How to start a bookkeeping business in 2025: the complete guide

Thinking about starting a bookkeeping business? 

Whether you’re going full-time or starting as a side hustle, getting the setup right will give you an advantage. This guide covers everything you need, from structuring your business to signing your first clients. 

Plus, grab our complete startup checklist to keep your launch on track.

Now, let’s dive into the basics of how to start a bookkeeping business.

Why start a bookkeeping business? Benefits you didn’t expect

You already know that running a business gives you flexibility and financial control, but bookkeeping comes with unexpected advantages most people miss.

1. Low financial risk

Most businesses require big upfront investments. Bookkeeping doesn’t. With just a laptop and software, you can start small, avoid debt, and grow at your own pace.

2. Stability in any economy

When money’s tight, businesses rely on bookkeepers more than ever. Owners need to track every dollar, and the person who understands their numbers best becomes their go-to advisor. That trust turns bookkeepers into an essential part of the business.

3. Scalable income without overworking

Bookkeeping rewards skill, not just hours worked. While beginners might charge $300/month per client, experienced ones can bring in $2,500+ for the same effort.

4. Work-life balance on your terms

Choose the clients that fit your lifestyle. Prefer stability? Work with established businesses. Love variety? Focus on startups. Your clients shape your schedule, influence your workload, and ultimately define your quality of life.

5. Career growth opportunities

Bookkeeping isn’t a dead end — it’s a launchpad. Grow into consulting, run a firm, or even step into a CFO role. Financial expertise keeps you in demand wherever your career takes you.

Do you have what it takes to run a bookkeeping business?

Being a great bookkeeper and starting a bookkeeping business are two different things. To build a thriving business, you need technical expertise, business acumen, and strong personal qualities.

Before you start a bookkeeping business, check yourself against these three key areas to see where you already excel — and what you might need to improve.

1. Bookkeeping skills (your technical foundation)

• Financial literacy: debits, credits, accrual vs. cash accounting, and financial reports
• Software proficiency: QuickBooks, Xero, TaxDome, and other accounting tools
• Attention to detail: reconciling accounts, catching errors, and maintaining clean records
• Regulatory knowledge: staying updated on tax laws, sales tax rules, and compliance requirements

2. Business skills (growing and managing your firm)

• Client acquisition: marketing your services and communicating your value effectively
• Relationship management: setting expectations, onboarding seamlessly, and maintaining trust
• Process optimization: creating workflows that help you work smarter, not harder

3. Soft skills (personal traits that set you apart)

• Discipline: meeting deadlines, staying organized, and managing workload effectively
• Communication: explaining financial matters clearly to non-accountants
• Adaptability: handling new tools, changing regulations, and unique client needs
• Professionalism: clients share sensitive financial data, so integrity is key
• Patience: dealing with disorganized clients and fixing messy books takes persistence

The good news? These skills can be learned and developed over time.

How to start a bookkeeping business: a step-by-step guide

A strong foundation will set you up for sustainable growth, higher-value clients, and long-term success. Here’s how to do it right:

1. Understand your “Why?”

Before you dive into workflows and pricing, ask yourself: Why do you want to start a bookkeeping business?

Is it for more freedom? Higher earnings? A career shift? Jot it down. Your “why” is what will keep you motivated when challenges arise.

2. Define your niche and service offerings

Not all bookkeepers do the same work. Some focus on monthly bookkeeping, others specialize in financial clean-ups, and some offer advisory or CFO services. What kind of bookkeeper do you want to be?

Some high-demand markets to consider:

• Startups and small businesses 
• E-commerce and online businesses
• Healthcare
• Construction and building
• Freelancers and creative professionals
• Traditional brick-and-mortar retail
• Restaurants and hospitality

The more specialized you are, the easier it is to market your services — and the more clients are willing to pay for your expertise.

