Why Your First Hire Shouldn’t Be Your Bookkeeper — But You Need One Anyway

Your business is finally moving, with money coming in and transactions piling up. As your business activities increase, tax deadlines are also creeping closer. You’re spending nights sorting receipts, fixing invoice errors, and wondering: “Maybe I should just hire a bookkeeper in-house to handle this.”

It feels like the smart move — someone at the desk every day, on your payroll, doing nothing but your books. But for most early-stage businesses, hiring a full-time, in-house bookkeeper too soon can significantly strain your budget without obvious immediate benefits.

Outsourcing bookkeeping is smarter in the beginning — and it frees you to put your first hire where it counts: growing your revenue.

The Real Cost of a Full-Time Bookkeeper

An entry-level in-house bookkeeper can cost significantly more when you factor in payroll taxes, benefits, and training time.

Some business owners try to fill the gaps with admin tasks — but bookkeeping isn’t the same as general admin work. The skills don’t always overlap. In the end, you pay for idle hours or risk costly mistakes when that employee tries to do tasks they weren’t trained for.

Outsourcing Keeps You Lean — and Accurate

An outsourced bookkeeping firm costs a fraction of a full-time salary. Instead of paying for idle time, you pay only for what you need:

 ✅ Accurate transaction tracking

 ✅ Monthly reconciliation

 ✅ Clean reports for better decisions

 ✅ Tax-ready books, on time

 ✅ Consistent best practices from people who do this work every day

There’s no payroll tax, no benefits, no management overhead. And you’re not stuck finding extra work to keep an underused employee “busy.”

A Quick Rule of Thumb:

Not sure if you’re ready for an in-house hire? Here’s a simple way to think about it:

If you’re not handling at least 500–1,000 transactions per month, you probably don’t need a full-time bookkeeper on staff yet. Outsourced bookkeeping covers your real workload — and you can scale up when your business demands it.

But What About Special Cases?

Are there situations where an in-house bookkeeper makes sense? Sure. Larger firms with complex inventory, manufacturing operations, or government contracts may eventually need daily, in-house control. But for most startups and small service businesses under $2 million in annual revenue, you’re far better off outsourcing first — and investing that budget in growth.

A Quick Story: How Outsourcing Paid for Growth

We once worked with a founder who hired a junior bookkeeper too early. For months, they paid for idle time — the new hire didn’t have enough daily work. Worse, they made mistakes that cost the business in late fees.

When the founder came to us, we cleaned up their books and took over on a simple monthly retainer. The savings allowed them to hire a project manager, who directly generated more revenue and freed up their own time. That founder never looked back.

Your First Hire Should Help You Grow

Bookkeeping is essential — but it doesn’t need to be a full-time payroll expense before you’re ready. In the early years, every dollar matters. Your first hires should generate revenue, serve clients better, or strengthen operations — not just maintain your records.

Outsourcing bookkeeping lets you stay lean, organized, and confident — without carrying the cost of an underused hire.

If you’re evaluating your bookkeeping needs and considering whether it’s time to outsource or expand, let’s talk. At Blackfyre Ledger Systems, we help startups keep clean books, avoid costly surprises, and put your money where it makes the most significant difference: growing your business.

Ready to get the right help, at the right time? Reach out today.

© 2025 by Scott Denis. This work is licensed under CC BY-NC-SA 4.0.