How to start a bookkeeping practice: credentials, software, pricing and first clients

What a bookkeeper may do, and what needs a licence

Before you design your services, be clear about the boundary. Each state's board of accountancy regulates CPAs. The Uniform Accountancy Act, a model law from the American Institute of CPAs and NASBA that each state can adopt in its own way, describes attest services (audits, reviews and compilations) as work performed by licensed CPAs. The Texas State Board of Public Accountancy, for example, calls attest the only professional accounting service reserved exclusively for CPAs there, and says non-licensees may keep offering non-attest services such as bookkeeping and tax work. Titles like "CPA" or "certified public accountant" are restricted, so check your own state board's rules on titles and wording.

Tax is separate again. The IRS requires anyone who prepares or helps prepare federal tax returns for pay to have a valid PTIN. Only CPAs, enrolled agents and attorneys have unlimited rights to represent clients before the IRS.

This guide is general information, not legal or tax advice. Rules change and depend on your state and situation, so check with a lawyer or tax professional before you act.

Credentials: helpful, not usually required

The Bureau of Labor Statistics says certification is usually not required for bookkeeping work but can help show competency. Its median pay figure for bookkeeping, accounting and auditing clerks was $50,670 a year in May 2025, and it projects employment in that occupation to decline 6% from 2025 to 2035. For an independent practice, that's a reason to offer more than data entry: clean monthly reporting, cash-flow insight and responsive service.

Options include the Certified Bookkeeper (CB) designation from the American Institute of Professional Bookkeepers (AIPB) and the certification programs that the main accounting software companies run for their partners. Some software companies also list certified advisers in a public directory.

Choose a small, standard set of tools

Running every client on the same tools makes your work faster and easier to check. Pick one main cloud accounting platform you know well, and add only what you need.

• A cloud accounting platform (the one most of your target clients already use).
• Receipt and bill capture that feeds into it.
• A payroll provider you trust, if you'll offer payroll.
• A secure client portal for documents. Avoid sending bank statements or ID by plain email.
• A password manager and two-step login on every client account.
• A practice management or task tool, so every month-end close follows the same checklist.

Use an engagement letter for every client

An engagement letter sets expectations before the first month. Have a lawyer review your template once.

• The services, accounts and entities covered, and how often (for example, a monthly close by the 15th).
• What the client must provide, and by when.
• What you don't do: tax advice, attest work or anything outside the scope.
• Who's responsible for the accuracy of the information and final decisions.
• Fees, what triggers a fee change (such as more transactions or a new bank account) and payment terms.
• Access to systems, data security, and how records are returned if the engagement ends.

Price by the month, not the hour

Most clients prefer a predictable monthly fee. Set tiers by the things that drive your time: number of bank and card accounts, number of transactions, payroll, and how many reports they need. Price catch-up and clean-up work as a separate one-off project, because it's often the hardest part.

Charge for the first month in advance and use automatic payment. Review each client's fee once a year against the time the work actually takes.

Find your first clients

Focus on one kind of business you understand, such as owner-led trades firms, medical practices or e-commerce shops. Your onboarding, checklists and reports get better with every similar client, and referrers know exactly who to send.

• CPAs and tax preparers: they need clients whose books are clean at year end. Offer to handle the monthly work they don't want.
• Former employers and colleagues who've seen your work.
• Business lawyers, bankers and business coaches who serve the same owners.
• Industry associations in your chosen niche, where a short talk on month-end basics can lead to calls.
• Your software company's adviser directory, once you're certified.

Questions

Sources

• American Institute of Professional Bookkeepers (AIPB): Certified Bookkeeper
• U.S. Bureau of Labor Statistics: Bookkeeping, accounting and auditing clerks
• IRS: PTIN requirements for tax return preparers
• IRS: Understanding tax return preparer credentials and qualifications
• American Institute of CPAs and CIMA: Uniform Accountancy Act
• Texas State Board of Public Accountancy: Board report on attest and non-licensee services (PDF)
• NASBA: State boards of accountancy

General information, not legal, tax or financial advice. Rules differ by location; check with your own adviser.