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How to start a bookkeeping business in 12 steps

By QuickBooks
Published on July 3, 2025

Wondering how to start a bookkeeping business in 2025? This comprehensive guide walks you through 12 steps to launch, from choosing your business structure to setting up your software and finding your first clients.

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What is bookkeeping?

Bookkeeping is the process of recording financial transactions for a business or organization. This includes documenting purchases, sales, receipts, and payments.

What does a bookkeeper do? Bookkeepers organize these details in tools like bookkeeping software or accounting ledgers to make sure nothing slips through the cracks. They also prepare the records that accountants use to create key financial reports, like income statements and balance sheets.

The demand for bookkeeping in 2025

In 2025, bookkeeping continues to be a high-demand profession with strong earning potential, evolving opportunities, and room for growth across a variety of industries.

Take a look at some of these stats and trends:

  • Bookkeepers are ranked among the top 15 most in-demand jobs in the U.S. for 20251
  • The unemployment rate for bookkeepers was just 1.7% in late 2024, well below the national average2
  • The worldwide market for bookkeeping, accounting, and financial auditing services is projected to grow from $532.6 billion in 2024 to $553.2 billion in 2025, and reach $671.1 billion by 20293
  • The domestic bookkeeping industry alone is valued at $66.9 billion, offering both job security and entrepreneurial opportunity4

All signs point to one thing: bookkeeping is a smart move in 2025. With strong demand, solid income potential, and plenty of room to grow, it’s a great time to get started—whether you’re easing in as a side hustle or going all in on your own business. The market’s there, and businesses need your help.

Sources:

  1. Randstad
  2. Kogod School of Business
  3. The Business Research Company
  4. IBISWorld

The benefits of starting a bookkeeping business

Let’s look at some of the key advantages of starting a bookkeeping business:

Low startup costs

Unlike other businesses, bookkeeping doesn’t require a lot of upfront investment. With a reliable computer, internet access, and bookkeeping software like QuickBooks, you can start from home without renting office space.

Flexible schedule

Bookkeeping gives you control over your time. You can set your own hours, work around family commitments, or even take on clients in different time zones. Many bookkeepers start part-time and grow into full-time as they build their client base.

Remote-friendly business

Wondering how to start a bookkeeping business from home? You’re in luck because bookkeeping is one of the most remote-friendly businesses you can start. With cloud-based tools like QuickBooks, you can securely access client records, share documents, and manage financial data from anywhere. That means you’re not tied to an office—or even a specific city.

Scalable growth

You can start as a solopreneur and grow over time. As you gain more clients, you might hire other bookkeepers, add payroll services, or specialize in a niche like nonprofit or restaurant bookkeeping.

The hardships of starting a bookkeeping business

While there are benefits, starting a bookkeeping business isn’t without its challenges. Here are some common hurdles to keep in mind:

Finding your first clients

Getting started can feel tough when you don’t have a client base yet. Many new bookkeepers start by reaching out to their personal network, joining local small business groups, or listing services on sites like Upwork or LinkedIn. Expect a learning curve in marketing yourself and building trust.

Technology learning curve

Bookkeeping software makes life easier, but there’s still a learning curve. You’ll need to get comfortable with tools like QuickBooks, Excel, and cloud storage systems. Plus, each client may use different platforms, so you need to be adaptable, as well. 

For learning QuickBooks, consider exploring the QuickBooks ProAdvisor Academy for training and certifications.

Wearing many hats

When you start your own bookkeeping business, you’re managing, but you might also be handling marketing, sales, customer service, and troubleshooting technical issues. Tasks like building a website or promoting your services may feel unfamiliar, but they’re part of getting your business off the ground. It can be a lot at first, but with time, you’ll find your rhythm. Plus, you can always outsource as you grow.

Balancing cash flow and time

When you’re just starting out, you might not have a steady stream of clients right away. That can make managing your cash flow and your time tricky. It’s easy to spend most of your day on tasks that don’t directly earn money, like setting up systems, invoicing software, or marketing your services. To stay ahead, start with a financial cushion if you can, and build a schedule that sets aside time for both client work and business development.

