How to start a bookkeeping business, and other side work for accountants
Bookkeeping is one of the easiest businesses for an accountant to start, because small businesses always need it and most owners would rather pay someone than do it themselves. The same skills also sell as tax prep, payroll and cleanup work.
Rules on what you can call yourself and offer depend on your credentials and your state, so check your state board of accountancy before using titles like CPA or offering attest work. This is general information, not legal or financial advice.
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$50,670 a year
Median bookkeeping and accounting clerk pay, May 2025
BLS Occupational Outlook HandbookSide businesses that use an accounting background
Bookkeeping for small businesses
Monthly categorizing, reconciling and reporting for owners who are behind. Recurring monthly clients make this steady income once you have a few.
- What it takes
- Accounting software access, an engagement letter, and business insurance. Very little else to start.
- First step
- Write a one-page monthly bookkeeping offer with a fixed price and send it to three business owners you already know.
Tax season preparation
Prepare individual or small business returns during filing season. Fits well around a full-time job if you plan your evenings from February to April.
- What it takes
- The IRS requires anyone who prepares or helps prepare federal returns for pay to have a valid PTIN, renewed each year. Professional software and insurance cost extra.
- First step
- Apply for your PTIN on irs.gov and decide which return types you will and will not take.
Payroll services
Run payroll, filings and year-end forms for small employers. Mistakes carry penalties, so it suits careful people who like deadlines.
- What it takes
- A payroll platform and clear agreements on who is responsible for deposits and filings.
- First step
- Pick one payroll platform, learn its setup for a small employer, and offer it to your bookkeeping clients first.
Fractional or part-time controller
Run the close, reporting and finance process for a growing company that cannot justify a full-time controller. Pays best of anything here, and needs the most experience.
- What it takes
- Years of close and reporting experience. Many clients expect a CPA for this role.
- First step
- List the three companies in your network that just raised money or hired fast. Those are the ones who need this.
QuickBooks or Xero setup and cleanup
Fix a messy file, clean up months of miscategorized transactions, or set up a new business correctly. One-time projects that often turn into monthly clients.
- What it takes
- Strong working knowledge of the software. Both vendors run certification programs for accountants.
- First step
- Offer a fixed-price cleanup to one business owner who admits they are behind, and time how long it takes you.
Niche bookkeeping
Specialize in one kind of client, such as contractors (job costing), nonprofits (fund accounting) or restaurants. A niche makes referrals easier and lets you charge for knowing the details.
- What it takes
- Time to learn the niche's reporting quirks. Nonprofits, for example, have their own filings and grant tracking.
- First step
- Pick the industry you already know best from your day job and find where its owners meet, online or in person.
Sample conversation
How a conversation with Carmen starts
Carmen asks before she suggests. An illustrative example, not a real person.
I want income outside my staff accountant job. Is bookkeeping worth it?
It can be, if you pick clients who fit around your job. Do you know any small business owners who are behind on their books?
My brother-in-law runs a landscaping company. His books are a mess.
That is your first cleanup project, and a niche to try: contractors. Let's price the cleanup and a monthly package, and rehearse how you would pitch it to him.
Work it out with Carmen, free
30 free minutes with Carmen and the team. No card needed.
Questions & answers
- Do I need a license to start a bookkeeping business?
- In most places bookkeeping itself does not need a CPA license, but using the CPA title or offering attest services does. Check your state board of accountancy, and your local rules for a business license.
- Do I need a PTIN to prepare tax returns?
- Yes. The IRS says anyone who prepares or assists in preparing federal tax returns for compensation must have a valid PTIN, and it has to be renewed each year.
- Can I start a bookkeeping business while working as an accountant?
- Usually yes, but read your employment agreement for outside-work, conflict-of-interest or client non-solicitation clauses, and never take clients from your employer.
- How much can I make from a side bookkeeping business?
- It depends on your clients and prices, so there is no honest single number. Start with one or two monthly clients at a fixed fee and track what you earn per hour.