Preview: figures awaiting verification
Some numbers on this page haven't been checked against their sources yet.
Bookkeeping Services Business
A desk-based service that keeps small businesses' books each month for a recurring fee, with almost no equipment, best suited to people with finance or accounting experience.
Figures last verified October 30, 2026
$90 – $1,589*Pending verificationSourcesApple Store — Buy 13-inch MacBook Air(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Intuit QuickBooks — QuickBooks Online Accountant / Intuit Accountant Suite page(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Xero — Partner program (US)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California Secretary of State — Business entities fee schedule (Rev. 06/2018)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Computed from 3 startup budget line items: lean plan low to professional plan high. Some lines are not sourced yet and are excluded.
Startup cost
Coming soon
Time to first revenue
Moderate
Difficulty
Low
Physical demand
Yes
Can run solo
Steady year-round; busier around tax deadlines
Seasonality
* Startup cost excludes budget lines we haven't sourced yet.
Risk Meter
Eight factors from this guide's own data, each scored 1 (lowest risk) to 5 (highest). Every score shows why.
Overall risk
Low
1.7 out of 5
Average of 6 of 8 factors, weighted equally. 1 is the lowest risk and 5 the highest. It measures risk, not how much you'll earn, and it isn't a prediction. How we score risk.
Money at risk
Not scoredAt least $1,589
3 startup lines aren't sourced yet, so the real total is higher. We'll score this once the budget is complete.
Time to earn it back
Not scoredNo data
This guide has no sourced revenue forecast.
Franchise closure rate
2 / 53.2% a yearPending verificationSourcesSupporting Strategies 2024 FDD (Minnesota CARDS), issued May 15, 2024(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Padgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Closures = terminations + non-renewals + outlets that ceased operations, divided by franchised outlets at the start of the year.
Average of 2 brands: Supporting Strategies 4.1% (2023); Padgett Business Services 2.4% (2025). Our calculation from each FDD's Item 20.
Loan default rate
3 / 57.0% vs 7.2% for all industriesPending verificationSourceSBA 7(a) FOIA loan-level data, files as of September 30, 2026 (our count by NAICS code)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Charged off = the SBA wrote off the unpaid balance after the borrower stopped paying. An industry code can include businesses unlike this one.
96 of 1,375 SBA 7(a) loans to Other Accounting Services (NAICS 541219), approved FY2010–2019, were charged off. Our count from the SBA's loan-level data; 133 loans were still open, so the final rate may be slightly higher.
Demand trend
2 / 5Growing fasterPending verificationSourcesU.S. Census Bureau — County Business Patterns 2019, U.S. file (cbp19us)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026U.S. Census Bureau — County Business Patterns 2023, U.S. file (cbp23us)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026
Other accounting services, which includes bookkeeping (NAICS 541219), employer establishments +12.9% (42,245 to 47,699) vs +5.1% for all industries, 2019–2023.
Licensing and rules
1 / 5Light
No state license for bookkeeping; only a city or county business license. CTEC registration and an IRS PTIN are needed only if you prepare tax returns for pay (see Licensing).
Customer concentration
1 / 5Many customers
Many small-business clients on monthly fees; losing one hurts a little but not a lot.
Physical demand
1 / 5Low
From the guide's at-a-glance rating; see the risks section for details.
Franchise vs. Independent
Same type of business. Two very different paths.
