How to Set Up a Simple Bookkeeping System for Your Side Hustle

Apr 21

Turning your side hustle into real income is exciting—but it also comes with new responsibilities. One of the most important is keeping track of your finances. Whether you're selling on Etsy, freelancing after work, or starting a part-time service business, a simple bookkeeping system can help you stay organized, make better decisions, and prepare for tax time with less stress.

In this guide, we’ll walk through the basic steps to set up a bookkeeping system that works for your side hustle—no accounting degree required.

Step 1: Separate Your Business and Personal Finances

This is one of the most common mistakes new side hustlers make—mixing business and personal money. Even if your hustle is small, open a separate checking account. This makes it easier to track income and expenses, protect your personal assets, and maintain clean records.

If you’re based in Pittsburgh, check with local credit unions and community banks that offer low-cost business banking options with minimal fees.

Step 2: Choose a Simple Bookkeeping Tool

You don’t need to start with expensive software. Here are three beginner-friendly options:

Spreadsheet (Excel or Google Sheets) – Great for ultra-simple tracking and getting familiar with bookkeeping basics.
Wave Accounting – A free tool that offers invoicing, income/expense tracking, and simple reports.
QuickBooks Simple Start – A small monthly fee for more automation and tax features.

At Pittsburgh Logos, we also help clients set up and customize cloud-based systems like QuickBooks Online or even Monday.com for those who need more workflow support.

Step 3: Track Every Transaction

Once you’ve chosen your tool, set up categories for your income and expenses. Some basic categories to consider:

Income:

Sales or services
Affiliate or ad revenue
Other side hustle income

Expenses:

Supplies or materials
Website or platform fees
Advertising/marketing
Business meals or travel
Home office or internet portion (if used for business)

Update your books weekly or biweekly. Consistency is key—don’t let it pile up until tax season.

Step 4: Save Receipts and Documents

You don’t have to keep a shoebox full of paper anymore. Use tools like:

A folder in Google Drive or Dropbox
A receipt-scanning app like Expensify or QuickBooks Mobile
Your email (just make a folder called “Business Receipts”)

In an IRS audit, digital records are acceptable, as long as they clearly show the date, amount, and purpose.

Step 5: Review Your Numbers Monthly

Set aside time each month to review how your side hustle is doing:

Are you profitable?
Are there recurring costs you can reduce?
Do you need to start saving for taxes?

Even a basic profit and loss report can help you make smarter decisions and feel more confident about your business.

If you need help generating reports, most bookkeeping software includes this feature—or you can reach out to a local Pittsburgh bookkeeping service to review your books with you.

Step 6: Prepare for Tax Season Early

Side hustlers are considered self-employed, which means you’ll likely need to:

File a Schedule C with your 1040
Pay self-employment tax
Make quarterly estimated tax payments if you earn more than $1,000 in profit

A bookkeeper or tax professional can help you calculate these payments and avoid penalties. At Pittsburgh Logos, we offer tax prep and planning tailored for side hustlers and part-time business owners.

Bonus: Automate Where You Can

If your hustle is growing, consider automation:

Use Zapier to connect apps (e.g., send Stripe sales to a Google Sheet)
Set recurring payments and invoicing in your bookkeeping tool
Automate financial workflows with Monday.com, especially if you track projects, client tasks, or deadlines

We help small business owners and side hustlers implement customized Monday.com boards to streamline their finances, project management, and client communications—all in one place.

Final Thoughts

Bookkeeping doesn’t have to be complicated or intimidating. With a little structure and consistency, you can build a simple system that supports your side hustle and sets you up for long-term success.

Need help getting started? At Pittsburgh Logos Tax and Business Solutions, we offer affordable bookkeeping, Monday.com implementation, and tax support for side hustlers and small businesses throughout Pittsburgh. Whether you’re managing receipts, setting up your first system, or growing fast—we’re here to help you stay organized and keep more of what you earn.

Mark Reed