12 steps to start a bookkeeping business

If you’re ready to launch your new venture, here’s how to start a bookkeeping business in 12 steps.

1. Create a business plan

A business plan is your roadmap. It outlines what your bookkeeping business will do, who you’ll serve, and how you’ll grow. Even if you're starting solo from home, taking the time to put your ideas on paper will help you stay focused and organized.

Your business plan should include:

  • A mission statement: What’s your purpose? Why bookkeeping, and why now?
  • Services you’ll offer: Will you handle basic bookkeeping, payroll, invoicing, or niche services like nonprofit or real estate bookkeeping?
  • Target market: Are you focusing on local small businesses, online entrepreneurs, or a specific industry?
  • Pricing model: Will you charge hourly, offer monthly packages, or use value-based pricing?
  • Marketing strategy: How will people find you? Think about your website, social media presence, and referrals.
  • Financial projections: Outline your expected startup costs, monthly expenses, and income goals.

A solid business plan also makes it easier to secure funding if you need it or to explain your services clearly to potential clients.

For more information, check out our article on how to write a business plan and download our free business plan template.

2. Decide on a business structure

Before you launch your bookkeeping business, you’ll need to select a legal structure. This decision affects everything from how you file taxes to your level of personal liability, so it’s worth taking the time to get it right.

Here are the most common types of business structures to choose from:

  • Sole proprietorship: A sole proprietorship is the simplest option. You operate as an individual, and you report your business income on your personal tax return. While it’s easy to set up, there’s no legal separation between you and your business, which means your personal assets could be at risk if there are any legal or financial issues.
  • Partnership: If you're starting the business with someone else, a partnership might make sense. You’ll share ownership, profits, and legal responsibilities, so it’s important to have a written agreement outlining each partner’s role and obligations.
  • Limited liability company (LLC): An LLC offers a mix of simplicity and legal protection. It separates your personal assets from your business, which can protect you if something goes wrong. Many small business owners and freelancers choose this structure because it’s flexible and provides credibility with clients.
  • Corporation: A corporation is more complex and typically used by larger businesses. It offers strong liability protection and potential tax benefits, especially if you choose to file as an S corporation. That said, corporations involve more paperwork and formalities, so they’re not always the best fit for solo bookkeepers just starting out.

If you're unsure, many people start as a sole proprietor or LLC and adjust as the business grows. When in doubt, talk with a legal or tax advisor to make the best choice for your goals and risk tolerance.

3. Register the business

Once you’ve decided on a business structure, the next step is making it official, so you can stay compliant with the law. What you’ll need to do depends on your location and structure, but here are the basics:

  • Register your business name: If you’re using a name that’s different from your legal name (for example, “Bright Books Bookkeeping” instead of “Taylor Smith”), you’ll likely need to file a “doing business as” (DBA) name with your state or county.
  • Apply for an EIN: If you plan to hire employees, open a business bank account, or form an LLC or corporation, you’ll need an employer identification number (EIN) from the IRS, which is like a Social Security number for your business. It’s free and easy to apply online.
  • File with your state: If you’ve set up an LLC, partnership, or corporation, you’ll usually need to file formation documents with your state’s Secretary of State office. This step usually comes with a small filing fee.
  • Check for local permits or licenses: Some cities or counties require small business licenses, even for home-based businesses. Your local small business office or chamber of commerce can point you in the right direction.

Not sure what your state requires? The Small Business Administration (SBA) has tools to help you find the licenses and registrations you need based on your location.