| Franchise (3 brands) | Independent | |
|---|---|---|
| Franchise fee | $35,000 – $60,000Pending verificationSourcesSupporting Strategies 2024 FDD (Minnesota CARDS), issued May 15, 2024(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Padgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Ledgers (unit) 2026 FDD (Minnesota CARDS), issued April 29, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Range across 3 franchise brands. | $0 |
| Initial investment | $48,200 – $117,295Pending verificationSourcesSupporting Strategies 2024 FDD (Minnesota CARDS), issued May 15, 2024(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Padgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Ledgers (unit) 2026 FDD (Minnesota CARDS), issued April 29, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026FDD Item 7 estimated initial investment (includes the franchise fee), across 3 brands. | $90 – $1,589*Pending verificationSourcesApple Store — Buy 13-inch MacBook Air(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Intuit QuickBooks — QuickBooks Online Accountant / Intuit Accountant Suite page(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Xero — Partner program (US)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California Secretary of State — Business entities fee schedule (Rev. 06/2018)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Computed from 3 startup budget line items: lean plan low to professional plan high. Some lines are not sourced yet and are excluded. |
| Ongoing royalties | 9% – 10% of revenuePending verificationSourcesSupporting Strategies 2024 FDD (Minnesota CARDS), issued May 15, 2024(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Padgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Ledgers (unit) 2026 FDD (Minnesota CARDS), issued April 29, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Percent of gross revenue, across 3 brands. | None |
| Operating costs (5 years) | $10,760Pending verificationSourcesInsureon — Bookkeeper insurance cost (updated June 24, 2025)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026California Franchise Tax Board — 2025 Instructions for Form FTB 3522 (LLC tax voucher)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Five years of the operating costs we have sourced so far (insurance, software, fees), charged to both paths. | $10,760 |
| Brand, training, and support | Included | You build your own |
Franchise fee
- Franchise (3 brands)
- $35,000 – $60,000Pending verificationSourcesSupporting Strategies 2024 FDD (Minnesota CARDS), issued May 15, 2024(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Padgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Ledgers (unit) 2026 FDD (Minnesota CARDS), issued April 29, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Range across 3 franchise brands.
- Independent
- $0
Initial investment
- Franchise (3 brands)
- $48,200 – $117,295Pending verificationSourcesSupporting Strategies 2024 FDD (Minnesota CARDS), issued May 15, 2024(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Padgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Ledgers (unit) 2026 FDD (Minnesota CARDS), issued April 29, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026FDD Item 7 estimated initial investment (includes the franchise fee), across 3 brands.
- Independent
- $90 – $1,589*Pending verificationSourcesApple Store — Buy 13-inch MacBook Air(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Intuit QuickBooks — QuickBooks Online Accountant / Intuit Accountant Suite page(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Xero — Partner program (US)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California Secretary of State — Business entities fee schedule (Rev. 06/2018)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Computed from 3 startup budget line items: lean plan low to professional plan high. Some lines are not sourced yet and are excluded.
Ongoing royalties
- Franchise (3 brands)
- 9% – 10% of revenuePending verificationSourcesSupporting Strategies 2024 FDD (Minnesota CARDS), issued May 15, 2024(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Padgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Ledgers (unit) 2026 FDD (Minnesota CARDS), issued April 29, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Percent of gross revenue, across 3 brands.
- Independent
- None
Operating costs (5 years)
- Franchise (3 brands)
- $10,760Pending verificationSourcesInsureon — Bookkeeper insurance cost (updated June 24, 2025)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026California Franchise Tax Board — 2025 Instructions for Form FTB 3522 (LLC tax voucher)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Five years of the operating costs we have sourced so far (insurance, software, fees), charged to both paths.
- Independent
- $10,760
Brand, training, and support
- Franchise (3 brands)
- Included
- Independent
- You build your own
We don't have a sourced revenue forecast for this business, so royalties and 5-year totals depend on your own numbers. Enter your expected revenue on the comparison page. Franchise investment figures come from each brand's disclosure (FDD Item 7) and already include the franchise fee. * Excludes independent startup lines we haven't sourced yet. Adjust the assumptions.
What franchisees report taking in
From each brand's own disclosure (FDD Item 19), copied exactly. These are gross sales before royalties and costs, not profit, and not a promise of what you will earn.
Supporting Strategies
The 2024 Supporting Strategies FDD makes no financial performance representation.
Padgett Business Services
Item 19 reports fiscal 2025 revenue and adjusted profit for 130 franchisees grouped by revenue size, plus average client fees; the figures below are the average revenue in each size group.
