Bookkeeping services

What it costs to start

Amounts are itemized estimates. “Not verified” means we don’t have a defensible figure; it is not $0.

Ongoing costs

What you need

• Computer
• Reliable internet
• Accounting software access
• Secure storage for client records
• Helpful: IRS PTIN, only if you prepare tax returns for pay — Not needed for bookkeeping alone. Anyone who prepares or helps prepare federal tax returns for compensation must have a PTIN.

Licensing: Bookkeeping generally needs no professional license, though a general business license may apply. Preparing or helping prepare federal tax returns for pay requires a Preparer Tax Identification Number (PTIN) from the IRS, and only licensed CPAs may call themselves CPAs. Some states have additional rules for paid tax preparers.

Skills that help: Accounting or administration, Operations and management, Customer service.

Time: Monthly close work clusters at month-end; tax season brings extra client questions.

Typical customer: Sole proprietors, small service businesses, contractors, nonprofits and shops without in-house finance staff

How it makes money: Monthly retainers based on transaction volume, plus project fees for catch-up or cleanup work

Business model: Freelance or consulting, Side hustle

Risks and downsides

• Errors in a client’s books can lead to tax penalties or bad decisions and liability claims.
• Handling client bank and tax data makes you a target for fraud and data breaches.
• Drifting into tax preparation or advice without a PTIN or proper credentials creates legal exposure.
• Catch-up projects often take far longer than quoted.
• Automated bookkeeping tools compete on price for simple clients.

Your first step

Then

1. Decide clearly whether you will stay out of tax preparation or get a PTIN.
2. Get a professional liability insurance quote.
3. Write an engagement letter that defines scope and what you do not do.
4. Set up secure methods for receiving client documents.

Sources and review

• PTIN requirements for tax return preparers (Internal Revenue Service). Supports: All paid tax return preparers must have a PTIN. Says nothing about bookkeeping-only work.
• Bookkeeping, Accounting, and Auditing Clerks (U.S. Bureau of Labor Statistics). Supports: Nature of bookkeeping work and that professional certification is usually not required. Wage data are employee pay, not business income.
• Self-employment tax (Social Security and Medicare taxes) (Internal Revenue Service). Supports: Self-employed people generally owe self-employment tax on net earnings.

Last reviewed October 18, 2026. Method: Itemized editorial estimate built from typical starter equipment and setup items. Cited sources support the requirements and context, not each dollar figure. Items we could not price defensibly are marked "Not verified" instead of $0. Local prices vary.