Ever looked at a bookkeeper and thought, “I could do that”?

Well, you probably could. Bookkeeping is one of those rare businesses you can start with minimal cash, run from your couch, and actually make good money doing.

Let me break down how to start a bookkeeping business without the fluff or complicated jargon. Just the stuff that actually matters.

How to Start a Bookkeeping Business Without Breaking the Bank

Step 1: Figure Out What Makes You Different

Don’t just be “another bookkeeper.” That’s boring and nobody cares.

Instead, pick a specific type of client to serve:

• Small businesses who hate numbers
• E-commerce brands drowning in transactions
• Freelancers who wait until April 14th to think about taxes
• Construction companies with complex job costing

The more specific your niche, the more you can charge. Why? Because you’re not just tracking numbers – you’re solving specific problems for specific people.

According to a study by Hinge Research Institute, specialized service providers can charge up to 33% more than generalists.

Step 2: Create a Simple Business Plan

Don’t overthink this. Your business plan needs just a few things:

• Who you’re going to help (your niche)
• What specific problems you’ll solve for them
• How much you’ll charge
• What software you’ll use
• How you’ll find clients

That’s it. Seriously.

The plan is mainly for you to get clarity, not to impress some banker. Though if you do need funding later, you’ll have the bones of something to show them.

Step 3: Make It Legal (Without Spending a Fortune)

You need to make your business official, but don’t stress about it:

• Sole Proprietorship: Super simple to set up. Just start working and report income on your taxes. The downside? You’re personally liable if something goes wrong.

• LLC: This is what most bookkeepers choose. It costs around $100-ish to set up (varies by state) and gives you personal liability protection.

• Corporation: Probably overkill when you’re starting out. More paperwork, more expense.

Register your business name, get any required local permits, and you’re good to go. Total cost? Usually between $50-500 depending on where you live.

Step 4: Get Essential Tools (Without Going Broke)

You need surprisingly little to start:

• Computer: Use what you have for now
• Accounting software: This is the one thing worth spending on. Options include QuickBooks Online, Xero, or FreshBooks.
• Website: A simple site that doesn’t look like it was made in 1997

That’s it. No fancy office. No expensive suits. No business cards nobody will keep.

The real investment is in good accounting software. Most bookkeepers use QuickBooks Online because it’s what clients know, and they offer a special free version for accounting professionals.

Step 5: Protect Yourself

Get professional liability insurance. It’s not sexy, but it protects you if you make a mistake that costs a client money.

This typically costs a few hundred bucks a year. Worth it for the peace of mind alone.

Step 6: Set Your Prices (And Don’t Lowball Yourself)

There are three main ways to price bookkeeping services:

• Hourly: Most bookkeepers charge $40-75/hour depending on location and experience
• Monthly packages: Like “$500/month for full-service bookkeeping”
• Value-based: Charging based on the value you provide, not your time

According to a survey by the American Institute of Professional Bookkeepers, the average bookkeeper charges around $50/hour. But I know many who charge $100+ when they specialize.

Whatever you do, don’t compete on price. There’s always someone willing to work for less. Compete on expertise, reliability, and solving specific problems instead.

Step 7: Build a Simple Website

Your website doesn’t need to win design awards. It just needs to:

• Clearly explain who you help and how
• Show your services and pricing
• Make it easy to contact you
• Include testimonials (once you have them)

You can build this yourself with Squarespace or Wix for about $20/month, or hire someone on Upwork for a few hundred dollars.

Step 8: Find Your First Clients

This is where most new bookkeepers get stuck. Here’s what actually works:

• Tell everyone you know what you’re doing
• Network where your target clients hang out (online groups, local business meetups)
• Partner with complementary professionals (tax accountants, business coaches)
• Use LinkedIn to directly connect with your ideal clients

Don’t waste money on fancy ads or business cards nobody will keep. Focus on building relationships instead.

Research from Constant Contact shows that word-of-mouth is still the most effective marketing for service businesses, with 85% of small businesses saying it’s their primary way of getting new clients.

Step 9: Set Up Client-Friendly Systems

The more organized your processes are, the more clients you can handle:

• Create a simple onboarding process
• Use cloud software so clients can access their books anytime
• Set up regular check-ins and reports
• Use scheduling software for meetings

Think about the client experience from start to finish. The easier you make it, the more they’ll love you and refer others.

Step 10: Keep Learning (But Don’t Go Certification Crazy)

You don’t need a dozen certifications to start, but learning specific skills can help you stand out:

• Get certified in your main accounting software
• Learn industry-specific accounting for your niche
• Stay updated on tax law changes

According to data from PayScale, bookkeepers with QuickBooks certification earn about 10% more than those without.

What Will This All Cost You?

Let’s break it down:

• Business registration: $50-500 (one time)
• Accounting software: $300-1,200/year
• Website: $200-500 to set up
• Insurance: $300-1,000/year
• Optional certifications: $200-500

Total startup cost: As low as $1,000-2,000.

Compare that to most businesses that need tens of thousands to launch, and you can see why bookkeeping is such an attractive option.

Plus, with just a few clients paying $500/month, you’ll break even almost immediately.

The Bottom Line

Starting a bookkeeping business doesn’t require fancy degrees, massive investments, or complicated business models. It requires understanding basic accounting, good organizational skills, and the ability to make clients’ lives easier.

Start small, focus on a specific niche, deliver great service, and the rest will follow.

Oh, and remember that the whole “working in your pajamas” thing? That’s actually true in this business. Just don’t mention it on your client Zoom calls.