3. Craft a solid business plan

Starting a bookkeeping business without a plan is like driving without a map — you might get somewhere, but not efficiently. It gives you clarity and ensures you’re building something sustainable

Your plan should answer:

• Who is your target market?
• How will you attract clients?
• What pricing model will you use?
• What tools and systems will you rely on?

Even a simple one-page business plan helps you stay focused and avoid common pitfalls.

4. Set up your business legally and financially

Before taking on clients, you need to handle the legal and financial foundation of your business. Here’s what you need to do:

• Register your business with the relevant authorities
• Choose a legal structure (LLC, sole proprietorship, etc.) for your business
• Secure an employer identification number (EIN)

The way you legally start a bookkeeping business impacts everything — from taxes to client trust — so it’s worth getting it right from the beginning.

And once your business is legally established, it’s time to protect it with the right insurance.

5. Secure your business with the right insurance

No one likes to think about worst-case scenarios, but protecting your business from potential risks is essential.

• Errors & Omissions (E&O) insurance covers claims if a client accuses you of financial mistakes or negligence.
• General liability insurance protects against legal claims for accidents or damages related to your business.
• Cyber liability insurance safeguards client data in case of hacking or data breaches.
• Business property insurance covers office equipment and workspace damages.

If you’re handling payroll, tax prep, or advisory services, E&O insurance is a must. Some states or industries may even require it.

6. Get a bookkeeping business license

Licensing requirements for bookkeepers vary depending on your location. Some states or countries require a specific bookkeeping license, while others do not.

Here’s how to check if you need one:

• Visit your state or local government’s business registration website
• Check industry requirements through a professional bookkeeping association (e.g., AIPB or NACPB in the U.S.)
• Look at tax preparation laws — if you plan to offer tax-related services, additional licensing may be required

Even if a license isn’t required, obtaining certifications from recognized institutions (like QuickBooks ProAdvisor, AIPB, or NACPB) can boost credibility and attract higher-value clients.

7. Set up your business infrastructure

To run a bookkeeping business efficiently, you need a way to manage your firm, team, clients, and revenue operations all in one place.

That includes:

• Tracking projects and deadlines
• Ensuring seamless client communication
• Handling document collection
• Managing invoices and payments

Doing all of this manually? It’s a recipe for burnout.

That’s where TaxDome comes in. Instead of juggling multiple tools, you can have everything in one place. Plus, clients love it — the TaxDome mobile app is rated 4.9 stars because it makes their experience effortless.

It’s no surprise TaxDome continues to win industry awards and recognition.

8. Select the right bookkeeping software

Every bookkeeper needs reliable software to manage transactions, categorize expenses, and generate reports. Most professionals rely on QuickBooks Online (QBO) or similar tools for these tasks.

But managing bookkeeping and firm operations separately can slow you down. Soon, you won’t need multiple platforms — TaxDome is bringing bookkeeping and practice management together in one place. 

You’ll get unlimited clients with no per-client fees, all included in your plan.

See what’s coming and how it will transform the way you work.

9. Determine your pricing strategy

Once your infrastructure is in place, the next big question is: How much should you charge?  

The key is to price based on the value you provide, not just the time you spend. Consider these common models:

• Hourly pricing: simple but limits your earning potential
• Fixed pricing: more predictable income and scalable as you grow
• Value-based pricing: charge based on the client’s ROI rather than your time

If clients say “yes” too quickly, your rates might be too low. Research your market, test your pricing, and don’t be afraid to charge what your expertise is worth.

10. Create a professional online presence

Being visible online helps potential clients find you and feel confident in your business. At a minimum, you should have:

• A simple website outlining your services, niche, and contact info
• A professional LinkedIn profile (where many business owners search for bookkeepers)
• Testimonials or case studies to build credibility

If potential clients can’t find you online, they’ll move on to someone they can.

