How to start a bookkeeping business: A step-by-step guide for 2025

Starting a bookkeeping business can be an exciting and profitable venture for those with a knack for numbers. In fact, the U.S. Bureau of Labor Statistics forecasts an average of approximately 183,900 annual job openings for bookkeeping, accounting, and auditing clerks over the next 10 years. Many business owners initially handle their own bookkeeping when launching their companies, but maintaining accurate and compliant records becomes increasingly complex and time-consuming as operations expand. This is where your bookkeeping expertise becomes essential, providing businesses with the valuable support they need to manage their financial records efficiently and accurately.

Ready to launch a thriving bookkeeping business? In this comprehensive guide, we’ll go over everything you need to know, from understanding the core responsibilities of a bookkeeper to setting up your office and attracting clients. Let's get started.

Day-to-day bookkeeping responsibilities

Bookkeeping skills and qualifications needed to start your own business

Bookkeeping qualifications and certifications for becoming a bookkeeper

Step 1: Determine your market and industry

Step 2: Develop your business plan

Step 3: Establish your business structure

Step 4: Register your new business

Step 5: Consider insurance

Step 6: Decide on your office

Step 7: Find the right bookkeeping software

Step 8: Set up your business accounts and services

Step 9: Strategically price your services

Step 10: Explore various funding options

Step 11: Market your business

Step 12: Connect with your clients

Your blueprint for bookkeeping business success

Day-to-day bookkeeping responsibilities

Here is a breakdown of typical bookkeeper job responsibilities:

Transaction recording

Recording all financial transactions, such as sales, purchases, and expenses, into the general ledger to provide an accurate overview of a company's financial activities.

Reconciliation

Comparing the general ledger with bank and credit card statements and other financial documents to spot and resolve discrepancies, ensuring correct and reliable financial records.

Invoicing

Creating and sending invoices to clients or customers for goods or services rendered, detailing the amount owed and payment terms.

Payroll management

Calculating and distributing employee wages, salaries, bonuses, and commissions, and deducting taxes and other contributions.

Expense tracking

Monitoring and categorizing all business expenses, such as rent, utilities, supplies, and travel, to maintain a clear understanding of where money is being spent.

Financial reporting

Generating comprehensive financial reports, such as balance sheets, income statements, and cash flow statements, to provide insights into a company's financial performance and position.

Bookkeeping skills and qualifications needed to start your own business

Bookkeeping requires a combination of technical skills and personal attributes. Let’s look at some key bookkeeping competencies and qualifications:

Attention to detail

Accuracy is a must in bookkeeping. Even a slight mistake can lead to significant issues down the line.

Organizational skills

Bookkeepers must be highly organized and be able to manage multiple clients and their records efficiently.

Technical proficiency

A bookkeeper should be proficient with accounting software and all its tools and features to manage documents and automate tasks.

Analytical thinking

A proficient bookkeeper should be able to analyze financial data and quickly identify errors, inconsistencies, or fraud red flags.

Communication skills

Clear communication with clients is necessary to understand their needs and explain financial concepts.

Bookkeeping qualifications and certifications for becoming a bookkeeper

Let’s break down the key education paths, certifications, and experience that can help you build a strong foundation as a professional bookkeeper.

Education

A formal degree in accounting or finance can certainly be an asset, but it’s not always necessary. Many successful bookkeepers have training or certificates.

Certifications

Obtaining certifications can enhance your credibility. Consider certifications like Certified Bookkeeper (CB) from the American Institute of Professional Bookkeepers (AIPB) or the Certified Public Bookkeeper (CPB) from the National Association of Certified Public Bookkeepers (NACPB). You can also receive QuickBooks certification, which can give you a competitive edge since QuickBooks is one of the most popular accounting software programs. 

Experience

Practical experience, whether through internships, part-time jobs, or previous employment, can provide a solid foundation for your business.

Step 1: Determine your market and industry

Consider what types of businesses you want to serve. Do you want to work with small businesses, freelancers, or larger corporations? Do you have niche experience? Each market has its unique needs and challenges. 

For example, small businesses might need more hands-on help with their finances, while larger companies require more sophisticated financial reporting. E-commerce bookkeepers must understand digital marketplace nuances, while a healthcare client will require an understanding of insurance claims and compliance with healthcare regulations.  

Step 2: Develop your business plan

A solid business plan is the foundation of a successful venture. Your business plan should outline your goals, target market, competition, and financial projections. Here are some components to include:

Executive summary

The executive summary is a high-level overview of your business, including its purpose, mission, and goals. It should be concise yet compelling and summarize key details, such as:

• What services you offer (e.g., general bookkeeping, payroll, tax preparation).
• Your target market (freelancers, small businesses, e-commerce, etc.).
• Your unique value proposition (i.e., what sets your business apart?).
• A brief financial outlook that highlights projected revenue and expenses.

