How Accountants Can Start a Bookkeeping Side Hustle from Home

How Accountants Can Start a Bookkeeping Side Hustle from Home

Bookkeeping is a major aspect of modern civilization even though it seems to be reserved for trainees and young accountants. However, two things are certain, no matter what business you do—you’ll make money and you’ll spend money. Bookkeepers keep track of both (cash inflows and outflows).

As an accountant, bookkeeping is a skill one can broaden and monetize on a private level. Bookkeeping is often referred to as “Old-School” accounting despite being the bedrock of modern accounting, because it seems basic and easy to learn.

Many small business owners juggle with operational tasks to the point they get overwhelmed. Many entrepreneurs undeniably need these service in its basic form to get going. And the bookkeeping service is what you can develop and package well for clients to purchase.

In the article, I’ll be sharing insights with my little experience in accounting, how you can tap into the often neglected field of accounting and make extra income from the comfort of your home.

Key Highlights

 🎯 Starting a bookkeeping side hustle does not necessarily require that you become a Certified Public Accountant; however, having some certifications would be ideal to build trust.

 🎯 Accountants are expected to see a 6.9 percent increase in employment between 2020 and 2030, according to the Bureau of Labor Statistics.

 🎯 Over the next ten years, there are expected to be, on average, 136,400 openings for accountants and auditors.

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 🎯 You’ll cover more ground by advertising your bookkeeping services to a larger, local, and global audience by using standard social media platforms like Google+, Facebook, Twitter, LinkedIn, and Yelp.

 🎯 By joining the local Chamber of Commerce, you can make connections with potential customers quite effectively

SEE ALSO: How Much Do Bookkeepers Charge for Start-Up Businesses?

SEE ALSO: How a Certified Public Accountant Can Run a Successful Bookkeeping Business

Bookkeepers vs Accountants: Any Difference?                      

Bookkeepers, like accounting and auditing clerks, keep financial records for organizations. They keep track of financial transactions, update financial statements, and check the accuracy of financial records.

An accountant, on the other hand, gathers, monitors, and makes corrections to the company’s financial records to assist firms in making significant financial choices. Accountants prepare management accounts and financial statements for their respective organizations.

Accountants are in charge of handling bank statement reconciliations, financial audits, and making sure of the year-round accuracy of financial records. So, accountants have more responsibilities to take care off as far as this subject is concerned.

Bookkeeping as a Side Hustle For Accountants

The potential for development and career opportunities in accounting are undeniably enormous and rewarding.

The number of accountants is expected to rise by an average of 6.9 percent between 2020 and 2030, according to the Bureau of Labor Statistics. There should be about 96,000 new employment opportunities available in the United States throughout that time.

According to estimations, the employment of auditors and accountants will increase by 6% between 2021 and 2031, which is approximately average for all occupations.

Furthermore being an accountant gives you an edge already over non-accountants in terms of bookkeeping and other specialized areas such as taxation and auditing.

You have already earned the knowledge and experience to handle such business-related matters. However, here are some helpful tips on how to start a bookkeeping side hustle from home.

1. Upgrade & Get Certified with Relevant Bodies

Even if you’re not aiming to become a Certified Public Accountant (CPA) to launch a bookkeeping company, you need at the very least, the fundamentals of accounting.

Most likely, your local community college or other technical schools should provide a wide range of courses in topics like double-entry bookkeeping, accounts auditing, and putting together financial reports.

In addition to getting skilled in accounting basics, it’ll be an added advantage to educate yourself on tax regulations, and other general accounting principles.

Getting professional training would set you on a part to earning an associate’s degree in Certified General Accounting from prestigious institutes like the American Institute of Professional Bookkeepers. After all, these certifications would open doors and get prospects to pay attention to you.

2. Choose Your Accounting Niche

There are 8 broad accounting types which are:

• Managerial Accounting

• Cost Accounting

• Financial Accounting

• Tax Accounting

• Risk-based Auditing

• Public Accounting

• Forensic Accounting

• Government Accounting

Choose an aspect of accounting and focus to become a professional in that area. Since we are talking about bookkeeping, you can provide this service with some creative and personal touch that your clients will keep coming back.