- Average 2025 revenue, franchisees with $500,000 or more (47 of 130 franchisees; gross revenue, not profit)$1,143,869.47 a yearPending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Average adjusted P&L for this group. FDD Item 19, from complete financial reports submitted by 130 of 146 U.S. franchisees for fiscal 2025 (16 were left out because of tax-season deadlines or extensions). Revenue includes bookkeeping, tax preparation and payroll; it is before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
- Average 2025 revenue, franchisees with $300,000–$499,999 (23 of 130 franchisees; gross revenue, not profit)$402,904.89 a yearPending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, from complete financial reports submitted by 130 of 146 U.S. franchisees for fiscal 2025 (16 were left out because of tax-season deadlines or extensions). Revenue includes bookkeeping, tax preparation and payroll; it is before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
- Average 2025 revenue, franchisees with $100,000–$299,999 (44 of 130 franchisees; gross revenue, not profit)$194,190.56 a yearPending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, from complete financial reports submitted by 130 of 146 U.S. franchisees for fiscal 2025 (16 were left out because of tax-season deadlines or extensions). Revenue includes bookkeeping, tax preparation and payroll; it is before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
- Average 2025 revenue, franchisees under $100,000 (16 of 130 franchisees; gross revenue, not profit)$66,136.38 a yearPending verificationSourcePadgett Business Services 2026 FDD (Minnesota CARDS), issued March 23, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19, from complete financial reports submitted by 130 of 146 U.S. franchisees for fiscal 2025 (16 were left out because of tax-season deadlines or extensions). Revenue includes bookkeeping, tax preparation and payroll; it is before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
Ledgers
Item 19 reports 2025 gross revenue for just the 2 Ledgers outlets open three or more years; all 16 outlets that opened in 2025 were left out.
- Average 2025 gross revenue (2 franchised outlets open 3+ years; gross sales, not profit)$294,192 a yearPending verificationSourceLedgers (unit) 2026 FDD (Minnesota CARDS), issued April 29, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026The FDD also gives this as the median, since there are only two outlets. FDD Item 19. Based on only 2 outlets open 3+ years (one storefront, one virtual); 16 outlets that opened in 2025 were excluded. Gross revenue before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
- Highest 2025 gross revenue of those 2 outlets (gross sales, not profit)$364,474 a yearPending verificationSourceLedgers (unit) 2026 FDD (Minnesota CARDS), issued April 29, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19. Based on only 2 outlets open 3+ years (one storefront, one virtual); 16 outlets that opened in 2025 were excluded. Gross revenue before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
- Lowest 2025 gross revenue of those 2 outlets (gross sales, not profit)$223,911 a yearPending verificationSourceLedgers (unit) 2026 FDD (Minnesota CARDS), issued April 29, 2026(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026FDD Item 19. Based on only 2 outlets open 3+ years (one storefront, one virtual); 16 outlets that opened in 2025 were excluded. Gross revenue before royalties and all expenses — not profit. Some outlets have earned this amount; your results may differ.
What a franchise does give you
Franchises cost more, but the fees buy real things. Weigh them honestly.
- Brand focused only on outsourced bookkeeping and controller services
- Initial training for you and your staff
- Franchisor-supplied IT setup, secure document storage and practice-management software
- Runs from home; no office lease required
- A network of other owners to learn from
- Long-established brand serving small-business tax, payroll and bookkeeping
- Initial classroom training and ongoing tax seminars
- Bundled tax and accounting software through the franchisor
- Franchisor can prepare tax returns on your behalf until you qualify
- Combined bookkeeping, payroll, tax preparation and advisory brand
- Initial training
- Optional central processing: the franchisor can prepare some returns and books for your clients for a fee
- Franchisor financing available for the initial fee
Going independent means
- You keep 100% of what you earn after costs — no royalties.
- You build your own brand, systems, and customer base.
- You need more self-reliance, especially in the first year.
