Are You Overpaying? The Real Cost of Managing Business Finances
Let’s be honest: running a small business comes with a lot of hidden costs.
But one area that sneaks up on a lot of entrepreneurs? Managing your business finances.
Whether you're DIY-ing your bookkeeping, hiring a professional, or just winging it with a spreadsheet and crossed fingers, there’s a cost. And if you're not tracking that cost properly, you might be paying more than you think (in money and time).
So let’s break it down. Here's what goes into the cost of managing small business finances….and how to make sure you're getting the best return on every dollar you spend.
💼 The Three Ways to Manage Small Business Finances
There are generally three main approaches small business owners take when it comes to handling their money:
1. DIY (Do-It-Yourself)
You manage everything yourself: tracking income, expenses, taxes, and reporting.
2. In-House or Contracted Staff
You hire an in-house bookkeeper, accountant, or VA with financial experience.
3. Outsourced Bookkeeping Services
You partner with a remote bookkeeping service (like Breakspears Bookkeeping Services LLC) that handles everything for a monthly flat fee.
Let’s break down the real costs of each.
🧾 Option 1: The DIY Approach
💰 Direct Costs:
QuickBooks, Xero, or Wave subscription: $0–$90/month
Receipt scanning apps or mileage trackers: $10–$30/month
Your time: priceless… but not really
Let’s say you spend:
1 hour/week categorizing transactions
2 hours/month invoicing + chasing payments
2 hours/month preparing for taxes
That’s 6 hours/month x your hourly rate.
If your time is worth $75/hour, that’s $450/month in hidden costs - not including stress or mistakes.
⚠️ Common Risks:
Misclassified expenses = missed deductions
Late invoicing = delayed cash flow
Tax prep panic = missed deadlines or penalties
You’re flying blind with no accurate monthly reports
💡 DIY can be cost-effective at the beginning - but it’s not sustainable long-term if you want to grow.
🧍♀️ Option 2: Hiring In-House or Freelancers
💰 Costs:
In-house bookkeeper: $3,500–$5,500/month (salary + benefits)
Freelance bookkeeper or accountant: $40–$100/hour
Software still needed: $30–$90/month
✅ Pros:
High-touch support
Can work alongside you daily
Customizable tasks and hours
❌ Cons:
More expensive than outsourced options
Management overhead (training, oversight)
May still need a CPA for taxes
💡 This is ideal for larger or high-volume businesses, but overkill for many freelancers and solo business owners.
📦 Option 3: Outsourced Bookkeeping Services (Flat-Fee)
Outsourcing your bookkeeping to a remote service (🙋♀️ like ours) gives you:
Professional support
Transparent monthly costs
Software setup and integration
Monthly reports and cash flow clarity
💰 Typical Flat Fee Range:
$250–$500/month depending on transaction volume and services
Often includes: reconciliation, categorization, reporting, light advisory
✅ Pros:
You save 10–15+ hours/month
No payroll costs or contracts
No tax-time scramble
You gain clarity, consistency, and peace of mind
💡 At Breakspears Bookkeeping Services LLC, our clients tell us the cost is a fraction of what they were losing in time, mistakes, and missed opportunities.
🧠 What You Really Pay for When You Manage Finances Poorly
If you're doing it yourself, or not doing it at all - you're probably paying more than you realize. The real costs of poor financial management include:
Overpaying taxes (missed write-offs)
Late fees or penalties
Stress and burnout
Unpaid invoices
Missed growth opportunities (because you didn’t know what you could afford)
The truth is: you either pay to stay organized—or pay to clean up the mess later.
📈 How to Make Financial Management Affordable and Effective
To get the best value out of what you spend, follow this checklist:
✅ Use bookkeeping software (QuickBooks, Wave, or Xero)
✅ Separate business and personal accounts
✅ Set aside 20–30% for taxes monthly
✅ Run monthly reports (P&L, cash flow)
✅ Know when to delegate
✅ Choose a support system (DIY, hire, or outsource) based on your stage of business
💡 If you’re spending 5+ hours/month on your books, it may be time to outsource.
💬 Final Thoughts: Pay Less by Managing Smarter
You don’t have to overspend to get help. You just need to understand the true cost of managing small business finances - and make choices that align with your time, growth goals, and peace of mind.
At Breakspears Bookkeeping Services LLC, we offer affordable, remote bookkeeping services for freelancers and small business owners who are ready to ditch the chaos and finally feel in control of their numbers.
📌 Want to Know If You’re Overpaying?
Let’s run the numbers. We’ll show you exactly how much time and money you could save with a flat-fee monthly package.
👉 Explore our services or book a free discovery call today.