For instance, you might be an expert in computing company taxes for small businesses., payroll auditing, or as simple as handling the books for particular kinds of firms.

So, wherever your strengths lie, make sure to have a well-thought-out plan before starting your business.

3. Setup a Professional Workspace

You definitely will need to spend a lot of time in front of your computer running your bookkeeping side hustle gig. Making some investment in some home office furniture wouldn’t be a bad idea if you have the budget for it.

Since you’d be spending long hours at your desk, it’s best to make your home office comfortable for you. If you don’t have funds to invest, a table and a chair would be the basics you need to get started.

Work tools will include a desktop,  or laptop with dependable backup hardware if you want physical storage or go for Amazon services, or other google drive cloud platforms for free.

You also need to acquire specialized bookkeeping software, such as Sage 50 or Quickbooks. MS Excel Worksheets, and other templates.

4. Making a Good First Impression

Getting your first few customers is usually the turning point of your business idea.

Working for free or at a significant discount for friends, family, and community organizations is one proven way to break into the field.

To boost your confidence and gain more ground, establish a network with existing accounting businesses that can direct you toward some easy pickings.

Promote your bookkeeping services to them and offer them as an add-on service to their existing offerings. With this strategy, you’d be sure to leverage the bigger business’s clientele while offering them some benefits, in the end, everybody wins.

5. Promote the Heck Out of Your Services

As you begin to gain some footing due to tasks or projects you’ve completed successfully, your portfolio and name begin to get out there. But, this is not the time to relax, you need to push by promoting your business further virtually and physically.

To encourage word-of-mouth promotion, keep networking with nearby CPAs, accounting firms, and small company owners.

Tell your prospects about your new bookkeeping service and how you’ve used it to help many small businesses with proof or reviews from your clients. Genuine social proof goes a long way and it helps establish your authority in your field.

Also, establishing connections with potential customers can be accomplished quite effectively by joining the local Chamber of Commerce.

Additionally, you need to create social media pages and advertise your bookkeeping services to a larger local audience by using standard social media suspects like Google+, Facebook, Twitter, LinkedIn, and Yelp.

6. Become a Freelance Bookkeeper

To broaden your reach, you can explore online marketplaces such as UPWORK, FIVERR, and FREELANCER.COM.

It’s no longer news that there are a lot of opportunities in the online space and many people are making quite a fortune out of it daily. As such you must look in this direction if you want to make more out of your side hustle.

You already have the experience and required tools to pursue your bookkeeping business. All you need do is sign up for a seller account on any of the many freelance platforms. Once you’ve signed up and created your account, you can display your services to get your customers.

7. Organizing Your Business and prepare to scale

To take your business to the next level, you’ll need to take care of some standard paperwork once you’ve chosen a market niche in bookkeeping and developed some talents.

Register your new business with the local government, set up an LLC or subchapter S corporation, and obtain an EIN if you intend to hire staff in the future.

If you want to prepare tax returns, getting a Preparer Tax Identification Number, or PTIN is ideal.

After you have all these sorted out, start training or coaching those passionate about bookkeeping. You can eventually decide to build a team of virtual or onsite bookkeeping trainees who will assist you grow your business.

SEE ALSO: 12 Lucrative Side Hustle Ideas Accountants Can Do At Spare Time

SEE ALSO: 30 Brilliant Side Hustles Compatible While Working Full-time

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Final Thoughts

Bookkeeping is a business that will be evergreen and will always be needed in all spheres of life. It is also financially rewarding if it runs well.

One important tip for starting and sustaining the bookkeeping business is to keep up with the latest industry trends, policy changes, and regulations. Attend events like accounting conferences and networking gatherings.

Instead of focusing on new chasing clients only, you should focus on expanding your network and seeking to improve on your expertise.