Startup Budget
One-time costs to launch, from cited sources. Totals are added up from the lines below.
| Item | Low | Mid | High |
|---|---|---|---|
| Accountant software for your practice (Intuit Accountant Suite Core or Xero partner program)Pending verificationSourcesIntuit QuickBooks — QuickBooks Online Accountant / Intuit Accountant Suite page(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Xero — Partner program (US)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Intuit says the Core version of Intuit Accountant Suite has no monthly recurring fee (QuickBooks Online Accountant is being discontinued December 31, 2026). Xero says its partner program is free with no ongoing costs. Paid add-ons, such as Intuit's Accelerate plan, cost extra. | $0 | $0 | $0 |
| California LLC filing (Articles of Organization plus first Statement of Information)Pending verificationSourceCalifornia Secretary of State — Business entities fee schedule (Rev. 06/2018)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026$70 for Form LLC-1 plus $20 for Form LLC-12, from the Secretary of State fee schedule dated June 2018. Confirm current fees at bizfile Online. | $90 | $90 | $90 |
| City or county business license | Data coming soon | ||
| Website and email | Data coming soon | ||
| Marketing launch | Data coming soon | ||
| Total (sourced lines only) | $90 | $90 | $90 |
Share of mid estimate
- Accountant software for your practice (Intuit Accountant Suite Core or Xero partner program)0%
- California LLC filing (Articles of Organization plus first Statement of Information)100%
Budget spreadsheet
Every line with its sources, included in the complete kit.
The total leaves out 3 lines we haven't sourced yet. We don't guess.
24-Month Forecast
An example to plan with. Every assumption is yours to change.
Data coming soon
The forecast isn't published yet. We only show numbers we can source.
Pricing
What customers typically pay, from large-sample cost data.
What customers pay
- Monthly bookkeeping, US range$200 – $3,500 a monthPending verificationSourceBark — Cost of bookkeeping (US, last updated August 21, 2025)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Last verified October 30, 2026No published sample size. Bark's page gives two different averages ($300 a month in its header, $500 in its text), so we show only its range.
- Freelance bookkeeper, per hour$35 – $55Pending verificationSourceBark — Cost of bookkeeping (US, last updated August 21, 2025)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Last verified October 30, 2026Per hour. Bark says these are median rates; no published sample size.
- US bookkeeping firm, per hour$100 – $149Pending verificationSourceClutch — Bookkeeping pricing (updated September 21, 2026)(opens in a new tab)Tier 2 · Industry report · Accessed October 30, 2026Last verified October 30, 2026Per hour, for firms listed on Clutch (mostly larger firms serving businesses). No published sample size.
- Typical monthly bookkeeping fee$300 a monthPending verificationSourceNerdWallet — Bookkeeping prices for small business (updated March 13, 2026)(opens in a new tab)Tier 3 · Guide or blog · Accessed October 30, 2026Last verified October 30, 2026Single tier-3 guide with no stated sample size or method; shown for context.
- Online bookkeeping service (Bench), for comparison$199 – $399 a monthPending verificationSourceBench — Pricing(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Bench's Bookkeeping Light and Bookkeeping plans, monthly billing. This is the low-cost online competition you'll be priced against.
- Online bookkeeping service (Pilot Essentials), for comparison$99 a monthPending verificationSourcePilot — Pricing(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Pilot's listed starting plan, for businesses with up to $100,000 in monthly expenses.
- Client's QuickBooks Online subscription (list price)$38 – $340 a monthPending verificationSourceQuickBooks Online — US pricing(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Simple Start to Advanced, regular list prices (promotional discounts excluded). Usually paid by the client, not by you.
- Client's Xero subscription (list price)$27 – $97 a monthPending verificationSourceXero — US pricing plans(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Early to Established plans, regular US prices after the introductory period. Usually paid by the client, not by you.
What similar businesses take in
Context only, not a promise of what you will earn. Government figures cover every business in the industry; guide figures are rougher. Tap the source icon to see which is which. These are revenue, before costs.
