How to Start an Accountant Business
A step-by-step path for opening your own accounting practice, from credentials and registration to the first invoice a client pays.
Starting an accounting practice means sorting out credentials, a business structure, tax IDs and insurance before you take on clients, and then getting paid for the first engagement. This page covers that order of work. Billing questions such as retainers and out-of-scope requests are on the accountant invoicing guide linked below.
On credentials, the BLS profile of accountants and auditors (In the US, last modified October 29, 2026) says "CPAs are licensed by their state’s Board of Accountancy." It also says "Any accountant who files a report with the Securities and Exchange Commission (SEC) is required to be a licensed Certified Public Accountant (CPA)." Check your state board's rules for the work you plan to offer.
A first accounting invoice with sample figures: one month of bookkeeping at 1 × $400.00 and a tax return preparation fee at 1 × $650.00 come to $400.00 + $650.00 = $1,050.00. Use your own figures; these are only an illustration.
Step-by-step startup guide
Follow these steps to launch your accountant business on solid footing.
- 1
Decide which services you'll offer
Choose the work you'll take on first, such as bookkeeping, payroll or tax preparation, and the kind of client you want to serve. That choice decides which credentials and insurance you need.
- 2
Check the credentials your services need
The BLS accountants and auditors entry (In the US, last modified October 29, 2026) says "Becoming a CPA requires passing a national exam and meeting other state requirements." Ask your state's Board of Accountancy what applies to your services.
- 3
Pick a structure and register
The SBA's launch guide (In the US, SBA, checked October 31, 2026) says "Most businesses will also need to get a tax ID number and file for the appropriate licenses and permits." Ask a lawyer or an accountant which structure suits you, and check your state's registration rules.
- 4
Get an EIN
The SBA (In the US, SBA, checked October 31, 2026) says "Your Employer Identification Number (EIN) is your business’s federal tax ID number." The IRS's EIN page (In the US, IRS, last reviewed or updated October 16, 2026) says "You never have to pay a fee for an EIN."
- 5
Arrange insurance
The SBA (In the US, SBA, checked October 31, 2026) says "You also may be legally required to purchase certain types of business insurance." Your state sets its own requirements; a licensed insurance agent can explain the cover options for accounting work.
- 6
Set up billing before the first engagement
Write your engagement letter, decide how you'll price each service, and get your invoice template ready, so the first job can be billed as soon as it's done.
Tips for starting your accountant business
- Keep your own books from day one, separate from client work.
- Plan for your own taxes. The IRS self-employment tax page (In the US, IRS, last reviewed or updated October 30, 2026) says "The self-employment tax rate is 15.3%."
- Write down what each fee covers before you quote it, so out-of-scope requests are easy to spot.
- Check your state board's rules before you advertise any credential.
How Billed helps you get started
Features to look at as you set up your business.
Recurring Invoices
Billed's features page says: "Save time by sending invoices on a regular schedule so you don’t have to create invoices again and again."
Client Profiles
Billed's features page says: "Create and save client profiles to bill them quickly."
Expense Report
Billed's features page says: "Create expense report easily to give your accountant all the information required for tax filing."
Due Dates
Billed's features page says: "Set due dates for payment on your invoices so your clients know when they have to pay you."
Frequently asked questions
More Startup Guides
Invoice Your First Client
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Step | What to check | Source |
|---|---|---|
| Credentials | Your state's Board of Accountancy | BLS (In the US, last modified October 29, 2026) |
| Tax ID | An EIN, at no fee | SBA and IRS (In the US, IRS, last reviewed or updated October 16, 2026) |
| Licenses and permits | State and local rules | SBA (In the US, SBA, checked October 31, 2026) |
| First invoice | Service, period, fee, due date | Accountant invoicing guide |
When this isn't for you
If you're joining an existing firm rather than opening your own practice, this start-up checklist won't apply; your firm's onboarding will.