How to Make Money as a Work-from-Home Bookkeeper

As an internet entrepreneur who has dabbled in various side hustles, I can tell you that not all paths to earning extra income are created equal. Some ventures require hefty investments of time and money, while others can be pursued with minimal upfront costs and the potential for substantial returns. One of the most rewarding and flexible options I’ve encountered is bookkeeping.

In today’s digital age, businesses of all sizes are in constant need of skilled bookkeepers to manage their financial records. The beauty of this profession is that it can be done from the comfort of your own home, allowing you to create your own schedule and work at your own pace. Whether you’re looking to supplement your income or build a full-fledged bookkeeping business, the opportunities are vast.

In this article, I’ll share insights and strategies on how to make money as a bookkeeper from home. From honing your skills and getting certified to marketing your services effectively, I’ll guide you through the essential steps to turn this side hustle into a lucrative venture.

What is a Bookkeeper?

A bookkeeper is a professional responsible for managing a company’s financial records. This role involves recording financial transactions, maintaining accurate financial statements, and ensuring that the company’s financial data is organized and up-to-date.

Bookkeepers play a crucial role in the financial health of a business by tracking income and expenditures, reconciling bank statements, and maintaining ledgers. They often use accounting software to perform these tasks, making the process more efficient and reducing the likelihood of errors.

Bookkeepers are essential in businesses of all sizes and industries, providing the foundational financial data that accountants and business owners use to make informed decisions.

What Does a Bookkeeper Do?

Bookkeepers perform a variety of routine tasks to ensure the financial health of a business. Here are some of the key responsibilities:

• Data Entry: Bookkeepers are responsible for entering financial transactions into accounting software, including sales, purchases, payments, and receipts. This foundational task ensures that all financial data is accurately recorded.
• Bank Reconciliation: Regularly reconciling bank statements with the company’s financial records is crucial. This process helps identify discrepancies and ensures that the recorded transactions match the bank’s records.
• Accounts Receivable Management: This involves tracking outstanding invoices, sending reminders to clients, and ensuring timely payments are received. Bookkeepers may also handle credit control to minimize bad debts.
• Accounts Payable Management: Bookkeepers manage outgoing payments, including processing invoices, scheduling payments, and ensuring that all obligations are met on time.
• Financial Reporting: Preparing monthly, quarterly, and annual financial reports is a key task. This includes generating profit and loss statements, balance sheets, and cash flow statements to provide insights into the business’s financial performance.
• Expense Tracking: Keeping track of business expenses is essential for budgeting and financial planning. Bookkeepers categorize and record expenses to provide a clear picture of where money is being spent.
• Payroll Processing: In many cases, bookkeepers are responsible for processing payroll, which includes calculating employee wages, withholding taxes, and ensuring compliance with labor laws.
• Invoicing and Billing: Creating and sending invoices to clients for services rendered or products sold is a routine task that helps maintain cash flow.

These tasks are typically performed daily, weekly, or monthly, depending on the size of the business and its specific needs.

How Much Does a Bookkeeper Earn?

The salary of a bookkeeper can vary significantly based on factors such as location, experience, and the complexity of the bookkeeping tasks they perform.

In the United States, the average annual salary for a bookkeeper is approximately $44,379, with a typical range between $39,730 and $49,470. Hourly wages for bookkeepers generally range from $13.17 to $21.83, depending on the state and specific duties involved.

More experienced bookkeepers, such as full-charge bookkeepers who handle additional accounting tasks, may earn higher wages. The average hourly rate for full-charge bookkeepers ranges from $17.56 to $27.12, with an average of $20.85. In addition, bookkeepers may receive extra compensation through bonuses, profit sharing, or commissions, which can add up to $19,000 to their annual earnings.

Geographical location also plays a significant role in determining salaries. For instance, bookkeepers in Massachusetts and Alaska earn some of the highest average hourly wages in the U.S., at $21.83 and $20.60, respectively. Conversely, salaries in states with lower costs of living may be on the lower end of the spectrum.

How Much Does a Bookkeeper Earn?

The salary of a bookkeeper can vary significantly based on factors such as location, experience, and the complexity of the bookkeeping tasks they perform.

In the United States, the average annual salary for a bookkeeper is approximately $44,379, with a typical range between $39,730 and $49,470. Hourly wages for bookkeepers generally range from $13.17 to $21.83, depending on the state and specific duties involved.

More experienced bookkeepers, such as full-charge bookkeepers who handle additional accounting tasks, may earn higher wages. The average hourly rate for full-charge bookkeepers ranges from $17.56 to $27.12, with an average of $20.85. In addition, bookkeepers may receive extra compensation through bonuses, profit sharing, or commissions, which can add up to $19,000 to their annual earnings.

Geographical location also plays a significant role in determining salaries. For instance, bookkeepers in Massachusetts and Alaska earn some of the highest average hourly wages in the U.S., at $21.83 and $20.60, respectively. Conversely, salaries in states with lower costs of living may be on the lower end of the spectrum.