4. Sort out all legal needs

Once you register your business, you’ll need to sort out other legal matters. Here what you need to take care of:

  • Get liability insurance: Even if you’re confident in your work, it’s smart to carry professional liability insurance (also called errors and omissions insurance). It protects you if a client claims you made a mistake that caused financial harm. There might also be other kinds of insurance you may need, so check out our article on the different types of small business insurance to figure out your options.
  • Consider a surety bond: Some clients may ask you to be bonded. A surety bond acts as a form of guarantee that you’ll handle their financial information honestly and responsibly. It’s not always required, but having one can give clients added peace of mind, especially if you're working with larger companies or government contracts.
  • Draft a client service agreement: Create a simple service contract you can use when onboarding clients. This document should outline the scope of services, pricing, payment terms, confidentiality, and what happens if either party wants to end the relationship. Ultimately, this agreement protects both you and your client by setting clear expectations and helping avoid misunderstandings down the road. 

You can find service agreement templates online, or work with a small business attorney to create one that’s tailored to your offerings.

5. Obtain certifications and education

You don’t need a degree in accounting to become a bookkeeper, but learning the basics and getting certified can give you a competitive edge, especially when you're starting out and clients are looking for someone they can trust.

If you’re new to bookkeeping, start by learning the fundamentals of double-entry bookkeeping, financial statements, and common business transactions. You can find affordable online courses through community colleges, professional organizations, or platforms like Coursera and Udemy.

Once you’re comfortable with the core concepts, consider getting certified. Here are a few well-respected options:

Ready to get certified? Start your QuickBooks ProAdvisor Certification today.

6. Find a bookkeeping software

Bookkeeping is a lot easier when you have the right tools. A good software platform helps you stay organized, cut down on manual work, and look more professional when working with clients. It’s one of the best investments you can make early on.

QuickBooks Online is one of the most popular tools for small business bookkeepers. It’s designed to work for beginners and pros alike, with features that support every stage of growth. In fact, 85% of customers feel more confident about their bookkeeping accuracy using QuickBooks Online. With QuickBooks, you can:

  • Connect bank accounts and automatically track expenses and income
  • Send invoices and match payments without manual entry
  • Generate reports like profit and loss statements and balance sheets
  • Capture receipts and business miles using your phone
  • Set user permissions and customize workflows as your team or client base grows
  • Sync with Excel for more advanced data handling
  • Access your books from anywhere with the mobile app

Before committing, take advantage of free trials and demos to see what works best for your workflow and client needs. If you're brand new to the software, consider earning a certification (like QuickBooks ProAdvisor) to boost your skills and credibility.

7. Choose a pricing structure

One of the most important decisions you’ll make as a bookkeeping business owner is how to price your services. Your pricing should reflect the value you bring, the time you spend, and the type of clients you want to attract.

Every bookkeeping business is different, but most pricing strategies fall into one of these three categories:

When choosing your structure, think about your experience, the services you offer, and how you want to scale your business. It’s okay to start with hourly pricing and shift to monthly packages or value-based pricing as you gain confidence and client trust. Also, don’t forget to factor in expenses like admin time, software, and taxes when setting your rates.

Additionally, check out what other bookkeepers in your area or niche are charging. Sites like Upwork, LinkedIn, or bookkeeping Facebook groups can give you real-world benchmarks.

8. Design a website

Your website is usually the first impression potential clients will get, so you must make it count. However, you don’t need to be a web designer to build something great. Website builders like Wix, Squarespace, or WordPress make it easy to create a clean, mobile-friendly site without writing code. 

At a minimum, your site should include:

  • A homepage that explains who you are and who you help
  • A list of services with clear, easy-to-understand descriptions
  • Pricing or packages (optional, but helpful if you want to be transparent)
  • A contact page with a form or email address for inquiries
  • An “About” page to share your background and what makes you different
  • A “Book a Free Consultation” button to make it easy for leads to connect with you

As you grow, you can add testimonials, a blog, or FAQs to answer common questions and boost SEO (search engine optimization). But to start? Keep it simple, clear, and focused on your ideal client

9. Develop a marketing plan

The next step is letting people know your business exists, and a solid marketing plan can help do just that. You don’t need a huge budget or complicated strategy to get started. Focus on a few intentional efforts and stay consistent.

