Do you think you would have a knack for virtual bookkeeping, but just don't know how to get started?
Do several of these bullets describe you?
- You like details and being organized.
- You have a heart for helping people succeed.
- You want a business that you can do from home and mostly on your own time.
- You aren’t afraid of numbers (though this is by no means rocket science level math).
- You secretly get excited when you do your own taxes every year.
- You want to bring in extra income.
- You have always wanted to work for yourself.
- You want a great, portable business that is based on recurring clients (not constant sales).
If these bullets describe you, the most wise use of your time would be to read my eBook The Bookkeeping Side Hustle Guidebook: Actionable Steps To Become a Virtual Bookkeeper Without the Overwhelm and get right to the main points. I break things down into 4 broad steps. But, if I haven’t build your trust yet, read on here and you’ll still get a lot of the basic information.
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Bookkeeping isn’t for everyone. And this is not a way to get rich quickly. And it is most certainly not passive, well at least it isn’t at first (perhaps you could build a giant firm and have a manager that runs everything and you take a share of the profits, but that is a ways down the road).
But if you saw yourself in those bullets above, then I can point you in the right direction. Keep reading. And also find lots of like-minded folks at The Bookkeeping Side Hustle Group.
Step 1: You have to learn accounting
Please, Please, PLEASE do not try to be a bookkeeper until you know what a debit and credit are. Do not become a bookkeeper if you don’t understand the equation
A = L + OE
If that equation above looked like a typo to you, just slow your roll and tell yourself NOW that you are going to be playing the long game. But this just might be the game you need to play.
YOU CAN LEARN THIS
People go through lots of study to learn this field. It is a real and valuable skill. And succeeding in business is hard. (Anyone else wanting to wanting to go back and re-watch Tom Hanks in “A League Of Their Own”?)
Are you ready to work hard and learn accounting? You can do it! Stick around this site and you’ll learn. I’ll give you some ideas on how to learn accounting.
Take A Course
This comment is an update to this article in February 2020. I’ve learned about a lot of different courses, many of which actually do teach accounting. I suggest reading this article if you want my theory on how you would decide on a course.
One way to learn accounting and bookkeeping concepts is to take a course called Bookkeeper Launch (formerly Bookkeeper Business Launch). This course even offers a rigorous Certificate of Completion for the accounting skills portion of the course to prove to yourself and your clients that you know accounting. Passing those exams give you confidence that you really do know a real, marketable skill that will bring value to the clients you serve. This course can take you from zero to success, like it did for this person.
One last comment about Bookkeeper Launch. This might be the most important sentence on this page. If you want to get the best high-level overview of what VIRTUAL bookkeeping is, how it works, what you need, what start-up costs are, YOU NEED TO WATCH THE 3 FREE VIDEOS from Bookkeeper Launch.
Grab a glass of wine this weekend and watch them. And then quickly move on to another industry to get hustling in if the videos don’t resonate with you.
Self Taught
Are you disciplined or resourceful enough to learn on your own? You can teach yourself.
Books – You can go old-school paper and pen style. The Schaum’s Outline of Bookkeeping and Accounting, Fourth Edition 4th Edition is a great comprehensive workbook.
AccountingCoach.com is for those of you who like to learn on a computer. They have so many free lessons. SO MANY. You can also pay for a membership for $49 or $99 dollars to get some more premium study materials. They have a military discount program, too.
Accounting Courses
Intuit Academy: In Fall 2022, Intuit launched Intuit Academy which offers 16 modules and a badge you can earn. Intuit Academy will teach the foundational skills to prepare you to be a remote QuickBooks Advisors.
Your local Community College – If you prefer the traditional education setting, you can always look at your local college. Note, I don’t typically recommend this path unless you have a personal goal to receive a college degree. If you already have “checked that box” of #LifeGoals in another discipline or if you don’t care about the official sheepskin, then steer clear of the college courses. They take a long time. They are quite theoretical. They don’t teach you enough about modern bookkeeping software OR about how to be a small business owner. And unless you go all the way through (which usually includes taking English, history, etc) you still don’t end up with the credentials that actually equip you to do your job.
My own personal MINIMUM standard for you to apply to yourself about whether you know enough accounting to start serving clients is if this “accounting cheat sheet” mousepad (or sticker) makes sense to you. If it doesn’t, please don’t take on clients yet.
FYI, you can get one of these nerdy mousepads at The Bookkeeping Side Hustle Store.
If you appreciate this site, you can buy me a virtual “coffee”. I’ll toast to you when I drink it! Thanks!
Step 2: You have to learn accounting SOFTWARE
Once you know accounting, you also have to learn about accounting SOFTWARE. They are all different. All have different places to click. There is Quickbooks, Xero, Freshbooks, Sage, Wave, etc. My recommendation for SOLO-PRENEUR style side-hustlers is to stick with one as you get started. Personally, I only use Quickbooks Online (which is different than Quickbooks Desktop).
