If you are good with numbers and organized, you can start a bookkeeping business without going back to school. Here is what the rules actually say, which credentials help, and how to win clients before you have any.
No license is required in most places
In most of the US, there is no license required to work as a bookkeeper. You still need to register your business like any other, and some cities require a general business license. Bookkeeping is different from public accounting, which is regulated, so avoid calling yourself an “accountant” or a “CPA” unless you are one.
Certifications that help
- Professional bookkeeping certifications from national bookkeeping associations show you know the fundamentals and follow a code of ethics.
- Accounting software certifications from the major cloud accounting platforms are free or low cost, quick to earn, and often put you in a directory where small businesses look for help.
- Payroll certifications are useful if you plan to handle payroll.
Software certifications are often the best first step. They are directly useful, clients recognize them, and the directory listings can bring in leads.
Tax work has its own rules
Preparing tax returns for pay requires an IRS Preparer Tax Identification Number (PTIN), and some states have extra requirements. Representing clients in IRS audits is limited to CPAs, enrolled agents and attorneys. Many bookkeepers keep the books all year and partner with a CPA or enrolled agent for taxes, which keeps things simple and creates a steady referral source.
How to build trust without a credential
- Start with a niche you know, such as contractors, salons or restaurants
- Offer a free books review so clients see your work before they pay
- Use a clear engagement letter and a monthly checklist
- Get secure document upload instead of emailing bank statements
- Ask early clients for reviews and referrals
Insurance
Professional liability insurance (also called errors and omissions) covers you if a client claims a mistake cost them money. It is often affordable for a solo bookkeeper and worth having from your first client.
Get the intake form and engagement letter with the starter kit
Our bookkeeping starter kit includes monthly package pricing, a client intake form, secure document upload, an engagement letter template and a monthly close checklist. See our guide on how much to charge for bookkeeping, then vote for the bookkeeping kit. Voters get 20% off at launch.
This is general information, not legal or tax advice. Rules vary by state, so check your state’s requirements.
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