Here are a few marketing tactics to consider:

  • Create simple marketing materials: A professional email address, a digital brochure, or a simple pitch deck can all help you communicate your value.
  • Claim your online presence: Set up a Google Business Profile and optimize your website with relevant keywords.
  • Get active on social media: Share tips, updates, and wins on LinkedIn, Instagram, or Facebook to build trust and stay visible.
  • Join local or online business groups: Referrals typically come from real connections, so don’t be afraid to network.

It’s also a good idea to set small goals, like reaching out to 3 people a week or posting once every Tuesday. This way, you can stay consistent without burning out.

10. Receive funding

Whether it’s covering software subscriptions, marketing tools, or just keeping the lights on while you build your client base, some upfront funding for your business can ease the pressure.

Here are a few funding options to consider:

  • Personal savings: Many solo bookkeepers start by using their own savings to cover early expenses. If you go this route, be sure to set a clear budget so you don’t overspend.
  • Friends and family: A small loan or investment from someone you trust can give you breathing room in the early months. Just be sure to put the terms in writing, even if it’s informal.
  • Business credit card: A business credit card can help cover small expenses while also building your business credit history, as long as you manage it responsibly.
  • Small business loans and grants: If you need more capital, check out programs through the SBA (Small Business Administration), your local chamber of commerce, or state-run small business development centers. Some grants are specifically designed for women, minority-owned businesses, or first-time entrepreneurs.
  • Microloans: If you don’t need a large loan, microloans may be a better fit. Organizations like Kiva, Accion, and the SBA offer small, low-interest loans, usually with more flexible credit requirements. They’re a great option if you’re just starting out and don’t qualify for traditional funding yet.
  • Quickbooks Capital: If you're already using QuickBooks, you may qualify for a QuickBooks Term Loan or QuickBooks Line of Credit. These options are designed to help your small business manage cash flow, cover operating expenses, and fund growth. Plus, they come with no origination fees or prepayment penalties.

11. Set up your office and equipment

When it comes to setting up your workspace, you have the flexibility to work virtually or in a traditional office setting. 

Virtual 

Many bookkeepers work entirely online, using cloud-based tools to manage client work, hold virtual meetings, and securely share documents. A quiet space at home with a laptop, reliable Wi-Fi, and a few key tools can be all you need.

Office

If you prefer meeting clients in person or need more separation between work and home life, a dedicated office space or co-working setup might be a better fit. Just be sure it’s professional, private, and secure, especially when handling sensitive financial documents.

Here’s a basic list of what you’ll need to get started:

  • A reliable computer or laptop
  • High-speed internet connection
  • Bookkeeping software (like QuickBooks)
  • Cloud storage for document sharing (e.g., Google Drive or Dropbox)
  • A printer/scanner combo, if you handle any paper documents
  • Headphones and a webcam for client calls
  • A comfortable desk and chair

Your setup doesn’t have to be fancy. It just needs to support the way you work, so choose what fits your workflow, budget, and client needs.

12. Create a client base

Now that your business is set up, it’s time to find the people you’re here to help.

Start with your personal network—e.g., friends, family, former coworkers, or small business owners you already know. Let them know what services you offer and ask if they know anyone who could use your help. Sometimes, your first few clients come from a simple referral.

From there, make it easy for potential clients to take action. Offer a clear, low-pressure way for them to connect with you, like a free consultation or a simple contact form on your website. If someone reaches out, respond quickly and professionally. 

Then, focus on building trust and delivering value. Here’s what to do:

  • Have a strong onboarding process: Send a welcome email, outline next steps, and walk new clients through what they can expect.
  • Communicate regularly: Whether it’s monthly check-ins, simple updates, or quick wins, staying in touch shows you’re engaged and proactive.
  • Ask for feedback: As you wrap up a project or hit a milestone, ask how things are going. It shows you care and helps you improve.
  • Encourage referrals: Once you’ve delivered great work, happy clients often want to spread the word. Don’t be shy about asking if they know someone else who could use your help.

