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How Much Time Should Small Business Owners Spend on Accounting?

February 6th, 2024 | 3 min. read

By Bryan Cremeen

Small business owners who do their own accounting may pat themselves on the back for saving money, but sometimes they wonder if it’s worth it. 

How much time spent on accounting each month is too much before it makes more sense to outsource it to professionals?

CSI Accounting & Payroll has done monthly accounting for small businesses for over 50 years, and we often get asked the following questions by prospective clients:

  • How many hours per month does accounting take?
  • What is the value of my time?
  • When is it better to outsource accounting than to do it myself?

How Much Time Accounting Takes

On average, small businesses that suit our client base usually take between 10-15 hours of bookkeeping each month. If they also handle their billing in-house, it can take up to 25 hours per month. 

This doesn’t include any additional time that it would take to go back and fix errors, and it also doesn’t include the time it takes to handle your taxes.

We find that people with bookkeeping experience are more efficient, generally taking about 30 percent less time than someone who is inexperienced.

The Value of Business Owners’ Time

As a business owner, your time is worth a lot.

You still want to maintain personal time outside of work, which small business owners tend not to prioritize. You also have a lot of value that you can add to your business if you spend your time in the right areas instead of accounting.

Do you ever think about how much you get paid for each hour of work?

When Outsourcing Accounting Is Better

In many instances, three to five hours of accounting per month is the point when you may want to outsource, provided your business is ready to work with an accountant. But when do you need to?

Well, if you factor in your hourly pay and the number of hours that accounting takes you, is the result reasonable? It’s time to outsource your accounting when this formula is true:

The value per hour of your time * The number of hours spent on accounting > The cost of an accounting service

If you’re using CSI in the equation above, plug in our monthly accounting fee. It varies based on several factors, but it ranges from $600 to $1,000+ per month and averages $750 per month. Find your custom estimate with our calculator by clicking the image below!


Outsource Accounting and Reclaim Your Valuable Time

Now that you know how long accounting takes per month, what your time is worth, and how much time is too much time to spend on your accounting, are you ready to check out monthly accounting services?

If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation:

Not ready to talk? That’s okay! First, learn more about what it’s like to work with CSI by clicking the image below:

Bryan Cremeen

Bryan served as our Accounting & Tax Department Manager from 2019 to 2024. He earned his Accounting degree from St. Cloud State University in 2001, later becoming an Enrolled Agent. Before joining CSI, Bryan worked in financial reporting for the State of Minnesota, served as a Controller in private industry, and owned his own firm – AccountSource LLC – from 2005 until 2019 when it was acquired by CSI. In 2024, he stepped away to support his sister’s business during a time of serious illness – a true reflection of his character and commitment to family.