Home-Based bookkeeping and tax practice
Handle books, payroll and tax returns for local small businesses and individuals from your home office.
- $800-4k
- Side hustle
- From home
Estimates for a small start in the US, not guarantees.
Official data
55,052 US businesses with employees in this field, -1.1% in a year
NAICS 541211 “Offices of certified public accountants”. Source: U.S. Census Bureau, County Business Patterns 2023.
What it is
A one-person accounting practice working from home: monthly bookkeeping, payroll processing, and preparing individual and small business tax returns using cloud accounting software.
Your first three steps
- Decide your services and ideal clients, and check your qualifications (bookkeeping certificate, enrolled agent or CPA path) against what you want to offer
- Get a PTIN from the IRS if you will prepare tax returns, form an LLC or register as a sole proprietor, and get an EIN
- Set up cloud accounting and tax software, then offer a discounted first month to a few local small businesses
Who pays
Self-employed people, small business owners, landlords and families who want their books and taxes handled by someone they know.
How it makes money
Monthly fees for bookkeeping and payroll, plus fixed fees per tax return. Recurring monthly clients give steadier income than one-off returns.
Skills that help
- Comfortable with numbers and accounting software
- Attention to detail
- Clear communication with non-accountants
- Keeping client information confidential
Watch out for
- Rules on who can use the title CPA or offer certain services differ by state, so check your state board of accountancy
- Paid tax preparers generally need a PTIN, and there may be further IRS requirements, so check current IRS rules
- Professional liability (errors and omissions) insurance, plus general liability if you meet clients
- Protect client data with secure software, strong passwords and a written security plan
- Check HOA, lease or home occupation rules before running a business from home
Deep research report · US
Everything you need to start: home-based bookkeeping and tax practice
Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to start a home bookkeeping and tax practice?
Startup costs are typically estimated at around $800 to $4,000, depending on your accounting and tax software, computer setup, insurance and any training you choose to take. Costs vary with the services you offer.
How much can a home bookkeeping and tax practice earn?
Estimated monthly revenue is typically around $800 to $4,000, depending on your client numbers, the services you offer and your pricing. The estimate assumes at least about 8 hours a week.
What rules should I check before offering tax and bookkeeping services?
Check your state board of accountancy about who can use the CPA title or offer certain services. Check current IRS rules, including the PTIN for paid preparers, plus professional liability insurance and any HOA, lease or home occupation rules.
Other ways to run this business
Online accounting firm for a niche
Serve one type of client remotely, such as freelancers or online sellers, with bookkeeping, payroll and tax support.
- $1.5k-7k
- Part-time
- Online
Neighborhood accounting and tax office
Open a small local office offering accounting, payroll and tax services to walk-in and referred clients.
- $8k-40k
- Full-time
- Own premises
Similar business services ideas
Outsourced HR for small employers
Be the part-time HR person for small businesses: handbooks, hiring support and advice on staff problems.
- $500-4k
- Part-time
- From home
Office finder for small businesses (tenant rep)
Help small companies and startups find, tour and negotiate office leases in your city.
- $1k-4k
- Part-time
- Out and about
Leasing agent for small office building owners
Fill vacant offices for local landlords by marketing spaces, showing them and closing leases.
- $1k-4k
- Part-time
- Out and about
Historic preservation consultant
Advise owners and developers on historic buildings, from condition reports to paperwork for approvals and tax credits.
- $800-4k
- Side hustle
- From home
Independent insurance agent working from home
Help local people and small businesses compare and buy insurance, and earn commission from the insurers you place cover with.
- $800-4k
- Side hustle
- From home
Home-based medical billing for small practices
Submit claims and chase payments for a few small clinics from your home office.
- $500-4k
- Side hustle
- From home
Photo: stevepb on Pixabay