Building a client base doesn’t happen overnight, but with consistency and the right approach, you’ll start to attract the kinds of clients you want to work with.

Who bookkeeping is right for

If you're thinking about starting a bookkeeping business, it helps to know if the role fits your strengths and work style. Here are a few traits that tend to make someone a good fit:

Do you need experience to start a bookkeeping business?

You don’t necessarily need prior professional experience to start a bookkeeping business, but you do need a solid foundation in bookkeeping principles and accounting software.

You can build your foundation through online classes, community college courses, or self-paced tutorials that cover bookkeeping basics and accounting principles. You should also learn how to use accounting software like QuickBooks, considering it's the #1 accounting software for small businesses with 6.5 million customers worldwide.

To boost your credibility, consider earning a certification like the Certified Bookkeeper (CB) designation from the American Institute of Professional Bookkeepers (AIPB) or becoming a QuickBooks ProAdvisor. These credentials can help you stand out, especially when you're just starting out and trying to win your first clients.

How much does it cost to start a bookkeeping business?

The exact amount it costs to start a bookkeeping business depends on how lean or built-out you want your setup to be. If you're starting from home with equipment you already own, your costs could be under $1,000. If you're investing in certifications, software, and a more polished setup from day one, you might spend closer to $2,500 or more.

Here’s a look at what you might spend to get up and running:

Based on these estimations, your total could be:

  • Lean startup (DIY, working from home): $300-$1,500
  • More built-out setup (better equipment, professional website, insurance, etc.): $2,000-$8,700+

If you decide to rent office space, hire staff, or run larger ad campaigns, startup costs can rise quickly to tens of thousands of dollars.

If you’re unsure where to start or want a more personalized estimate, it’s a good idea to speak with a small business accountant or startup advisor who can help you plan based on your specific goals and location.

Bookkeeping as a side hustle

Whether you're a stay-at-home parent, full-time employee, or recent graduate, offering bookkeeping services on the side lets you test the waters before going all in on starting a business.

Many bookkeeping tasks are recurring (e.g., monthly bank reconciliations or quarterly reports), so you can work with clients on a predictable schedule that doesn’t interfere with your day job. Most communication and deliverables can be handled asynchronously, which means you don't have to be available during traditional business hours.

As a side hustle, bookkeeping also gives you room to:

  • Gain real-world experience with a handful of clients
  • Build a strong portfolio slowly and sustainably
  • Explore niches you may want to specialize in later (like ecommerce, real estate, or nonprofits)
  • Learn how to manage your own business without overwhelming yourself

You can start with one client, get comfortable with the tools and systems, and gradually take on more as your confidence and availability grow. Some side hustlers keep it that way, while others use it as a stepping stone to full-time self-employment.

What to expect to make it as a bookkeeper

According to the most recent data from the U.S. Bureau of Labor Statistics, the median pay for a bookkeeper is $49,210 annually and $23.66 per hour. This is based on traditional employment and can vary depending on your experience, location, and industry.

However, as a bookkeeping business owner, your income potential can be much higher ($100,000+), especially if you’re offering specialized services, managing multiple clients, or running your business efficiently. For example, if you charge $500 per month per client and work with 20 clients, that’s $10,000 per month or $120,000 per year. Even with fewer clients, you can earn a strong income if you price your services well and keep your operations lean.

Here are a few key factors that can influence how much you make as a bookkeeping business owner:

Boost productivity with QuickBooks accounting software

Starting a bookkeeping business with QuickBooks means you’re backed by the #1 accounting software for small businesses.

From tracking income and expenses to managing invoices, running reports, and syncing with your bank accounts, QuickBooks simplifies your day-to-day operations so you can focus on growing your business. You can even access your books on the go with the mobile app or customize workflows as your client base expands.

 

Boost productivity with QuickBooks accounting software.


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