DIY Bookkeeping vs. Hiring a CPA: Why Doing It Yourself Costs More Than You Think

Many small business owners — from YouTubers and Shopify store owners to dentists and TikTok creators — often think:

“Bookkeeping isn’t hard. I’ll just do it myself.”

But what seems like a cost-saving move almost always becomes an expensive mistake. The truth is, DIY bookkeeping costs more in the long run — in missed deductions, wasted time, and even IRS penalties.

The Hidden Costs of DIY Bookkeeping

When you handle your own books, here’s what often happens:

• Missed deductions
  • A YouTuber might forget to deduct part of their home studio setup.
  • A dentist may overlook Section 179 equipment depreciation on new dental chairs.
  • A Shopify store owner may forget about advertising expenses that qualify for write-offs.
• Messy or incomplete records
  Poor recordkeeping is one of the biggest IRS audit triggers. Fixing messy books at year-end can cost thousands in cleanup fees.
• Penalties & interest
  Missing deadlines with the IRS or California Franchise Tax Board leads to late filing penalties, underpayment penalties, and interest.
• Wasted time
  Every hour spent categorizing receipts or reconciling bank accounts is time not spent growing your business. For many of our clients — creators, professionals, and local businesses — that’s $200–$500/hour of lost opportunity.

IRS & California Compliance Risks

California is particularly strict with recordkeeping. If you’re an Amazon business owner or dentist in Los Angeles, the Franchise Tax Board (FTB) can request years of transaction history in an audit. DIY bookkeeping often fails to meet compliance standards — putting you at risk for:

• Additional taxes owed after audit adjustments.
• Disallowed deductions (because receipts weren’t properly documented).
• Interest and penalties compounding year after year.

A CPA for Online Commerce or Dental Business CPA knows how to keep books audit-ready.

When Should You Outsource Bookkeeping?

So, when does it make sense to stop DIY and bring in a professional? Consider outsourcing if:

• Your business earns more than $100,000 in annual revenue.
• You run payroll for yourself or employees.
• You collect and remit sales tax (Shopify, Amazon, or other e-commerce).
• You’ve received a 1099-NEC or W-2 combination and need accurate tracking.
• You’re planning major tax strategies, like S-corp elections or retirement contributions.

At this point, bookkeeping is no longer a “side task” — it’s a core financial system that needs expert attention.

Example: Imagine a Shopify store owner who earns $250,000 a year in revenue. She decides to “save money” by doing her own books. At tax time, she overlooks $20,000 in deductible expenses (ads, software, inventory costs). That mistake alone costs her around $6,000 in extra taxes. Add in 200 hours of her own time wasted on bookkeeping, and the “savings” don’t look so smart anymore.

By contrast, outsourcing bookkeeping to a Shopify Store CPA would not only save her the $6,000 in taxes but also free her time to grow her store — potentially adding another $50,000 in sales.

Bottom Line

If you’re still doing your own bookkeeping, it’s time to rethink the cost. For YouTubers, Shopify owners, Amazon sellers, dentists, and other small business owners, professional bookkeeping means more savings, more time, and more growth.

💡 Don’t view bookkeeping as an expense — treat it as an investment in your business success.

For more information about our tax planning services, contact us today: visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org