Why North American Small Businesses Should Use Managed Bookkeeping Services
Running a small business is tough. You wear many hats such as sales, service, marketing, and more. But managing your books? That’s a whole job on its own.
If you’re struggling to stay on top of your finances, you’re not alone. Many small businesses in the U.S. and Canada struggle with financial management, often without realizing bookkeeping is the root cause.
Managed bookkeeping services help business owners stay organized, reduce stress, and improve survival rates.
📊 Small Business Survival by the Numbers (U.S. & Canada)
There are 34.8 million small businesses in the U.S. and they make up 99.9% of all businesses. Most, around 82% of U.S. small businesses are run by solopreneurs or freelancers earning around $50,000 per year. Many (about 60%) still use cash or checks, which makes good bookkeeping even more important.
In Canada, small and micro businesses make up 99.8% of companies. One in three workers are in businesses with fewer than 20 employees. Digital payment use is growing, but 35% still rely on old-school methods like cash and checks.
Retail, food, and other service industries grow fast, but they also shut down fast. Often, these businesses start from a place of passion or skill but lack the systems to grow or survive long-term.
Why Small Businesses Struggle Financially
Here’s the hard truth: nearly half of all small businesses shut down in the first five years. In Canada, it’s around 42%. Why?
- 📉 Poor cash management: Many still rely on cash or checks, which are harder to track
- 🕳️ No financial reporting: They don’t know if they’re profitable—or losing money
- 🧾 Mixed personal/business expenses: Creates chaos come tax time
- 🏦 No credit building plan: Makes it harder to secure loans when needed
- 📚 Low financial literacy: Owners struggle to interpret their own numbers
- 🛠 Distractions: Founders focus on their craft, not their cash flow.
- 📛External Shocks: Recessions, inflation, new rules, or disasters hit harder when books are messy.
- 💸Lack of Funding: Without strong financials or credit, getting a loan is tough.
Many entrepreneurs start with a skill, not a system. The passion is there, but the financial side gets messy fast.
Can Better Bookkeeping Help My Business Survive?
Yes! By giving you better control and better insights. Here’s what successful business owners do differently:
✅ Good Habits That Help You Win:
1. Build a Solid Business Plan
- Know your costs, your target customer, and your path to profit
2. Sharpen Your Marketing
- Be where your audience is. Use social media, word-of-mouth, and local events. Know your ideal customer and your competitors
3. Boost Your Business Credit
- Pay bills on time. Borrow smart. Set payment reminders and track invoices closely. This helps you grow when opportunity knocks.
4. Organize Your Finances
- Use cloud accounting tools (like Wave, QBO, or Xero). Keep business and personal transactions separate
5. Stay on Top of Your Numbers
- Review your financial reports monthly.
- Look for trends in income, expenses, and cash flow.
Financial clarity helps you make smarter choices—when to spend, when to save, and when to pivot.
Why Managed Bookkeeping Works
Managed bookkeeping means outsourcing your financial recordkeeping to a professional. Instead of doing everything yourself, a bookkeeper:
- Tracks your income and expenses
- Reconciles accounts
- Prepares financial reports
- Organizes documents for tax time
- Ensures your numbers stay clean and current
Hiring a managed bookkeeping service isn’t just about saving time. It’s about peace of mind.
You get:
- Accurate, timely financials
- More time to focus on your core business
- Clear insights to make better decisions
And you avoid:
- Late fees
- Tax filing headaches
- Costly mistakes
This frees you up to focus on running your business while your finances stay in good shape.
Should You Hire a Professional Bookkeeper or Go DIY?
DIY bookkeeping may work early on, but it’s easy to fall behind.
| DIY | Managed Bookkeeping |
|---|---|
| Free or low cost | Monthly service fee |
| Time-consuming | Time-saving |
| Prone to errors | Accuracy + consistency |
| You do it all | You delegate to a pro |
If bookkeeping is stealing time from your actual business or making you second-guess your numbers, it’s time to get help.
How Sumwise Bookkeeping Supports Small Businesses
At Sumwise, we help North American entrepreneurs take control of their books without the overwhelm.
We help you:
We don’t replace your accounting software. We make it work for you. We help you grow confidently with clean data and clear insights.
✅ Free Checklist: Are You Ready for Managed Bookkeeping?
These are the most crucial items you need to be doing on a regular basis for proper managed business books. Go through this checklist to evaluate whether you’re currently managing your books fine DIY or if you are ready to delegate:
Final Thoughts
Let bookkeeping be your decision-making backbone. If you’re a small business in North America, managed bookkeeping can save time, reduce risk, and make your next business move smarter.
Need help organizing your books?
Let Sumwise take bookkeeping off your plate so you can focus on what you do best.