Business description

Your business description is where you’ll provide detailed information about your business model. Will you be working with small businesses, freelancers, or larger companies? Are you planning to specialize in a specific industry, like real estate or e-commerce? Will you be running your business remotely or meeting clients in person?

Ultimately, this section should be your way of explaining what you do and who you help.

Market analysis

A market analysis helps you determine if there’s demand for bookkeeping services and how your business fits in. Who needs bookkeeping help, and what are they looking for? Are small business owners struggling to keep up with their books? Are startups looking for financial guidance?

Take a look at other bookkeepers in your area or industry to see what they’re offering and how they price their services. This research will help you figure out how to stand out from the competition and price your services competitively.

Organization and management

This section should go into your business structure and management team. Even if you’re starting solo, outlining your business structure is key. Make sure to Include:

• Your business structure (sole proprietorship, LLC, corporation) and its legal implications.
• Whether you plan to hire employees or subcontract other bookkeepers.
• Any advisors or mentors you’re working with, such as accountants or legal professionals.

As your business grows, having a defined structure makes scaling easier.

Services offered

This section is where you provide a detailed list of the services you’ll provide. Will you focus on basic bookkeeping, payroll processing, tax preparation, or financial reporting? Do you plan to offer additional services, like business consulting or cash flow management?

Also, consider how you’ll structure your pricing— e.g., hourly, per project, or through monthly retainers—to create an offering that aligns with your financial goals.

Marketing and sales strategy

In this section, you should outline how you plan to attract and retain clients. You can attract new clients through networking, social media, referrals, or paid ads. A professional website with SEO-optimized content can make it easier for people to find you, and offering free consultations can help turn potential clients into long-term customers.

To stand out from the competition, focus on what makes your business unique—whether it’s affordable pricing, industry expertise, or top-notch service. Tracking your marketing efforts and refining your strategy will help ensure long-term success.

Funding request

You may need initial funding to cover expenses like software, website development, certifications, marketing, and insurance. This section should outline how much funding you need, how you plan to use it, and whether you’ll be self-funding, applying for small business loans, or seeking outside investors. Ultimately, giving a clear breakdown of how you’ll allocate these funds can help you get financial support.

Financial projections

For your bookkeeping business to succeed, it needs to be financially sustainable. That means having a clear idea of how much money you’ll make and what your expenses will be. Estimating your income for the first few years, along with costs like software, licenses, marketing, and taxes, will help you set realistic financial goals. Also, if you plan to expand or hire additional bookkeepers, mapping out your growth milestones will help guide your long-term business decisions.

Is bookkeeping a profitable business?

Bookkeeping can be a profitable business, especially if you carve out a niche and get smart about how you package and price your services. As you build your business plan, think about which services you’ll offer and what kind of income you want to generate. Many bookkeepers boost their earnings by adding things like payroll support, cash flow guidance, or even tax prep into the mix. Plus, you can minimize overhead and keep more of your earnings by running a home-based or virtual bookkeeping business.

Step 3: Establish your business structure

Choosing the proper business structure is critical as it impacts many aspects of your operations, including taxation and liability protection. The most common structures are sole proprietorship, partnership, limited liability company (LLC), and corporation. Each has its pros and cons:

Sole proprietorship

A sole proprietorship is the simplest and most affordable structure for bookkeepers starting out on their own. It requires minimal paperwork, and your business income is taxed as part of your personal income. Many freelance bookkeepers operate as sole proprietors when getting started.

However, there’s one major drawback—you have no liability protection. If a client sues you for bookkeeping errors or financial mismanagement, your personal assets (home, savings, etc.) could be at risk.

Partnership

If you’re launching your bookkeeping business with another professional, a partnership allows you to share responsibilities, resources, and profits. This structure is easy to set up and has pass-through taxation, meaning profits and losses are reported on each partner’s personal tax return instead of a separate business return.

However, there’s a big catch: you and your partner are both personally responsible for any business debts or legal issues. If your partner makes a financial mistake or gets sued, you could also be held liable. To protect both of you, it’s important to have a written partnership agreement that clearly defines each person’s role, how profits will be split, and what happens if one partner wants to leave the business. 

Limited liability company (LLC)

An LLC provides personal liability protection while keeping tax and administrative requirements relatively simple. If your business ever faces a lawsuit or financial trouble, an LLC helps ensure that your personal savings, home, and other assets aren’t at risk.

One of the biggest benefits of an LLC is its flexibility with taxes. You can choose to be taxed as a sole proprietor, partnership, or corporation, depending on what works best for your financial situation. While setting up an LLC requires state registration and filing fees, it’s still much easier to manage than a corporation.

