Many accountants want to earn more money. A side hustle offers a good path to this goal. Accountants have strong skills. These skills transfer well to other work. They understand numbers. They help businesses stay organized. They know tax rules. These skills are valuable. People and businesses will pay for this help.
This guide lists seven ways to earn extra money. These ideas fit a professional’s schedule. They build on your accounting knowledge. You can pick one that fits your time and interests. Start building a new income stream this year.
Contents
1. Bookkeeping for Small Businesses
Many small businesses need help with their daily financial tasks. They often do not have an accountant on staff. Bookkeeping involves recording transactions. This means keeping track of money coming in and money going out. It includes managing invoices and bills. You will reconcile bank accounts. You will prepare basic financial reports. These reports show a business its money picture.
What Bookkeeping Involves
You record daily sales. You track expenses. You update accounts payable. This tracks what a business owes others. You update accounts receivable. This tracks what others owe the business. Each month, you match bank statements with the business records. This process is account reconciliation. You prepare profit and loss statements. You also make balance sheets. These documents are very important for business owners. They use these reports to make smart choices. They need accurate numbers to run their business well.
Who Needs This Service?
New businesses often need this help. They start small. Their owners are busy. They do not have time for detailed financial records. Small shops, online stores, and local service providers are good clients. A restaurant owner needs to track food costs. An artist needs to track material purchases. A web designer needs to track project payments. All these people need clear financial records. They often do not know how to set this up. They pay someone with your skills to handle it.
Required Skills and Tools
You need a solid grasp of basic accounting. You should understand double-entry accounting. Familiarity with common accounting software is important. QuickBooks is popular. Xero and FreshBooks are also widely used. Many clients use these programs. You should know how to navigate them. You will also need good communication skills. You will talk to business owners often. You must explain financial terms clearly.
How to Start Bookkeeping Work
First, pick a software program to specialize in. Get certified in that software. QuickBooks offers good certification courses. Then, create a simple service list. List what you offer and your prices. Start with a few clients. Look for local shops or online groups for small businesses. Tell them how you can help. Offer a free first meeting. This helps you understand their needs. It helps them see your value. Ask for referrals from your first happy clients. This builds your client base faster.
Income Potential
A bookkeeper can earn from $30 to $70 per hour. Project-based fees are also common. You might charge $300 to $700 per month for a small business. This fee covers all their monthly bookkeeping needs. A few clients can add hundreds, even thousands, to your monthly income. For example, three clients paying $500 per month would bring in $1,500. This adds up quickly. It offers steady money.
2. Tax Preparation for Individuals and Small Businesses
Many people find tax laws confusing. Small business owners also struggle with tax filing. They need professional help. You can prepare tax returns for them. This work is often seasonal. It brings in high income during tax season. You can also offer tax planning throughout the year. This helps clients make smart money choices. It saves them money on taxes.
What Tax Preparation Involves
You collect financial documents from clients. These include W-2s, 1099s, and expense records. You input this data into tax software. You find all applicable deductions and credits. This lowers the client’s tax bill. You prepare the tax forms accurately. You then submit the forms to tax authorities. You also answer client questions about their taxes. You must stay updated on tax law changes. Tax laws change often. This knowledge makes you valuable.
Who Needs This Service?
Almost everyone needs tax help. Individuals with complex financial situations benefit greatly. Small business owners need help understanding business tax rules. They might have employees. They might sell products online. They often have many expenses to track. Freelancers and independent contractors also seek help. Their income can be irregular. Their expenses are unique. They need someone to guide them through self-employment taxes. Retirees with different income sources also seek help. They might have pensions, investments, and Social Security. You help them file correctly.
Required Skills and Tools
You must know tax codes well. You should understand federal and state tax laws. Familiarity with tax preparation software is important. Popular choices include Drake Tax, UltraTax, and ProSeries. You will also need good organizational skills. You will manage many client documents. A Preparer Tax Identification Number (PTIN) from the IRS is mandatory. You must have this number to prepare taxes for others. Some states also require a license. Check your local state rules.
How to Start Tax Preparation Work
First, get your PTIN. Study current tax laws. Attend workshops on new tax changes. Buy reliable tax software. Start marketing your service. Tell friends, family, and local business owners. Offer a quick tax review for new clients. This shows your expertise. Consider offering basic tax classes to small groups. This helps you find new clients. Build a referral network with financial planners. They often have clients who need tax help.
