How to make money online as a bookkeeper working from home from this side hustle in 2022?
We live amidst transactions happening around us every second from B2B (Business to business) and B2C (business to consumer). Stats say that an estimated 51.7% of the people will be involved in ecommerce are using digital mode of payment
But why are we discussing all this in the first place?🤔
It’s very simple, an increase in numbers and revenues for businesses can also lead to more complexities and burden for the whole businesses to keep a track of these daily transactions on a day to day basis.
This is because business owners don’t want to spend time understanding accounts, reconciliations, payments, invoices and stuff but rather want to delegate this to someone and get the job done.
This is where the BOOKKEEPERS (aka finance saviors😉) jump in!!
Today, we are gonna discuss how to become a bookkeeper and make money working from home and how to start bookkeeping as a side hustle in 2022.
We will cover up mainly the following topics about bookkeeping:
- Who is a bookkeeper?
- What is the role of a bookkeeper?
- Skills of a bookkeeper?
- How much can you earn as a bookkeeper and much more..🙂
In this Guide
Who is a bookkeeper?
Simply said, a bookkeeper is a person who takes care of the financial affairs of a business on a daily basis.
He/she keeps a track of the daily transactions of the business and assists in the following:
Role of a bookkeeper
A bookkeeper generally performs the following roles for a business organization:
- Categorization of different heads of expenses and income of a business entity.
- Performing the task of reconciliation of bank statements to the statement of account prepared by the bookkeeper.
- Settling payment of invoices and managing the accounts payable of a business. Accounts payable would generally include rent payments, material payments or other utilities utilized in the business.
- Receiving any payments from the parties in regards to accounts receivables which would generally include bills/invoices from several customers.
- Bookkeepers also assist in the settlement of payroll expenses of employees which would involve several things such as employee taxes, salary deductions, statutory dues of salary etc. This would also consist of insurance expenses of employees as well.
- Taking care of financial statements prepared on a periodic basis which would include Balance Sheet, Profit and Loss or even Cash Flow Statements.
This simply means a bookkeeper would be the go to person for an accountant when required to gather information about the financials of an entity.
But, bookkeepers may sound synonymous to accountants, but the 2 terms are entirely different altogether. Here’s the difference between both.
Bookkeeper vs Accountant? (Key differences in between both)
|They do all the stuff before the financial documents are taken over by the accountant.||They perform their work after the financial records are prepared by the bookkeeper.|
|Bookkeepers perform the work on a day to day basis.||Accountants do the work on a periodic basis such as quarterly, semi annually or annually.|
|Daily tasks performed by bookkeepers involve |
– managing accounts payable,
– bank reconciliations,
– trial balance and
– making debit or credit entries to books of accounts
|Accountants work upon following aspects, such as|
– Filing taxes,
– Analysis of financial data
– Risk analysis and evaluation
|One doesn’t need to obtain a higher degree of any financial course to be a bookkeeper.||One should obtain a degree in finance to be an accountant.|
Let’s know what you must seek in order to become a bookkeeper.
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Which skills are required to become a bookkeeper in 2022?
Following 6 skills would be necessary to become a bookkeeper in 2022:
- Good numerical skills and ability to interpret with numbers when opportunity arises.
- Having familiarity with the technological stuff to deal with accounting and records. This would include having knowledge over several software.
- A good communication skills which would mean ability to talk to clients verbally and written as well.
- Having a detailed approach towards everything which would mean keeping a check over all details and making sure it complies with all.
- Be a quick learner and adaptable to the changing needs of business and this would mean having the desire to learn for any new skill that would be required for bookkeeping business.
- Be organized with the approach of handling accounts and stuff. This is important as you will be dealing with numbers and you need to be well organized while accessing stuff such as accounts and records.
To make money online as a bookkeeper you need not be a superman at the end of the day..👊, but having the willingness to succeed is what will make all the difference.
If you feel unsure if bookkeeping is really good enough as it may sound, here’s a list of some of the benefits that you can enjoy being a bookkeeper in 2022.
What are the benefits of becoming a bookkeeper in 2022?
Bookkeeping is a wonderful side hustle that has loads of benefits associated to it, such as:
- It provides you the desired freedom you are looking for and you get to decide upon the when, how and where to start the work.
- All you need to begin working as a bookkeeper is a computer and a reliable high speed internet connection to get started. This means the startup costs for starting this business is really low.
- You get exposure to work with small business owners and enterprises and meet with different businesses.
- This is a perfect job for stay at home parents as well, who are looking to make money online.
- Bookkeeping provides flexible hours of work and this can be scaled to an altogether new level with effort and patience.
You might be thinking, okay this side hustle seems interesting but will I be the right fit for the job? Well there is no definitive answer to this and requires introspection and proper understanding of what the job offers to you.
Let’s have a look at how much you can expect to earn as a bookkeeper in 2022.
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How much can I earn as a bookkeeper in 2022?
Earnings for any side hustle depends on several factors. This mainly depends on time and effort put into the work alongside experience gathered in the process.
Here’s an insight into how much one can earn as a bookkeeper in 2022:
As per Salary, a bookkeeper earns on an average $45,250 per month in 2022.
This of course is an average and would vary as on date when you are reading this, but this mainly depends upon several factors such as:
- Time invested
- Experience and expertise of handling clients
- Knowledge of work assigned etc
This would definitely vary as on date when you read this.
So the earnings of a bookkeeper is quite good as compared to other side hustles and this can be a wonderful side hustle to begin with in time.
You need to be persistent and willing to put in the efforts initially to make it a sustainable and viable career in the long run.
You have got all the information you have been looking out for.
Now we will look into “How to get started in bookkeeping in 2022”?
How to get started in bookkeeping in 2022?
Bookkeeping is a great side hustle to make money online. In order to begin with bookkeeping one can consider the following:
- Train yourself as a bookkeeper by being a problem solver, organizing stuff, putting an attention to detail etc.
- You can take help of videos from YouTube, read books and blogs to learn about bookkeeping as well.
- Develop your skills as a bookkeeper by learning about required software such as QuickBooks and other programs.
- You can also consider obtaining a certification, if necessary to become a certified bookkeeper as well. This increases your chances of success and you will have more opportunities opening up as well.
- Last but not the least, consider applying for jobs through several platforms such as freelancing platforms, Facebook groups or LinkedIn etc.
Now that we have covered all the relevant details which were necessary, let’s have a quick recap of what we read about so far.
Key Takeaways about Bookkeeping
Bookkeeping is an amazing side hustle that offers us so many things as follows:
- A bookkeeper is a person who takes care of the financial affairs of a business on a daily basis.
- Bookkeepers help to categorize all expenses and incomes, perform daily reporting for accounts receivable, accounts payable, reconcile bank accounts etc.
- A bookkeeper is different from an accountant. An accountant performs a multitude of functions such as payment of taxes, evaluating for analysis of risk, financial analysis of data etc.
- Several skills such as numerical skills, communication skills, organized approach, familiarity with technical stuff are essential for bookkeeping.
- Bookkeepers make money online which varies from $18.20 – $19.30 per hour as reported for 2022.
- Becoming a bookkeeper offers several amazing benefits such as freedom of work, flexibility of the job, earnings potential and a lot more.