Corporation

A corporation is the most complicated business structure, but it also offers the strongest legal protection. Unlike sole proprietors or partners, the business itself is responsible for debts and legal issues—not the owners. This makes it a good option for bookkeepers who plan to grow into a larger firm, hire employees, or attract investors.

That said, corporations come with more regulations, paperwork, and tax requirements. They must file separate tax returns, follow strict record-keeping rules, and may face double taxation (once on corporate profits and again on dividends paid to owners.

Step 4: Register your new business

Once you’ve chosen your business structure, you need to register your business with the state. Sole proprietorships and partnerships usually require minimal registration, while LLCs and corporations must file formation documents, such as articles of organization or articles of incorporation. Some states also require an operating agreement or bylaws to define how the business is managed. The requirements vary by state, so check with your local government for specific steps. 

You may also need an employer identification number (EIN) from the IRS, especially if you plan to hire employees, file separate business taxes, or open accounts under your business name. Even if not required, having an EIN helps separate personal and business finances.

Step 5: Consider insurance

A single lawsuit, client dispute, or cyberattack could cost you thousands and damage your reputation. However, the right insurance can protect your business from financial losses and legal risks, giving you peace of mind as you grow. Consider these small business insurance options for your bookkeeping business:

Errors and omissions (E&O) insurance

Also known as professional liability insurance, E&O insurance is arguably the most important coverage for bookkeepers. It protects you if a client claims you made a mistake, left something out, or caused financial loss. If you’re sued, E&O insurance can cover legal fees and settlements.

General liability insurance

If you meet clients in person, general liability insurance protects your bookkeeping business from accidents, injuries, or property damage that may happen during business operations. For example, if a client slips and falls at your office or if you accidentally damage a client’s property, this coverage can help pay for medical expenses, repairs, and legal costs.

Cyber insurance

Since bookkeepers handle sensitive financial data, cyber insurance helps protect your business against data breaches, hacking, and fraud. If client financial records or personal information are compromised, cyber insurance can cover legal fees, notification costs, and data recovery.

Workers’ compensation

If you plan to hire employees, you may need workers’ compensation insurance to cover medical bills and lost wages if they get hurt or sick on the job. Even if your state doesn’t require it, having this coverage can help you protect your business from lawsuits and show employees that you care about their well-being.

Step 6: Decide on your office 

Next, decide where you will conduct your business. Will you work from home, or will you lease an office space? Each option has its advantages and disadvantages.

Consider your budget and business needs before making a decision. If you’re just starting out and want to keep costs low, a home office is a great option, especially if most of your work is done remotely. If you plan to meet clients in person or grow your team, leasing an office may help you present a more professional image and create a structured work environment.

Step 7: Find the right bookkeeping software

Bookkeeping software is a standard industry tool that can automate tasks, simplify complex processes, and give you valuable financial insights. It enhances accuracy, saves you time, and allows for scaling to more effectively meet your and your clients' goals. 

QuickBooks Online is an example of a bookkeeping software solution that can empower your business. This cloud-based platform offers:

Comprehensive features

QuickBooks Online offers an extensive suite of features to handle your bookkeeping tasks, including invoicing, expense tracking, and financial reporting. Take advantage of this comprehensive platform to streamline your workflow, save time, and minimize errors.

Intuitive interface

Even if you're not tech-savvy, QuickBooks Online's user-friendly interface makes it easy to navigate and understand. Its intuitive design guides you through tasks effortlessly, allowing you to focus on your bookkeeping work rather than grappling with complex software.

Scalability

Whether you're a solo bookkeeper just starting out or an experienced bookkeeper looking to grow your team, QuickBooks Online can adapt to your business's evolving requirements. The platform offers various plans and features to accommodate your changing demands as your business expands.

Client collaboration

QuickBooks Online facilitates seamless collaboration with your clients. You can share financial data, reports, and insights directly through the platform, enhancing communication and transparency.

Step 8: Set up your business accounts and services

Before launching your business, you'll need to set up a variety of accounts and services, from bank accounts to accounting software, to ensure everything runs smoothly. By setting up the following, you'll be well-equipped to manage your bookkeeping business efficiently and provide excellent client service. 

Business checking account

A business checking account is essential for handling day-to-day transactions, such as receiving client payments and paying business expenses. It helps you separate personal and business finances, simplifying accounting and tax filing.

Business savings account

A high-interest savings account is a good place to set aside money for taxes, emergency funds, or future funds to reinvest back in your business. It's a best practice to regularly transfer a portion of your income into this account to prepare for unexpected expenses.

Bookkeeping software

Software, like QuickBooks Online, streamlines bookkeeping tasks with intuitive interfaces, robust features, and scalability, making it ideal for new businesses. Before working with clients, ensure you've fully set up your chosen software and understand its functionality.