Income Potential
You can charge from $150 to $500 per individual tax return. Business returns often cost more. They can range from $500 to $1,500. During tax season, you can prepare many returns. A busy tax preparer can earn thousands of dollars in a few months. For example, if you prepare 20 individual returns at $200 each, that is $4,000. Add five small business returns at $800 each, and that is another $4,000. The income potential is high, especially from January to April.
3. Financial Coaching and Budgeting
People want to control their money. They often do not know how to start. You can guide them. Financial coaching means helping individuals or families manage their money. You show them how to make a budget. You help them save for goals. You teach them how to pay off debt. This service builds on your financial understanding. It uses your ability to explain complex ideas simply.
What Financial Coaching Involves
You meet with clients. You discuss their financial situation. You help them set money goals. These goals could be buying a home, saving for retirement, or paying off student loans. You create a budget with them. This budget shows where their money goes. You help them find ways to save money. You teach them about investing. You offer ongoing support. Clients check in with you. They report their progress. You help them stay on track. This often means breaking down old money habits. You build new, healthier ones.
Who Needs This Service?
Many people seek financial guidance. Young professionals want to save for a down payment. Families need to manage household budgets. People with credit card debt want a plan to pay it off. Individuals nearing retirement need to plan their finances. Anyone feeling lost with their money can benefit. They want practical advice. They need a clear plan. They need someone to hold them accountable. This person is you.
Required Skills and Tools
You need strong communication skills. You must listen well. You must explain financial concepts simply. You also need empathy. Clients discuss personal money problems. You must understand their struggles. Knowledge of personal finance is key. This includes budgeting, saving, debt management, and basic investing. You do not need to be a certified financial planner. But a good understanding of these areas is important. Tools can include budgeting apps like Mint or YNAB. Spreadsheet programs are also useful for tracking money.
How to Start Financial Coaching
Define your ideal client. Do you want to help young families? Or people paying off debt? Create a simple coaching package. Offer an introductory session. This helps you and the client decide if you are a good fit. Use social media to share budgeting tips. Write short articles about saving money. This builds your expert reputation. Attend local community events. Talk about money management. Offer workshops at local libraries or community centers. This helps you meet potential clients. Ask for client testimonials. Positive reviews help new clients trust you.
Income Potential
Financial coaches charge by the hour or by package. Hourly rates range from $75 to $150. A coaching package might cost $300 to $800 for a few sessions. If you coach five clients a month at $500 per package, that is $2,500 in extra income. Many coaches also offer monthly retainers. This provides steady income. They charge $100 to $300 for ongoing support. This work can be very rewarding. You directly help people improve their lives. You help them gain control of their money.
4. Payroll Services
Businesses with employees must run payroll. This involves calculating wages. It includes deducting taxes and other items. It also means filing payroll taxes. This can be complex. Many small businesses do not have time for this work. They seek external help. You can offer this service. It provides regular income. Businesses need payroll run weekly, bi-weekly, or monthly. This creates consistent work for you.
What Payroll Services Involve
You collect employee time sheets. You calculate gross pay. You then calculate all deductions. These include federal income tax, state income tax, Social Security, and Medicare. You also deduct for health insurance or retirement plans. You prepare paychecks or direct deposits. You file payroll taxes with government agencies. You keep detailed records of all payroll activity. You might also handle W-2 forms at year-end. You might manage 1099 forms for contractors. This work requires accuracy. It requires attention to detail.
Who Needs This Service?
Any business with employees needs payroll services. Small to medium-sized businesses are good targets. A local cafe with 10 employees needs payroll. A small construction company with 15 workers needs it. A doctor’s office with five staff members needs it. These businesses often do not want to buy expensive payroll software. They do not want to spend time learning tax rules. They prefer to pay an expert. You solve a major headache for them. They pay you for peace of mind.
Required Skills and Tools
You need a solid understanding of payroll laws. This includes federal and state rules. You must know about minimum wage, overtime, and tax withholding. Experience with payroll software is important. Gusto, QuickBooks Payroll, and ADP Run are popular systems. You should also understand basic accounting principles. This helps you integrate payroll data with a client’s books. Strong organizational skills are also key. You will manage sensitive employee data. Confidentiality is paramount.
