Written by

Tamatha Hazen

May 7, 2025

Edited by

Jennifer Carlson

Fact-checked by

Tara Farmer

How to start a bookkeeping business

Starting a bookkeeping business from home or online offers incredible flexibility and growth potential. With minimal startup costs and increasing demand for financial organization, you can turn your skills into a profitable venture. This guide will walk you through essential steps to launch, market, and manage your bookkeeping business successfully.

Step 1: Lay the groundwork

Whether you're a seasoned pro or just starting out, launching a bookkeeping business demands more than technical skills—it's about building and growing a successful business. Before you take the leap into this competitive industry, make sure you're prepared to wear two hats: that of a skilled bookkeeper and a savvy business owner.

Consider enrolling in courses or seeking mentorship to strengthen your understanding of entrepreneurship.

• Skills assessment: Take a thorough inventory of your existing bookkeeping skills and experience.

• Business knowledge: Evaluate your previous experience with essential business functions such as marketing, sales, and management.

• Educational investment: Commit to enhancing your knowledge of both bookkeeping best practices and the fundamental principles of business ownership.

Step 2: Craft a business plan

A comprehensive business plan is your secret weapon for success. Think of it as the roadmap that guides you from the spark of an idea to a profitable business. This plan is more than just wishful thinking; it's a detailed strategy that outlines your goals, target market, service offerings, and pricing.

Your business plan should include:

• Executive summary: This is a concise overview of your business concept, mission, and goals.

• Company description: Define what your business is and what makes it unique.

• Market analysis: Demonstrate an understanding of your target market and the competition.

• Service offerings: Clearly articulate the services you're providing.

• Marketing strategy: Determine how you will reach and engage your ideal clients.

• Financial projections: Revenue and expenses can help guide your financial decisions.

Step 3: Find your niche

Now that you've got a solid plan in place, it's time to focus on what makes you special. Instead of trying to be a jack-of-all-trades, concentrate on a specific area of bookkeeping. This is your niche, a specialized area where you can truly shine. To help find your niche:

• Identify your interests: What types of clients or industries are you most drawn to? What tasks do you enjoy doing?

• Research market demand: Is there a need for your chosen niche in your local area or online? Are businesses actively seeking bookkeepers with your specific skillset?

• Assess the competition: Who else is serving your target market? What are their strengths and weaknesses? How can you differentiate yourself?

• Define your ideal client: What are their needs and pain points? How can you tailor your services to best meet their requirements?

Step 4: Choose a legal structure

Choosing the right legal structure for your business is essential. Common options include sole proprietorship, limited liability company (LLC), S-corporation, and C-corporation. For solo bookkeepers, a sole proprietorship is the simplest and most common initial choice. Consult a legal or tax pro to determine the best structure for your needs.

Once you've decided on the right path, register your business with the relevant government entities. You'll likely need to:

• Choose a business name: Make sure the name is unique and not already in use by checking your state's business registration website.

• File formation documents: For a sole proprietorship, you may just need to register your business name if it's different from your own. For an LLC, file articles of organization with your state.

• Obtain an EIN (Employer Identification Number): You'll need an EIN to open a business bank account, hire employees, or operate as a corporation or partnership.

• Open a business bank account: Use your EIN to open a dedicated business bank account. This helps keep your personal and business finances separate and makes tax time easier.

• Register with state and local agencies: Depending on your location and business type, you might need to register for state and local taxes, get business licenses, or comply with zoning rules.

Step 5: Set up the office and software

With the legal formalities out of the way, it's time to create a functional and professional workspace. Whether you envision a traditional office space or a home office for an online bookkeeping business, ensure the space is optimized for productivity.

In addition to choosing the right physical space, you'll need software such as QuickBooks, Xero, or Sage. These will help you serve your clients. Speaking of clients, you'll need to keep their data safe. Implement strong security measures like data encryption, multi-factor authentication, and regular backups.

Step 6: Market your business

Be sure to let the world know that your bookkeeping business is open for business. This requires a comprehensive marketing strategy, one that will combine both online and offline tactics to reach your target audience:

• Join Talo: Expand your reach by listing your business on Talo, a platform designed to simplify the process of finding the right partners for your business.

• Craft a professional website: Establish a credible online presence by showcasing your services, expertise, and client testimonials on a well-designed website.

• Engage on social media: Connect with potential clients and share valuable content on platforms such as LinkedIn, Facebook, and X.

• Network: Attend industry events, join business groups, and cultivate relationships with complementary professionals to generate referrals.

Step 7: Set your rates

Setting your rates starts by researching market rates in your area and calculating your costs. Remember to also consider the unique value you bring to the table. With that information, choose a pricing model that will reflect your expertise whether it's hourly rates, fixed monthly fees, and value-based pricing.

Research these options to determine what best suits your business and niche.

Step 8: Don't give up!

While these simple steps make it sound easy, starting a bookkeeping business is not without its challenges. Expect long hours and lean paychecks, especially in the initial stages of building your client base. Be financially responsible by setting aside savings or securing a line of credit to cover expenses.

Seek guidance from mentors, and, above all, don't give up! With planning and hard work, you can build a bookkeeping business that you are proud of. If you're looking for more guidance on this journey, check out our guide to becoming a bookkeeper.

FAQs about starting a bookkeeping business

How much does it cost to start a bookkeeping business?

The cost to start a bookkeeping business can range from a few hundred dollars for a home-based, solo operation to several thousand dollars if you need to lease office space, purchase extensive software, or hire staff. Key costs often include software, marketing, and registration fees.

How long will it take to start a bookkeeping business?

Starting a bookkeeping business typically takes anywhere from a few weeks to a few months, depending on your background, preparation, and how quickly you act. If you're a beginner, it may take longer since you'll need extra time to become comfortable with bookkeeping software and fundamental accounting principles.

Can I start a bookkeeping business with no experience?

While it's possible to start a bookkeeping business with no experience, it's generally not recommended without some form of education or training. If you're serious about starting a bookkeeping business, consider taking courses or getting certified.

How do I start a virtual bookkeeping business?

To start an online virtual bookkeeping business, you'll need a computer, reliable internet, bookkeeping software, and a strategy for securing clients. Market your services online and focus on building trust with clients through secure communication channels.