Professional email and phone services

Enhance your professional image by setting up a business email address and phone number to communicate with clients. It’s important to keep personal and business communications separate.

Customer relationship management system

A customer relationship management (CRM) system helps you keep track of client information, communication, and project timelines, ensuring efficient service delivery.

Everything else, from invoicing to payments and more

Tools to facilitate invoicing, payment processing, and secure data are essential for any bookkeeping business. Choose bookkeeping software that can seamlessly integrate these features to enhance your operations.

Step 9: Strategically price your services

How much should a bookkeeper charge per client? Bookkeeping rates can vary widely depending on experience, industry focus, and the complexity of services provided. For example, basic monthly bookkeeping for small businesses may range from $200 to $500 per month, while more comprehensive services—including payroll, reporting, and financial consulting—can run up to $2,500+ per month.

When pricing your bookkeeping services, you must find the perfect balance between attracting clients and ensuring your business thrives. Here are some tips to get the balance right: 

Scope the competition

Look at what other bookkeeping businesses in your area or industry are charging. Understand the market landscape and what clients are willing to pay. 

Know your worth

Don't undervalue your skills and expertise. Calculate your costs, including software, marketing, and the value of your time. Then, add a healthy profit margin to ensure your business is sustainable. 

Offer a menu of options

In bookkeeping, one size doesn't fit all. Consider offering different pricing models, such as hourly rates, project-based fees, or monthly packages. This allows your clients to choose the best option for their needs and budget.

Highlight your value

Emphasize the benefits you bring to clients, such as saving them time, reducing stress, and helping them make informed financial decisions.

Be transparent

Be upfront and honest about your pricing. Build trust and set expectations by clearly communicating what's included in each package and any potential additional fees.

Step 10: Explore various funding options

As the adage goes, it takes money to make money. In other words, launching a new business typically requires some financial investment. Tapping into your personal savings is the simplest option, but it may not be feasible for everyone. If you need a boost to get your bookkeeping business off the ground, consider these funding options:

Small business loans

Banks, credit unions, and online lenders offer loans specifically tailored for small businesses. However, you'll typically need a solid business plan and a good credit history.

Crowdfunding

Platforms like Kickstarter and Indiegogo allow you to raise funds from a large pool of contributors in exchange for rewards or equity in your business.

Angel investors

These are individuals who invest in startups in exchange for ownership equity. They can provide not only financial backing but also valuable mentorship and connections.

Small business grants

Government agencies and private organizations sometimes offer grants to small businesses in specific industries. Research available grants and see if your bookkeeping business qualifies.

Step 11: Market your business

Once your business is ready to launch, tell the world about it and create a go-to-market strategy. You can find clients through various channels, including networking, online platforms, referrals, social media, and content marketing. Here are some ideas for attracting clients:

Digital marketing

Leverage online platforms like social media, your website, and email marketing to reach a wider audience and showcase your expertise. Digital marketing is an ongoing process, so be consistent and keep building your online presence. 

Network

Attend industry events, join trade organizations like the National Association of Certified Public Bookkeepers, and connect with other professionals in your field. Word-of-mouth referrals can be a powerful source of new clients. If you’re qualified, you can apply to join the QuickBooks Live Expert team and offer your expertise to small business owners and individuals who need bookkeeping assistance. 

Share your knowledge

Share valuable content, such as blog posts, articles, or social media updates, that demonstrate your knowledge and build trust with potential clients.

Step 12: Connect with your clients

As you gain clients, ensure that you build and maintain strong relationships with them.

Provide seamless onboarding

Welcome new clients with a transparent, efficient onboarding process that outlines expectations, services, and communication channels. This may include a packet listing your services and fees, a timeline for deliverables, and a secure portal for clients to access their financial information. 

Keep communication lines open

Maintain open communication with your clients, providing regular updates. Address all questions and concerns as soon as possible.

Welcome client feedback

Solicit client feedback from your clients to identify areas for improvement and ensure they are happy with your services. Encourage them to share their thoughts and suggestions.

Ask for referrals

Leverage positive word of mouth to grow your business. Encourage satisfied clients to refer you to their friends and colleagues.

Your blueprint for bookkeeping business success

Starting a bookkeeping business is an exciting journey that requires careful planning and execution. From setting up your business accounts to pricing your services strategically and showcasing your expertise, each step is vital to your success. With the insights and tools from this guide, you're ready to build a thriving business.

You should also choose the right accounting software for your business. QuickBooks Online Accountant is built specifically for bookkeeping professionals, making it easier to manage clients, automate tasks, and stay organized. 

Learn more about QuickBooks Online Accountant so you can set your bookkeeping business up for success.