Businesses of all kinds will always need bookkeeping services. If you’re considering becoming a bookkeeper, read our guide to learn how to start a bookkeeping business in 2025. We’ll cover everything from the legal side of registering a new business to pricing, marketing and more.
Bookkeeper Duties
Common Bookkeeping Responsibilities
Companies often hire bookkeepers to help them maintain financial records and accounting reports. Among other things, a bookkeeper will often do the following:
- Document and categorize transactions, including income and expenses
- Manage a company’s finances via business accounting software, such as QuickBooks or Xero
- Assess a company’s cash flow
- Prepare financial statements, such as balance sheets and profit and loss statements
How a Bookkeeper Is Different Than an Accountant
Unlike certified public accountants, bookkeepers don’t file tax returns or audit financial statements. Bookkeepers are also not required to have an accounting degree. Unless they are a certified public accountant (CPA), bookkeepers should not prepare tax returns or sign the returns as a paid preparer.
Certifications for Your Bookkeeping Business
Some bookkeepers choose to obtain certifications for their business. Bookkeepers can be certified in various financial platforms, such as QuickBooks, or via training programs. You can also choose to become a certified public bookkeeper to market yourself better as a bookkeeping professional.
Professional associations also offer certifications so that you can hone your skills and market yourself as a professional bookkeeper. For instance, both the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB) offer certification programs.
Create a Business Plan
New businesses, including bookkeeping businesses, depend on a solid business plan to get off on the right foot. Not only will a business plan help you clarify your business goals and objectives, but it can also be used if you seek funding from lenders or investors. In general, a business plan will include the following:
- Executive summary―the “elevator pitch” of your business
- Overview of the business – a more detailed description of your business
- Market/competitive analysis
- Description of key products and services provided
- Marketing and sales plan
- The proposed budget and financial projections
For a bookkeeping business, you may also want to include information regarding your niche and any certifications that you have as well.
Choose a Business Name
You want your business name to reflect you as a person and the type of services you provide. Your business name is the first thing that lets customers, clients, competitors and others in the marketplace know about who you are and what you do.
Register Your Business
Once you’ve settled on a business name, you’ll need to register your business in the state in which you will do business. The specific requirements for registering your business will vary depending on your business structure, such as whether it’s a sole proprietorship, corporation, partnership, or LLC, and the state in which your business will be registered. You may also need to obtain a business license.
Get the Right Software
There’s no shortage of business accounting software to use. Some popular options include QuickBooks, Xero, FreshBooks and Zoho Books, among others. You can read more about our ratings for various business accounting software here. You should be familiar with more than one software as some of your clients may have a preference in terms of the accounting software that they’d like you to use.
Price Your Services
Deciding what to charge your clients is often a difficult process. You will want to do your research before pricing your services, and you will also want to maintain some level of flexibility to adjust your rates in the future.
You can look at freelance sites, such as Upwork, to see what others are charging for bookkeeping services, but you can also learn a lot by asking around. Talk to businesses in your area to see what they are currently paying for bookkeeping services. Talk to people in your network who are also bookkeepers and ask what they are charging. In doing so, you can get a good idea as to the range bookkeepers charge for services.
The specific amount you charge your clients for bookkeeping services will depend on your certifications, years of experience and familiarity with the client’s business.
Research Funding Options
You will likely want to establish a business banking account and credit card. This can help you keep your own business expenses organized and separate. If you plan to hire employees, such as an administrative assistant, you may also want to seek a small business loan. If you seek funding from a bank or investor, your business plan will be especially important because it is how potential lenders and investors will understand your business.
Market Your Business
Before launching your bookkeeping business, you should consider creating a marketing and sales plan so that you are set up for success. Your bookkeeping marketing and sales plan might include:
- Determining where clients will find out about you and finding ways to meet them there (e.g., Google My Business, Google Ads, etc…).
- Develop an online presence with a website that is optimized for search. Learn how to make a small business website.
- Add your bookkeeping business to relevant online business directories.
- Assess who in your network might be a potential client or customer.
- Assess who in your network might be a possible referral source for business.
- Consider whether your budget allows for paid advertising and marketing materials.
- Consider local advertising opportunities.
Bottom Line
In addition to being good with finances and accounting software, operating a successful bookkeeping business requires staying up-to-date on accounting software technology trends, marketing your business, managing your own business and maintaining positive relationships with your clients.
Frequently Asked Questions (FAQs)
Do I need to rent office space for my bookkeeping business?
No, a separate office isn’t necessary for a bookkeeping business. You may want to start your business out of your home. As your business grows and you hire employees, you can consider whether to rent office space or keep working remotely. You can also take advantage of office “hoteling” options.
Do I need to specialize in a niche area?
While it’s not required for bookkeepers to specialize in a niche, many choose to do so for marketing purposes. If you focus on a specific industry, you can gain referrals from others within the industry and join industry associations.
Can I do my own bookkeeping for my business?
A small business can likely do all its own bookkeeping using accounting software. Many of the operations are automated in the software, making it easy to get accurate debits and credits entered.
What skills does a bookkeeper need?
Unlike accounting, bookkeeping does not require any certifications. Individuals who are successful bookkeeping professionals are highly organized, can balance ledgers accurately, have an eye for detail and are excellent communicators.
