering to every administrative function you’ll require. Sign up today to straighten your books with expert bookkeeping solutions from doola.   

FAQs

What are the critical differences between doola and DIY bookkeeping software like QuickBooks?

The primary difference is that we offer a dedicated team of bookkeeping professionals who manage your finances with accuracy and expertise. At the same time, DIY software like QuickBooks requires you to manage everything on your own, often leading to errors and missed opportunities for tax savings.

Is hiring doola’s bookkeeping services more expensive than using DIY software?

While dedicated bookkeeping might have a higher upfront cost than DIY software, the value lies in the time saved, the prevention of costly errors, the maximizing of tax deductions, and strategic financial advice that helps your business grow. Over time, DIY software can result in hidden costs due to mistakes or missed savings opportunities.

Can doola handle complex financial operations like managing multiple revenue streams or international transactions?

Yes, our dedicated team can handle complex financial operations, including multiple revenue streams, international transactions, and recurring invoicing. They also provide customized financial reports tailored to your business needs.

How does doola help with tax compliance?

Our team stays updated on tax laws and regulations, ensuring your business takes advantage of all available deductions and remains compliant. We handle all aspects of tax preparation, filing, and documentation, so you don’t have to worry about missing deadlines or facing penalties.

Can DIY software like QuickBooks provide the same level of support during an audit?

No, DIY software does not provide personalized support during an audit. With doola, you have access to expert accountants and CPAs who will guide you through the process, fix discrepancies, and handle any audit-related issues, providing you with peace of mind.