Take A Course
No surprise, the way I learned bookkeeping software was within the course I took called, Bookkeeper Launch. Can’t recommend it enough. You will definitely learn the accounting software and so much more. You’ll learn about a TON of virtual software to help you build a virtual business.
But all the bookkeeping courses out there are going to teach you how to use the software. I am an expert in the different courses, so reach out to me if you get lost in this website searching for all the reviews and interviews I’ve done about the different course options.
Another thing you can do in a weekend is to get your Quickbooks Online ProAdvisor Certification. It is FREE! You basically have to learn the software to pass the tests. They have their own training (not any where close to as good as Bookkeeper Launch or other courses from many of the JOCKS who actually have businesses and training companies in QBO). If you aren’t willing to get certified in a software, I’d say you probably aren’t serious about having your own bookkeeping biz/side-hustle. You will be able to charge more with certifications. If you are a job-seeker seeking a sub-contracting job, you won’t get past the front door if you don’t have software certifications.
When you are ready to sit for your exams, follow my advice in this article to pass your tests.
So Xero is a fast moving and cutting edge double-entry accounting program. It is a direct competitor of QuickBooks Products, but it has only ever been ALL online. Become a Xero Advisor and you will by definition know Xero.
Pro Tip! Another way to develop an expertise in Xero is to follow everything that Amanda Auguilard does. Including buying her Xero “textbook”.
Follow Hector Garcia, QuickBooks Expert
Search Hector Garcia’s YouTube Channel or his QuickBooks Power User Facebook Group he runs with Michelle Long for QuickBooks questions or general accounting concept questions. He is my go-to guy if I have a question about QuickBooks, but he is an expert accountant in general, so he has a lot of material that will be good to the new bookkeeper trying to solidify concepts in his/her head.
Step 3: You Need To Know How To Start A Bookkeeping Business
You will also need some basic info on starting a business. You know, formation, taxes, sales, marketing, etc. These concepts can really be applied to the freelance sub-contractor, too. You need to know how to market yourself. Think of yourself as your own little business entity. Instead of marketing directly to small business owners who need bookkeeping, you market yourself to CPAs and larger bookkeeping operations who need staff.
Side-Hustle Nation— So I have lots of thoughts about Side-Hustle Nation. I’m basically a Super Fan. I think if you dive into Nick Loper’s material, your mind starts to shift. I am particularly partial to his podcast. I challenge anyone to listen to his podcast for a month and not be inspired to start some sort of side-hustle. His material is so diverse (actually, I’ve never heard anything about bookkeeping), but underneath most businesses are the same basic foundations. Give it a listen regularly for 3 months and tell me if you haven’t been inspired and are on the Side-Hustle path in some way. He also has some print resources to check out. Titles like:
- Work Smarter: 500+ Online Resources Today’s Top Entrepreneurs Use To Increase Productivity and Achieve Their Goals
- The Progress Journal: A Simple Daily Planner to Make Meaningful Progress on Your Most Important Work
- The Small Business Website Checklist: A 51-Point Guide to Build Your Online Presence the Smart Way
US Small Business Administration— The US government Small Business Association puts out timely material to help budding entrepreneurs. You can learn how to write a business plan, find a mentor from a local or regional chapter, and they have an entire “learning center” where you can find tons of basic business courses.
Local Chamber of Commerce chapter — Many communities have Chamber of Commerce Chapters that whose purpose is to help develop small businesses in that local community. Some have dues. Some have luncheons. Some might put on happy hours. And some might be full of weirdos. You won’t know until you check it out. Can’t hurt to investigate your local chapter.
SCORE – The intro page of their website says the following:
So sign up and get some great, free mentorship and access to lots of local learning opportunities.
Step 4: Find Your First Client
Almost without question, your first client is going to be someone you know. And it will probably be a small business. You might even do it for free at first. But you have to TELL PEOPLE you are do bookkeeping. The Bookkeeper Launch guy calls it “Yakkity Yak”. You know, like the 1950s song from The Coasters! Get out there yakking your jaw about being a bookkeeper. Practice saying it in the mirror – “I am a bookkeeper. I could help you with that problem.” Now say it again. And again. Practice on your cat. If you need more pep in your soul, buy the CD by The Coasters and blare it. They lyrics are about HUSTLING!
- Does the guy who waits at the bus stop in the morning always talk about how disorganized he is?
- Is your sister starting a business?
- Does your church need help with the bookkeeping?
- Can you do the books for the your elementary school’s PTA?
- Do you know someone in this field who gets swamped at tax time and could use some extra help doing bookkeeping for their clients?
- What about your child’s math tutor/piano teacher/karate instructor?
Here are some videos to help you get clients:
Your confidence will increase so rapidly just after that first set of books you work on. I’m not kidding. Well, it will increase after the nausea and fear sets in and you’ve Once you have a bite from a potential client (even a free one), then come back over to the Bookkeeping Side Hustle Facebook Group and you can ask for some tips about how to start an official client engagement.
Now follow these steps and go make some money doing virtual bookkeeping!
Additional Resources
If you appreciate this site, you can buy me a virtual “coffee”. I’ll toast to you when I drink it! Thanks!