11. Find clients through effective marketing

When you first start a bookkeeping business, getting clients is the biggest challenge. But cold calling isn’t the only way to find them. Instead, focus on:

• Referrals: build relationships with CPAs, business coaches, and financial advisors
• Online communities: business owners frequently ask for bookkeeping help in Facebook groups, LinkedIn, and industry forums
• Content marketing: share valuable insights online to attract clients rather than chasing them

The goal is to position yourself as the go-to expert — clients will come to you instead of the other way around.

12. Track your expenses and financials

You help clients stay financially organized so your own books should be spotless. Keep your finances in order by:

• Using software for your own records
• Setting aside taxes monthly to avoid surprises
• Tracking business expenses to maximize deductions

Even as a bookkeeper, hiring an accountant for tax strategy is smart because knowing bookkeeping doesn’t mean you have to do your own taxes.

13. Understand funding options

Most bookkeeping businesses don’t need major startup funding, but if you plan to scale quickly, consider:

• Small business grants for professional services
• Business credit cards to manage cash flow and earn rewards
• SBA loans or lines of credit if you need to invest in hiring or technology

Having access to funding keeps your business flexible and helps you grow faster when opportunities arise.

FAQs

Can I open my own bookkeeping firm without being a CPA?

Short answer: Yes. 

A CPA license is not legally required to start a bookkeeping business. However, CPAs naturally have built-in trust, so you’ll need to stand out in other ways to win clients from competitors.

But some experienced bookkeepers argue that investing in marketing provides a higher return than becoming a CPA:

Can I start a bookkeeping business part-time?

Yes! Many bookkeepers start part-time while keeping another job. It’s a great way to build experience, gain clients, and refine your processes before going full-time. Since a virtual bookkeeping business doesn’t require office space, you can work remotely and scale at your own pace. The key is setting up efficient workflows early on so you don’t feel overwhelmed as you grow.

Can I start a bookkeeping business from home?

Yes! Many bookkeepers want to know how to start a bookkeeping business from home, and the good news is — it’s easier than ever. With cloud-based software and client portals, you can run a fully remote bookkeeping business without the need for office space.

Is bookkeeping a lucrative business venture?

Absolutely. A bookkeeping business can be highly profitable, but success depends on choosing the right clients, pricing your services well, and leveraging automation.

What challenges may arise when starting a bookkeeping business?

Finding clients, setting the right pricing, and managing multiple accounts efficiently are common struggles. Many new bookkeepers also face trust barriers — clients may hesitate to hire someone without a CPA title. A strong online presence, a clear value proposition, and professional credibility can help. Using the right tech stack is also crucial — having disorganized workflows can slow down your growth more than anything else.

How can I market my bookkeeping business?

Forget cold-calling random businesses. Networking is the key to finding great clients. Connect with CPAs, financial advisors, and small business owners who already trust you. Join online business communities where entrepreneurs actively seek bookkeeping help. If you want to grow a remote bookkeeping business, focus on referrals, LinkedIn outreach, and content marketing — helpful posts and insights build trust and attract clients without aggressive selling.

Do I need to be tech-savvy to run a bookkeeping business?

Not necessarily. Most modern software is user-friendly and intuitive, even for those who aren’t tech-savvy. Plus, many platforms offer support, training, and resources to help you get started.

TaxDome, for example, provides free onboarding sessions and bootcamps to help you get up and running, along with best practices to streamline your workflow. With the right tools and a bit of guidance, running an online bookkeeping business can be much easier than you think.

Bookkeeping business startup checklist

Whether you’re transitioning from a job or expanding your freelancing into a full-scale business, this checklist will help you make sure you’ve got everything covered.

Go through each section below and see where you stand. If you can check off most of these, you’re ready to launch!

Final thoughts

A bookkeeping business can be highly profitable and flexible, but success comes from building a solid foundation.

By making smart decisions, you’ll be in the best position to attract great clients and scale sustainably.

If you’ve ever dreamed of financial freedom, now’s the time to start your own bookkeeping business and take control of your career.