How to Start Payroll Work
First, pick one or two payroll software systems to learn well. Become proficient in them. Learn all relevant federal and state payroll tax rules. Market your service to local businesses. Visit small business associations. Offer a free consultation. Explain how you can simplify their payroll process. Emphasize saving them time and avoiding errors. Word-of-mouth referrals are very helpful. Happy clients tell other business owners. This helps you build a strong client base.
Income Potential
Payroll services can earn $50 to $100 per payroll run. Many businesses run payroll bi-weekly or monthly. A small business with 5-10 employees might pay $100 to $200 per run. If you manage bi-weekly payroll for five small businesses, that is ten runs per month. At $150 per run, this brings in $1,500 monthly. This is steady, recurring income. The work is predictable. It grows as your client list expands.
5. Software Consulting and Implementation
Businesses often struggle with accounting software. They buy a program. They do not know how to set it up. They do not know how to use it fully. You can help them. You can be a consultant. You guide them through software setup. You teach their staff how to use it. You customize the software for their specific needs. This work helps businesses become more efficient. They run better with proper software use.
What Software Consulting Involves
You assess a business’s current accounting system. You recommend suitable software. This could be QuickBooks, Xero, NetSuite, or others. You help them migrate their old data to the new system. You configure the software. This means setting up accounts, vendors, and customers. You train staff members. You show them how to enter data. You teach them how to pull reports. You provide ongoing support. You answer questions. You troubleshoot problems. You help businesses get the most from their software investment.
Who Needs This Service?
Businesses that are growing need this help. They outgrow simple spreadsheets. They need a more robust system. Startups often need someone to set up their first accounting software. Companies switching from one system to another need help with data transfer. Businesses that use old, outdated software need an upgrade. Business owners who feel overwhelmed by technology also need this. They want someone to handle the technical parts. They want a system that just works. Your accounting background helps you understand their needs better than a general tech consultant.
Required Skills and Tools
Deep knowledge of one or more accounting software programs is critical. Pick a popular one like QuickBooks or Xero. Consider enterprise solutions like NetSuite or SAP if you have experience. You need problem-solving skills. You will fix client issues. You need teaching skills. You will train staff members. Good communication is also very important. You must translate technical terms into simple steps. Patience is a virtue here. People learn at different speeds.
How to Start Software Consulting
Become an expert in one or two software programs. Get certified by the software provider. Create case studies of your successful projects. Show how you helped a business transition smoothly. Network with small business advisors. They often know companies needing this help. Join online forums for accounting software users. Answer questions. Offer quick tips. This builds your reputation. Offer a free software assessment to potential clients. This shows your value. It helps them see areas for improvement.
Income Potential
Software consultants charge high hourly rates. These range from $100 to $250 per hour. Projects can be large. A full system implementation might take 40-80 hours. This could mean $4,000 to $20,000 for one project. Even smaller projects, like setting up a new feature, can bring in $500 to $1,000. This is very profitable work. It uses your specialized knowledge. It solves a big problem for businesses. This kind of work is not always steady. You might have busy months and then slower ones. Plan your finances accordingly.
6. Forensic Accounting Support
Some businesses face financial investigations. This happens with fraud or disputes. They need someone to dig into financial records. This is forensic accounting. It involves finding facts from numbers. As an accountant, you are good with details. This skill is valuable in investigations. You can help law firms or companies find financial truths.
What Forensic Accounting Support Involves
You examine financial documents. These can be bank statements, invoices, or contracts. You look for unusual patterns. You seek inconsistencies. You might trace money flows. You look for signs of fraud. You prepare reports. These reports summarize your findings. You might present your findings clearly. You might explain complex financial data to non-financial people. This often includes lawyers or jury members. You might also serve as an expert witness. This means testifying in court about your findings. This work helps legal cases. It helps businesses recover stolen funds. It requires precision.
Who Needs This Service?
Law firms often need forensic accounting support. They might handle divorce cases with complex assets. They might work on business fraud cases. Businesses that suspect employee theft or financial irregularities also need this. Insurance companies use forensic accountants. They investigate claims. Government agencies might need help with investigations. These clients need someone who can understand numbers. They need someone who can explain what the numbers mean. They need someone who can follow a money trail. This work is less common. It is also highly specialized.
Required Skills and Tools
You need strong analytical skills. You must pay great attention to detail. You must look for small clues in large data sets. You need a good understanding of legal processes. This helps you present findings in court. You need to be able to handle sensitive information. Confidentiality is paramount. You also need strong communication skills. You must explain complex financial details clearly. Spreadsheet programs like Excel are vital. Data analysis tools can also be helpful. Knowledge of fraud schemes is a plus. Your general accounting knowledge is a strong foundation.
