Bookkeeping Business | How much does it cost to start a bookkeeping business?

How much does it cost to start a bookkeeping business? HINT: Starting a business in 2025 costs less than a year’s worth of cold brew cold foams.

As a bookkeeper and fractional CFO who has built a service-based business from the ground up, I get a lot of questions from other bookkeepers who are just starting, with the biggest one being “how much does it cost to start a bookkeeping business?” The truth is that it’s probably less than you think – but shiny object syndrome is real, my friend.

If you’re considering launching your own bookkeeping business in 2025, here’s a real-life breakdown of the initial costs you should expect.

---

1. Forming your business.

You need your business to be legit (too legit to quit) which means you have to register with your state as either an LLC or an S-Corp. I suggest starting as an LLC and then moving to S-Corp once you and your accountant decide it’s the right time. You’ll also need an EIN to be able to open a business checking account and get a business credit card.

• LLC or S-Corp registration: Depending on your state, filing fees range from $50 to $500. You’ll have to renew this yearly.
• EIN (Employer Identification Number): Free Ninety-Nine from the IRS.
• Business license: Some cities/counties require one; expect to pay $50–$200 annually.

💡 Pro Tip: Don’t skip the LLC or legal formation. It’s essential for separating personal and business finances and protecting your personal assets (aka the stuff you own outside of your business).

---

2. Software and Other Online Tools

Software is a big part of today’s business landscape – especially for those of us creating online and virtual service-based businesses.

🧾 Bookkeeping & Accounting Software

• QuickBooks Online Accountant (QBOA): Free for bookkeepers, but your clients pay for their subscriptions ($30–$200/month each depending on their plan). You may choose to cover this if you’d like or offer your clients a discount. There are also affiliate programs available.
• Xero Partner Program: Also free to join; similar setup.

📧 Email & Office Suite

• Google Workspace (formerly G Suite): $6–$12/month. I pay for the Business Starter plan at $6/user and LOVE it. I do pay for additional storage as well.
• Microsoft 365 (if preferred): Around $7–$12/month. I don’t think this is fully necessary, especially if you get Google Workspace – but I get that some prefer it.

🧠 Project Management & Client Onboarding

• ClickUp or Asana: Free for basic use; paid plans start at $7–$12/month. To be completely honest, I use ClickUp and have my assistant linked and I’m still on the free plan.
• HoneyBook (for CRM/workflows/contracts): Around $20–$40/month depending on plan. I LOVE Honeybook. It’s easy to use, you can bring in your own branding and they sync really nicely with Quickbooks Online. Dubsado doesn’t play well with Quickbooks – do not recommend. It takes the place of a scheduling software (or tbh Google Workspace is great for this too). They also have a really great referral program.

🔐 Password Manager

• 1Password or LastPass: Roughly $3–$5/month though you can get by on the free plan for a while.

🛠️ Other Useful Tools

• Canva Pro (for social media and proposals): $13/month.
• Zoom: Free plan works for most, but Pro is $15/month if needed. I personally use Google Meet for free.
• Slack (for team collaboration, if applicable): Free to start, but can get expensive really quickly. Plan for about $50-$60 per month.

---

3. Insurance & Legal

• Professional liability (E&O) insurance: Expect to pay $25–$50/month, depending on coverage and state. It can be cheaper to pay for the whole year at once.
• Bookkeeper’s bond (required in some states): Around $100–$150/year.
• Legal Templates or Retainers: You can get templates online for contracts, website privacy policies and more online. I really like The Boutique Lawyer. Expect to pay $100-$200 per contract. You should absolutely start with at least a service contract.

---

4. Marketing & Website

• Domain + Website Hosting: Around $100/year. I use Squarespace to host my domain. It’s cheap and easy to use.
• Website Builder: I love Showit for my website. It’s the easiest I’ve found and allows the most creative freedom. Need help with your website? I got you.
• Logo + Branding: DIY with Canva (not my recommendation – but can you started) or Fiverr designer for $50–$200. But honestly, if I had to start all over right now, I’d invest in getting my branding done – it helps with everything down the road. Trust me, I’ve rebranded more times than I can count.

🧠 You don’t need a website immediately, but if you find a domain name that matches your business, snatch it up. Don’t sleep on your website too long. Leads will check your website for credentials before hiring you.

---

5. Continuing Education & Certifications

• QuickBooks ProAdvisor Certification: Free.

---

6. Miscellaneous

• Co-working space or home office setup: Variable, but expect at least $200–$500 for a comfortable home office if you don’t have one. Get the decor that makes you feel good to be in your space. I promise it’s a game changer.
• Computer/laptop: If you don’t already have one, a good-quality business laptop will run $800–$1,200.
• Printer/scanner (optional these days): Around $150 if needed.

---

🎯 The Bottom Line: Startup Cost Summary

Expense Category	Estimated Cost (Year 1)
Business Formation + Legal	$100–$700
Software Tools & Subscriptions	$137–$1,200 (please don’t spend that much lol)
Insurance & Bonding	$300–$600
Website + Branding	$200–$5,000
Education & Certification	$0–$2,500 (varies)
Office Setup	$300–$2,500
Total Estimated Cost	$1,037–$12,500

---

Final Thoughts

Starting a bookkeeping business in 2025 doesn’t have to break the bank, but it does require some monetary investment. Keep your overhead low, automate where you can, and build processes early. There are so many amazing resources that are free – you don’t need a lot in the beginning.

As a fractional CFO, I’ve helped many solopreneurs grow from zero to multiple-six-figure businesses with just a from a home office with a laptop and two kids in tow.

Start lean, stay consistent, and don’t be afraid to charge what your work is worth (and then add tax).

And now you know: How much does it really cost to start a bookkeeping business. Got more questions? Holla at me in the comments.

Want to have an online presence for under $50? Check out our web templates created specifically for bookkeepers and accountants.