A year ago bankrate.com reported that almost half of all Americans had some kind of side hustle. Like you’d expect, millennials are leading the pack but gen-x is not far behind and even roughly a quarter of baby boomers have side jobs.
I think we’d all love to think that these side gigs are providing spending money for elaborate vacations or snazzy cars we couldn’t otherwise afford. While that is part of the “why”, even pre-covid 30% gig workers are using the funds for regular living expenses. I’m sure it’s not exactly news that wages have not kept up with the cost of living. I spent some time teaching accounting in night school to pay off my student loans. I liked the irony of it but also, I needed the extra money and really money is fungible but play along here.
The good news for we bean counters is that over 25% of gig workers are saving their money and the rest either didn’t want to say or were using the money for vacations and expensive Italian shoes, you know the ones with the red bottoms like I’ll never own or maybe a Judith Lieber bag. Probably something more mundane like HBO Max.
I don’t have any studies or stats, but since all of this was pre-Covid I have a feeling that the number of gig workers have greatly increased and I feel like less of this money is “extra” now.
Meanwhile, most gig workers do not keep up with their income and expenses properly. According to Intuit (you know the quickbooks / turbotax people), on average keeping proper records results in $4,340 in additional tax deductions. As a fun fact, they advertise that “all people are tax people” and simultaneously report that most gig workers greatly benefit by having an accountant. I feel like this is especially true if this is really a side-hustle. No one wants to work two jobs and then get bogged down with a lot of paperwork.
What Can Blackberry Accounting & Consulting Do For You – The Gig Worker?
I know you’re curious and you had to know a pitch was coming so here it is. First of all, it’s not as expensive as you might think. In fact, for about what you find in extra deductions and accountant can:
- Help you get organized – all of your income and expenses in one place with audit proof evidence
- Get you paid faster – unless all of your transactions are cash, you’ll need the ability to send invoices, and reminders, and more reminders without having to hound your clients
- Manage your finances on the go – glance at your phone and know how much you’re making and how much it’s costing you to make that amount
- Save you time – don’t pretend you like wading through receipts every night
- Find deductions – this is that extra $4,340 we discussed before
- Manage your cash flow – want to know the stats about how many businesses go under? No, no you don’t because you’re going to be successful and the key to this is managed cash flow
- Audit defense – Did your heart just stop when you heard the word audit? If not it should because it the IRS decides that your business is a hobby, they will disallow all of the associated expenses and that my friend will cost you more than my fees.
- Make a Profit – businesses who work with an accountant, for reasons #1-7 above are more profitable than businesses that go it alone.
Plus, I’m a fun person to talk to. I love hearing business ideas and love nothing more than working with entrepreneurs and watching them achieve their dreams.