How to Make Money as a Bookkeeper From Home

1. Gain Bookkeeping Skills
2. Get Certified
3. Acquire Practical Experience
4. Set Up Your Home Office
5. Market Your Services

In the following sections, I’ll walk you through each step of the process, equipping you with the knowledge and tools necessary to launch a successful bookkeeping career from home.

Step 1: Gain Bookkeeping Skills

To become a successful bookkeeper working from home, it’s essential to develop the necessary skills.

A good bookkeeping training program will teach you the essential skills needed to record financial transactions, keep records, prepare reports, and use bookkeeping software. Some options include:

• Bookkeeper Launch: Provides comprehensive training on the technical aspects of bookkeeping as well as guidance on starting your own bookkeeping business.
• Intuit’s Bookkeeping Professional Certificate: Teaches bookkeeping and accounting fundamentals, asset types, liabilities, equity, financial statement analysis, and hands-on practice with real-world scenarios.

Proficiency in accounting software like QuickBooks is crucial for bookkeepers. Aim to gain experience with:

• Data entry
• Invoicing
• Accounts payable and receivable
• Financial statements
• Bank reconciliations

As a bookkeeper, you’ll need to master the following technical skills:

• Debits and credits
• Invoicing
• Billing
• Vendor relations
• Accounts payable and receivable
• Payroll
• Financial statements
• Bank reconciliations
• Spreadsheets

Step 2: Get Certified

Becoming a certified bookkeeper is a significant step toward establishing credibility and enhancing your career prospects in the field of bookkeeping. Certification not only demonstrates your expertise but also increases your earning potential and job opportunities. 

There are two prominent certifications for bookkeepers in the United States:

• Certified Bookkeeper (CB): Offered by the American Institute of Professional Bookkeepers (AIPB), this certification is designed for those with at least two years of bookkeeping experience or relevant education. The certification process includes passing a series of exams that cover advanced bookkeeping skills, such as payroll, financial statements, and error correction.
• Certified Public Bookkeeper (CPB): Provided by the National Association of Certified Public Bookkeepers (NACPB), this certification requires candidates to complete an Accounting Fundamentals course and pass the Uniform Bookkeeping Certification Examination. The CPB certification is recognized nationally and is ideal for those looking to validate their bookkeeping skills.

To obtain certification, follow these general steps:

1. Meet the Prerequisites: Ensure you have the necessary experience or education. For the CB certification, you need at least 3,000 hours of bookkeeping experience or two years in the field. For the CPB, a minimum of 2,080 hours or one year of experience is required.
2. Complete Required Courses: Enroll in and complete any prerequisite courses. For example, the NACPB requires completion of the Accounting Fundamentals course before taking the CPB exam.
3. Pass the Certification Exam: Study for and pass the certification exam. Both AIPB and NACPB provide resources and practice tests to help you prepare. The exams cover various topics, including financial reporting, payroll, and taxation.

After obtaining your certification, you’ll need to fulfill continuing education requirements to maintain it. For instance, CPB holders must complete 24 hours of continuing education annually, while CB holders need 60 hours every three years.

Step 3: Acquire Practical Experience

One of the most accessible ways to gain experience is by managing your own finances. Set up a bookkeeping system for your personal finances using accounting software like QuickBooks. This will allow you to practice:

• Recording transactions: Track your income and expenses.
• Reconciliation: Regularly reconcile your bank statements to ensure accuracy.
• Financial reporting: Generate reports to analyze your financial health.

This self-directed experience is invaluable as it helps you understand the practical applications of bookkeeping concepts in a real-world context.

Another effective method is to offer your bookkeeping services to friends or family members who own small businesses. You can start by providing your services for free or at a reduced rate for a limited time. This approach allows you to:

• Gain real-world experience: Work with actual business transactions.
• Build a portfolio: Document your work and results, which can be showcased to future clients.
• Receive feedback: Get constructive criticism that can help you improve your skills.

You may also volunteer positions at local businesses, non-profits, or community organizations.

Step 4: Set Up Your Home Office

As a bookkeeper working from home, having a dedicated and well-organized workspace is crucial for productivity, professionalism, and efficiency.

To get started, select a quiet, distraction-free area in your home that can be dedicated solely to your bookkeeping work. Avoid high-traffic areas like the living room or kitchen. If possible, choose a room with a door that can be closed to minimize interruptions.

Make sure your desk and chair provide proper ergonomic support to prevent back pain and discomfort during long work hours. Choose a desk that is large enough to accommodate your computer, monitor, and any necessary paperwork or supplies.