- Average yearly receipts per bookkeeping and other accounting services firm with fewer than 5 employees (NAICS 541219, U.S. employer firms, 2022)$191,355 a yearPending verificationSourceU.S. Census Bureau — Statistics of U.S. Businesses 2022, U.S. and states, 6-digit NAICS (us_state_6digitnaics_2022)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Calculated by us from the Census table: $6,841,719,000 in receipts across 35,754 firms, rounded to the nearest dollar. Receipts are gross revenue, not profit. NAICS 541219 (Other Accounting Services) covers bookkeeping and billing services; it leaves out CPA offices, tax preparers and payroll services, which have their own codes. Shown for context only — not a promise or prediction of your results.
- Average yearly receipts per bookkeeping and other accounting services firm with fewer than 5 employees in California (NAICS 541219, employer firms, 2022)$227,630 a yearPending verificationSourceU.S. Census Bureau — Statistics of U.S. Businesses 2022, U.S. and states, 6-digit NAICS (us_state_6digitnaics_2022)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Calculated by us from the Census table: $1,088,983,000 in receipts across 4,784 California firms, rounded to the nearest dollar. Receipts are gross revenue, not profit. NAICS 541219 (Other Accounting Services) covers bookkeeping and billing services; it leaves out CPA offices, tax preparers and payroll services, which have their own codes. Shown for context only — not a promise or prediction of your results.
- Average yearly receipts per nonemployer (solo, no payroll) bookkeeping and other accounting services business (NAICS 541219, U.S., 2024)$31,326 a yearPending verificationSourceU.S. Census Bureau — Nonemployer Statistics 2024, U.S. file (nonemp24us)(opens in a new tab)Tier 1 · Primary source · Accessed October 31, 2026Last verified October 31, 2026Calculated by us from the Census file: $8,099,487,000 in receipts across 258,557 nonemployer businesses, rounded to the nearest dollar. Many are part-time. Receipts are gross revenue, not profit. NAICS 541219 (Other Accounting Services) covers bookkeeping and billing services; it leaves out CPA offices, tax preparers and payroll services, which have their own codes. Shown for context only — not a promise or prediction of your results.
Key Risks and How to Manage Them
Liability for errors
A missed transaction, late payroll tax deposit or wrong sales tax filing can cost a client penalties, and they may hold you responsible.
How to manage it: Carry errors and omissions insurance, use a written engagement letter that spells out what you do and don't do, and review every month's work with a checklist.
Software and AI price pressure
Online services advertise bookkeeping from about $99 to $399 a month, and accounting software keeps automating categorizing and reconciling.
How to manage it: Sell what software can't: a local person who answers the phone, cleans up messy books, and explains the numbers. Use automation yourself so each client takes fewer hours.
What you legally cannot do
Only licensed CPAs may call themselves CPAs, and only CPAs with attest authority may sign audit or review reports. In California, preparing tax returns for pay requires CTEC registration and an IRS PTIN unless you are a CPA, enrolled agent or attorney.
How to manage it: Describe yourself as a bookkeeper, refer audit and review work to a CPA, and register with CTEC before you prepare any return for a fee.
Slow client growth
Business owners rarely switch bookkeepers quickly, so building a full roster of monthly clients can take a long time.
How to manage it: Network with CPAs, tax preparers and local business groups who can refer clients, and offer one-time cleanup projects that can turn into monthly work.
Client data security
You will hold bank logins, payroll records and tax IDs for every client. A breach or fraud on your watch can be costly.
How to manage it: Use multi-factor authentication, a password manager and client-granted accountant access rather than shared passwords; consider cyber insurance.
Deadline crunches
Month-end, quarter-end and tax season stack up at the same time for all clients, which means long desk hours at those times.
How to manage it: Stagger client close dates, set document deadlines in your engagement letter, and cap the number of clients you take on per hour you can work.
Licensing by State
Requirements vary by state and local jurisdiction.
More states are coming.
A general guide only. Rules change and vary by city and county — confirm with your local government before you start.
City or county business license
Pending verificationMost California cities require a business license or tax certificate, even for a home-based business. Check with the city where you work from.
Don't call yourself a CPA or accountant firm unless licensed
Pending verificationPending verificationSourceCalifornia Board of Accountancy — Report unlicensed activity(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Bookkeeping itself does not need a state license, but only licensed CPAs may advertise or offer services as a certified public accountant or "CPA". The California Board of Accountancy investigates people and entities who misrepresent themselves as licensed.
