Bookkeeping Side Hustle

The Money Mindset: How to Start a Bookkeeping Side Hustle

By starting a bookkeeping side hustle, not only can you earn extra income and have flexible hours, but you can also gain valuable skills and experience that could open up new opportunities for your future!

icon for representing bookkeeping

The Framework

Bookkeeping is an excellent side hustle for several reasons.

First off, it can be done remotely, meaning that you can work from anywhere with an internet connection. This flexibility is particularly appealing for those who have other commitments such as family or another job. Secondly, bookkeeping is in high demand, as every business requires bookkeeping services in some form. This means that there are plenty of opportunities to find clients and grow your business. Thirdly, bookkeeping is relatively easy to get started in, as you don’t need a lot of money or equipment to begin. All you need is a computer, accounting software, and some basic bookkeeping knowledge.

In addition to being a flexible and lucrative side hustle, bookkeeping can also be an excellent stepping stone towards starting your own full-time business. By building your skills and reputation as a bookkeeper, you can expand your services to include other financial tasks, such as tax preparation or financial planning. This can eventually lead to starting your own accounting or financial planning firm. Overall, a bookkeeping side hustle is an excellent opportunity for anyone looking to earn extra income, gain valuable experience, and potentially start their own business in the future.

Is a Bookkeeping Side Hustle Right for You?

Starting a bookkeeping side hustle can be an excellent way to earn some extra income, develop new skills, and gain valuable experience in the financial industry. However, like any business venture, it’s important to carefully consider whether it’s the right choice for you. Here are some of the pros and cons of starting a bookkeeping business, as well as some key factors to consider when deciding if it’s the right side hustle for you.

Pros and Cons of Starting a Bookkeeping Business

Pros:

  • Flexibility: A bookkeeping business can be run from anywhere and at any time, making it an ideal option for those who need to work from home or have other commitments.
  • High demand: There will always be a need for bookkeeping services, so there is potential for steady work and income.
  • Low startup costs: Starting a bookkeeping business typically requires minimal startup costs, as there is no need for expensive equipment or inventory.

Cons:

  • Time commitment: Bookkeeping can be time-consuming, especially during busy periods such as tax season.
  • Technical knowledge: Bookkeeping requires a certain level of technical knowledge and expertise, so you may need to invest in education and training to get started.
  • Liability: As a bookkeeper, you may be held liable for mistakes or errors in your work, so it’s important to have adequate insurance coverage.

How to Determine if Bookkeeping is the Right Side Hustle for You

If you’re considering starting a bookkeeping business, there are several factors to consider to determine if it’s the right side hustle for you. Here are some key questions to ask yourself:

  • Do you have an interest in finance and accounting?
  • Do you enjoy working with numbers and have a keen attention to detail?
  • Do you have the technical knowledge and expertise required to perform bookkeeping tasks?
  • Are you comfortable with the time commitment and potential liability that comes with running a bookkeeping business?
  • Do you have the motivation and drive to market your services and attract clients?

By answering these questions honestly, you can get a better sense of whether a bookkeeping side hustle is the right choice for you. If you have a strong interest in finance and accounting, enjoy working with numbers, and have the necessary technical knowledge and expertise, then bookkeeping could be an excellent side hustle for you. However, if you’re uncomfortable with the time commitment or potential liability, or lack the motivation to market your services, then it may not be the right fit.

Getting Started as a Bookkeeper

Bookkeeping is a great side hustle for anyone with an eye for detail and a love for numbers. But before you start your bookkeeping side hustle, there are a few things to consider. In this section, we will cover the steps to get started as a bookkeeper and the experience and education needed to become one.

How to Start a Bookkeeping Side Hustle

The first step to starting a bookkeeping side hustle is to assess your skills and experience. If you have a background in accounting, bookkeeping, or finance, you may be well-suited for this side hustle. However, even if you don’t have any prior experience, you can still start a bookkeeping side hustle by learning the necessary skills.

The next step is to choose a niche. You can specialize in a particular industry or type of business, such as e-commerce or real estate. This will help you focus your marketing efforts and establish yourself as an expert in your field.

Once you have determined your niche, it’s time to set up your business. You will need to register your business, create a business plan, and set up a website. You will also need to decide on your pricing structure, which we will cover in more detail later.

What Experience or Education is Needed to Become a Bookkeeper?

While you don’t need a formal education to become a bookkeeper, having a degree in accounting, finance, or business can be helpful. Additionally, there are many bookkeeping courses and certifications available that can teach you the necessary skills and provide you with the credentials to establish yourself as a professional bookkeeper.

Bookkeeping Educational Resources

If you’re interested in pursuing a bookkeeping side hustle but don’t have the necessary skills or experience, there are many educational resources available to help you get started. Online courses, such as those offered by Udemy and LinkedIn Learning, can teach you the basics of bookkeeping and accounting. You can also consider pursuing a certification, such as the Certified Bookkeeper (CB) designation offered by the American Institute of Professional Bookkeepers (AIPB).