Your computer is the backbone of your bookkeeping work, so make sure it is up-to-date and equipped with the necessary software and hardware. Consider the following:

• Use a desktop computer or a powerful laptop
• Install reliable bookkeeping software like QuickBooks or Xero
• Use a large, high-resolution monitor for better visibility
• Invest in a comfortable, ergonomic keyboard and mouse

A stable and fast internet connection is essential for accessing online bookkeeping tools, communicating with clients, and sending or receiving files. Consider upgrading your internet plan if necessary, and have a backup plan in case of outages, such as a mobile hotspot or a nearby coffee shop with reliable Wi-Fi.

Step 5: Market Your Services

You can find clients looking for bookkeeping services on freelance marketplaces and job boards, including: 

• Platforms like Upwork or Fiverr: Create a profile highlighting your skills and services. Bid on relevant projects to build your client base.
• Remote Job Boards: Search for bookkeeping jobs on sites like Remote.co or We Work Remotely to find clients who need virtual bookkeeping support.

However, if you want to get more clients and charge a higher rate, you’ll need to spend more efforts on marketing. To get started, you need a well-designed website serves as your online business card and portfolio. It should include:

• Service Descriptions: Clearly outline the bookkeeping services you offer, such as financial reporting, payroll processing, and tax preparation.
• Testimonials: Showcase positive feedback from past clients to build credibility.
• Contact Information: Make it easy for potential clients to reach you through a contact form or direct email.

After that, you can give a try on these marketing strategies:

• Social medial marketing: You can leverage social media platforms such as Facebook and Instagram to promote your services and engage with potential clients. It’s also a good idea to create a professional profile and share insightful content related to bookkeeping and finance on LinkedIn. 
• Blogging: Write articles that address common bookkeeping challenges or provide tips for small business owners. This positions you as a knowledgeable resource and can improve your website’s search engine ranking.
• Email Marketing: Send regular updates that include bookkeeping tips, industry news, and information about your services. This keeps you top-of-mind when they need bookkeeping assistance.
• Ask for Referrals: Encourage satisfied clients to recommend your services to others. You can also ask friends and family to spread the word about your business. Consider providing discounts or bonuses for clients who refer new customers to you.
• Attend Local Events: Participate in small business expos, trade shows, or community events to meet potential clients and other professionals.
• Webinars and Workshops: Host online sessions to educate business owners about bookkeeping best practices. This can help you connect with potential clients and showcase your expertise.

Focusing on a specific industry can help you stand out from the competition. Consider targeting specific sectors, such as healthcare, e-commerce, or real estate, where you can offer tailored services and become an expert in their unique financial needs.

Pros and Cons of Being a Bookkeeper

The Pros

• Stable Career Path: Bookkeeping is a fundamental aspect of virtually every business, ensuring a steady demand for these professionals. This stability provides job security and consistent employment opportunities.
• Clear Career Progression: The field of bookkeeping offers a clear career path, allowing professionals to advance their skills and take on more responsibilities over time.
• Flexibility in Work Environment: Bookkeepers can work in various settings, including small businesses, large corporations, or even remotely. This flexibility allows for a better work-life balance and the ability to choose a preferred work environment.
• Essential Role in Business: Bookkeepers play a crucial role in maintaining the financial health of businesses, making their work meaningful and impactful.

Cons of Being a Bookkeeper

• Repetitive and Monotonous Tasks: The nature of bookkeeping work can be repetitive, involving routine data entry and financial record-keeping, which some may find monotonous.
• Pay Ceiling: There may be limitations on earning potential compared to other financial professions, especially without additional certifications or advanced education.
• Stress and Long Hours: During peak times, such as tax season or financial year-end, bookkeepers may experience increased stress and longer working hours to meet deadlines.
• Technological Disruptions: The field is subject to ongoing technological changes, requiring bookkeepers to continuously adapt to new software and systems.
• Attention to Detail: The job demands meticulous attention to detail, which can be mentally exhausting for some individuals.
• Liability Concerns: Bookkeepers may face potential liability issues if errors occur in financial records, adding an element of professional risk.
• Competitive Field: With the increasing accessibility of bookkeeping software, there may be growing competition in the job market.

Final Thoughts

As we’ve explored, the demand for skilled bookkeepers continues to grow, making this profession a viable option for anyone looking to earn extra income or even establish a full-time career.

By gaining the necessary skills, obtaining certifications, and effectively marketing your services, you can carve out a niche in the bookkeeping world that suits your lifestyle and goals.

Remember, the key to success lies in your commitment to continuous learning and adapting to the ever-evolving landscape of financial management.

Anthony Smith

Anthony Smith is an internet entrepreneur. He created the Side Hustle Ideas Database to help people find side hustles for making extra money, with the potential of turning into a full-time income.

After graduating from the University of Pennsylvania with a business degree, he gained business experience at a consulting firm. At the same time, he tried various side hustles including freelance writing, blogging, and eCommerce. He managed to turn his side hustles into a full-time business, earning over $3 million. Now, he enjoys financial freedom and travels around the world as a digital nomad.