Verify with the California Board of Accountancy(opens in a new tab)Audits and reviews are CPA-only work
Pending verificationPending verificationSourceCalifornia Board of Accountancy — Attest authority(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Audits, reviews of financial statements, prospective financial information and agreed-upon procedures reports are attest engagements. Only a CPA with attest authority may sign those reports. A bookkeeper can prepare the books, but not these reports.
Verify with the California Board of Accountancy — Attest authority(opens in a new tab)CTEC registration to prepare tax returns for pay
Pending verificationPending verificationSourcesCalifornia Tax Education Council (CTEC) — New preparer application(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026California Tax Education Council (CTEC) — FAQs(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Any non-exempt person who prepares tax returns for pay in California must register with CTEC. That means a 60-hour qualifying course, a $5,000 tax preparer bond, an IRS PTIN, fees, and 20 hours of continuing education each year. California CPAs, enrolled agents and State Bar attorneys are generally exempt. CTEC says illegal preparers can face penalties of up to $5,000 per violation.
Verify with the California Tax Education Council (CTEC)(opens in a new tab)IRS PTIN for paid preparers
Pending verificationPending verificationSourceIRS — PTIN requirements for tax return preparers(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Anyone who prepares or helps prepare federal tax returns for pay must have a current Preparer Tax Identification Number from the IRS, renewed each year.
Verify with the IRS — PTIN requirements(opens in a new tab)LLC annual tax (if you form an LLC)
Pending verificationPending verificationSourceCalifornia Franchise Tax Board — 2025 Instructions for Form FTB 3522 (LLC tax voucher)(opens in a new tab)Tier 1 · Primary source · Accessed October 30, 2026Last verified October 30, 2026Every LLC registered in California owes an $800 annual tax to the Franchise Tax Board, paid with Form FTB 3522, until the LLC is formally cancelled.
Verify with the California Franchise Tax Board(opens in a new tab)
The Playbook
A step-by-step guide from setup to growth.
Phase 1
Setup
- Decide which services you will and won't offer
- Choose your business structure and get a city license
- Set up accountant access in QuickBooks and Xero
- Get errors and omissions insurance
- Write your engagement letter and monthly price list
Phase 2
Launch
Included in the complete kit
Phase 3
Marketing
Included in the complete kit
Phase 4
Referral partners
Included in the complete kit
Phase 5
Operations
Included in the complete kit
Phase 6
Hiring
Included in the complete kit
Phase 7
Growth
Included in the complete kit
Suppliers and Tools
Vendors independent operators use.
No supplier pays to be listed. If we ever earn a referral fee from a link, it will say “Affiliate link” right next to it.
Accounting software
Practice tools for bookkeepers and the software most clients use.
Certification
Optional bookkeeping credentials.
Insurance
Errors and omissions, general liability and cyber coverage for bookkeepers.
The Kit Is Coming
Everything on this page is free. The downloadable kit (playbook, spreadsheets, templates) is in the works.
Frequently Asked Questions
Is this a franchise?
No. The Open Franchise is not a franchise and does not sell franchises. You start and own your business yourself, with no franchise fee, royalties, or territory rules. We sell guides and kits; that's all.
Do I need to be a CPA to do bookkeeping?
No. Bookkeeping does not require a state license. You may not call yourself a CPA or sign audit or review reports unless you are licensed, and in California you must register with CTEC and get an IRS PTIN before preparing tax returns for pay.
Will software and AI replace bookkeepers?
Software already does much of the routine categorizing, and online services compete on price. Independent bookkeepers tend to compete on personal service, cleanup work and explaining the numbers. Plan your prices with that competition in mind.
Are these numbers guaranteed?
No. Every cost and price is an estimate from a cited source, shown as a range where possible, with the date we last checked it. Your costs and results will depend on your market and choices.
Figures last verified October 30, 2026. Every number links to its source. See all sources for this page.