Certifications Required to Become a Bookkeeper

While certifications are not required to become a bookkeeper, they can help you establish yourself as a professional and increase your earning potential. Some of the most popular certifications for bookkeepers include the Certified Bookkeeper (CB) designation offered by the American Institute of Professional Bookkeepers (AIPB) and the QuickBooks Certified User certification offered by Intuit. These certifications demonstrate to clients that you have the knowledge and skills needed to provide quality bookkeeping services.

Finding and Attracting Clients

One of the biggest challenges in starting a bookkeeping side hustle is finding and attracting clients. Here are some strategies to help you get started.

How to Get Your First Bookkeeping Clients

Getting your first few clients can be the hardest part of starting your bookkeeping business. Here are some tips to help you get your foot in the door:

  1. Reach out to your personal and professional network. Let your friends, family, and colleagues know that you are starting a bookkeeping business and ask them to refer clients to you.
  2. Join local business groups and networking events. Attend events where small business owners and entrepreneurs gather to meet potential clients.
  3. Offer a free consultation. To help build trust and establish a relationship with potential clients, offer a free consultation where you can discuss their needs and how you can help.

How Much Bookkeepers Typically Charge

The fees for bookkeeping services can vary depending on the scope of work and the level of experience of the bookkeeper. Some bookkeepers charge by the hour, while others charge a flat fee. According to a survey by Thumbtack, the average cost for a bookkeeper in the US is around $50 to $150 per hour.

Marketing Strategies to Attract Clients

In addition to personal networking and referrals, there are several other marketing strategies you can use to attract clients:

  1. Build a website. A professional website can help establish credibility and make it easier for potential clients to find you online.
  2. Leverage social media. Use social media platforms like LinkedIn, Facebook, and Twitter to promote your services and engage with potential clients.
  3. Attend trade shows and conferences. Attend industry events to network and meet potential clients.

Growing a Remote Bookkeeping Business

One of the advantages of a bookkeeping side hustle is that it can be done remotely, allowing you to work with clients from all over the world. Here are some tips to help you grow your remote bookkeeping business:

  1. Invest in online tools and software. Use cloud-based software and tools to help you manage your clients’ finances remotely.
  2. Focus on building strong relationships with your clients. Communication is key when working remotely, so make sure to check in with your clients regularly and be responsive to their needs.
  3. Consider outsourcing. If your business grows beyond your capacity, consider outsourcing some of your work to other bookkeepers to help manage the workload.

 

Running Your Bookkeeping Business:

Running a bookkeeping business requires more than just good bookkeeping skills. It involves handling client relationships, managing finances, and complying with tax laws and regulations. Here are some key areas to consider when running your bookkeeping business:

Protecting Your Bookkeeping Business:

Protecting your bookkeeping business involves safeguarding your clients’ confidential information and ensuring that you have the right insurance coverage. Some important steps you can take to protect your bookkeeping business include:

  • Keeping client information secure and confidential
  • Backing up data regularly to avoid data loss
  • Obtaining professional liability insurance to protect against potential claims from clients
  • Creating a privacy policy to outline how you collect, use, and protect client information

How to Grow Your Bookkeeping Side Hustle Business:

Growing your bookkeeping business can be challenging, but there are several strategies you can use to expand your client base and increase revenue. Some key strategies to consider include:

  • Offering additional services, such as tax preparation or payroll processing
  • Networking with other professionals, such as accountants or business consultants
  • Developing a referral program to encourage satisfied clients to refer others to your business
  • Investing in marketing, such as social media advertising or email campaigns
  • Offering competitive pricing and special promotions to attract new clients

Creating Financial Statements and Reports for Clients:

Creating financial statements and reports for clients is a crucial aspect of bookkeeping. It involves organizing financial data into clear, concise reports that clients can use to make informed business decisions. Some key reports you may need to create for clients include:

  • Profit and loss statements
  • Balance sheets
  • Cash flow statements
  • Accounts receivable and payable reports

Maintaining Accurate Financial Records:

Maintaining accurate financial records is essential for any bookkeeping business. It involves keeping track of all financial transactions, reconciling accounts, and ensuring that records are up-to-date and accurate. Some key tips for maintaining accurate financial records include:

  • Setting up a system for organizing financial data
  • Reconciling accounts regularly to ensure accuracy
  • Double-checking data entry for errors
  • Keeping all receipts and invoices organized and filed
  • Staying up-to-date with changes in tax laws and regulations

Ensuring Compliance with Tax Laws and Regulations:

Ensuring compliance with tax laws and regulations is critical for any bookkeeping business. It involves staying up-to-date with changes in tax laws and regulations, understanding tax requirements for different types of businesses, and ensuring that all clients are in compliance. Some key tips for ensuring compliance with tax laws and regulations include:

  • Staying up-to-date with changes in tax laws and regulations
  • Understanding tax requirements for different types of businesses
  • Keeping detailed records to support tax filings
  • Hiring a tax professional or accountant to assist with tax preparation and filing
  • Educating clients about tax requirements and deadlines