My plan

How to Start a Bookkeeping Business

Bookkeeping is a low-cost, home-based business with recurring monthly revenue. Credibility comes from accuracy, software skills and clear engagement letters, not expensive equipment.

Reviewed November 3, 2026 · Sources linked inline

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open a bookkeeping cost worksheet →

SBA 7(a) loans in this industry

Other Accounting Services (NAICS 541219): 1,032 loans approved in FY2024–FY2026. Median loan $103,100; middle half $50,000–$328,875.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How many bookkeeping & other accounting businesses are there?

Nationwide: 47,699 employer establishments and 258,557 without employees.

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Reliable computer with encrypted backup
  • Accounting software (cloud)
  • Secure client document portal
  • Password manager and multi-factor authentication

Licenses and registration

  • Register your business or DBA; most cities require a home-occupation or business license.
  • Bookkeeping generally does not require a CPA license, but you may not represent yourself as a CPA or perform attest work.
  • Preparing tax returns for pay requires an IRS Preparer Tax Identification Number (PTIN); some states add more rules.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • Register an LLC or corporation with your state's business registration office (sole proprietors usually register a trade name/DBA instead). [source]

Insurance to consider

  • Professional liability (errors & omissions)
  • Cyber liability
  • General liability (if meeting clients in person)

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Software subscriptions
  • Insurance
  • Continuing education
  • Marketing

Use the break-even calculator to see how many jobs or sales cover them.

Common mistakes

  • No written engagement letter defining scope
  • Hourly pricing instead of monthly packages
  • Weak data security
  • Taking on tax work without the required credentials

Finding customers

  • Referral partnerships with CPAs
  • Niche focus (e.g., contractors, restaurants)
  • Software partner directories
  • LinkedIn and local networking

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

Sources