How to Start Forensic Accounting Support
Network with law firms. Talk to lawyers who handle corporate litigation or family law. Attend legal conferences. Join legal professional groups. Let them know you offer this specialized service. Highlight your precision and detail-oriented approach. Offer to review initial documents for free. This builds trust. It shows your skills. You can also contact corporate security departments. They sometimes need external help. Consider obtaining a Certified Fraud Examiner (CFE) certification. This adds credibility to your resume. It shows your commitment to this field.
Income Potential
Forensic accounting support pays very well. Rates often range from $150 to $300 per hour. Due to the complex nature of the work, projects can last weeks or months. A single project might bring in thousands of dollars. For instance, a 50-hour project at $200 per hour yields $10,000. This is not a consistent weekly income. Work comes when needed. But when it comes, it offers substantial pay. This can be a good way to earn a lot of money when a project arises.
7. Virtual CFO Services
Startups and small businesses often cannot afford a full-time CFO. Yet, they need high-level financial guidance. They need strategic advice. You can offer this as a virtual CFO. You provide financial leadership remotely. You help these companies plan their growth. You help them make smart financial choices. This role is more strategic than bookkeeping. It uses your highest accounting skills.
What Virtual CFO Services Involve
You provide strategic financial planning. You help with budgeting and forecasting. You create financial models. These models predict future financial performance. You analyze financial results. You explain them to business owners. You help with cash flow management. This means making sure a business has enough money to operate. You advise on funding strategies. This might involve helping a business get a loan. You also provide insights into key performance indicators. These are numbers that show how well a business runs. You help businesses improve their financial health. You help them make better business decisions.
Who Needs This Service?
Growth-focused startups need a virtual CFO. Small to medium-sized businesses aiming to expand also need this. Companies planning to raise capital or sell their business need this guidance. Non-profit organizations often seek strategic financial oversight. These businesses need someone who understands financial strategy. They need a partner who can help them grow. They need someone to help them read their financial reports. They want to avoid financial mistakes. They want clear financial direction. You provide that direction without the cost of a full-time executive.
Required Skills and Tools
You need strong financial modeling skills. You must understand business strategy. You should know how to read and interpret complex financial statements. Excellent communication skills are essential. You will explain complex financial concepts to business owners. You also need good advisory skills. You will guide decisions. You will offer solutions. Experience with financial planning software is helpful. Tools like Excel, financial reporting dashboards, and forecasting software are common. You also need an understanding of various business types. Each industry has unique financial needs. You should also understand basic business law.
How to Start Virtual CFO Work
Define your target industry. Do you want to work with tech startups? Or e-commerce businesses? Create a service package. Outline what you offer. This often includes monthly meetings and specific deliverables. Build a strong online presence. Share articles about financial strategy. Show your knowledge. Network with venture capitalists. Talk to business incubators. They often know startups needing this help. Offer a strategic financial review as an introductory service. This shows your depth of knowledge. It helps a potential client see your value. Ask for testimonials from satisfied clients. These help attract new clients.
Income Potential
Virtual CFO services typically charge a monthly retainer. This ranges from $1,000 to $5,000 or more. The fee depends on the company’s size and needs. A few clients can build a substantial income. For example, three clients paying $2,500 each per month will bring in $7,500. This provides consistent, high-level income. This work is highly valuable to businesses. It builds on your years of accounting experience. It allows you to impact a business’s growth directly. This is a very rewarding path for experienced accountants. It offers flexibility and high earning potential.
Conclusion
Accountants have many ways to earn extra money. Side hustles use your valuable skills. They offer flexibility. They let you control your income. Each hustle offers a different path. Bookkeeping helps small businesses with daily tasks. Tax preparation provides high income during tax season. Financial coaching helps individuals manage their money. Payroll services offer steady, recurring income. Software consulting guides businesses through technology. Forensic accounting supports legal investigations. Virtual CFO services offer high-level strategic advice.
Pick one that fits your skills and available time. Start small. Learn more as you go. Many resources exist to help you begin. Will you start a side hustle today? Plan your first steps. Reach out to potential clients. Build your new income stream. Your financial future can improve. Start building that future now. You have the skills. You have the knowledge. You can do this. Begin your journey to more income.
