Yes, you can absolutely start a bookkeeping business without being a Certified Public Accountant (CPA). Bookkeeping focuses on recording daily financial transactions, which does not require the same legal licensure as tax preparation or auditing, allowing you to start with certifications in software like QuickBooks or by obtaining a certified bookkeeper designation.
The bookkeeping field does not mandate any certifications or licenses, but there are some credentials that employers prefer to see.
While all CPAs are accountants, not all accountants are CPAs. In fact, according to data from the Bureau of Labor Statistics (BLS), and CPA licensure data, only about 50% of accountants in the United States are actively licensed CPAs.
Bookkeeping Certification requires the completion of the Accounting Fundamentals course and Bookkeeping Certification exam. The course may be substituted by an approved equivalent course. Certification candidates must receive a minimum of 75% on the exam.
You likely need a CPA for your small business as it grows in complexity, especially with employees, multi-state sales, or if managing finances takes too much time from core business tasks, but you might start with just a bookkeeper and an enrolled agent for simpler needs, with a CPA becoming crucial for complex tax strategy, audits, funding, or significant financial planning. It's less about revenue and more about complexity, risk, and your own financial comfort level.
Do You Need a CPA License to Have a Successful Accounting Career? Absolutely not. Many accounting roles don't require CPA certification. In fact, our Bachelor of Science in Accounting and Master of Science in Accounting are designed as non-licensure programs.
While both accountants and CPAs handle basic accounting tasks, like helping clients prepare tax returns and analyze financial statements, some examples of tasks typically restricted to licensed CPAs include: Representing clients in IRS proceedings (such as a tax audit).
If you want to provide self-employed bookkeeping or accountancy services to the public in the UK, Channel Islands or Isle of Man, you must hold a valid AAT licence and be supervised for anti-money laundering compliance.
How to start a bookkeeping business in 9 steps:
Here are some non-CPA career options for you:
A bookkeeper primarily records and organizes financial transactions (like data entry, invoicing, payroll setup), but cannot provide strategic financial analysis, offer tax advice, conduct official audits, make financial decisions for the business, or file taxes (unless they have special certifications like an EA or CPA). Their role ends at data compilation, whereas accountants interpret that data for bigger picture strategy, forecasting, and high-level compliance.
You'll need 150 semester hours (225 quarter hours) which takes most people around five years. You'll need at least 120 semester hours (180 quarter hours) to sit for the CPA Exam. Passing all four sections of the CPA Exam takes between one and two years. You'll need at least one year of qualifying employment.
The three golden rules of accounting are to (1) debit the receiver and credit the giver, (2) debit what comes in and credit what goes out, and (3) debit expenses and losses, credit income and gains. What are the three types of accounts? The three golden rules of accounting apply to real, personal, and nominal accounts.
Though there's no mandatory certification to call yourself a bookkeeper, having credentials from a professional organization like the National Association of Certified Public Bookkeepers (NACPB) or the American Institute of Professional Bookkeepers (AIPB) can boost your credibility.
Bookkeepers are not required to have certifications or specific education unless required by a specific employer. So, a high school diploma or GED is typically enough to get started. But many employers require additional education, such as a college degree.
If you want to set up your own bookkeeping business, ICB is the most direct route. If you're aiming for an in-house finance role, AAT will give you broader tools. If you've already qualified or have experience, CPD can add polish and professionalism. We don't just throw a course at you—we talk it through.
Every business needs clean books, yet few want to manage them in-house. That's created a steady, quiet demand for reliable bookkeepers, especially among the UK's 5.5 million small businesses. The industry's not just growing – it's shifting.
A CPA is necessary when the situation requires specialized expertise, certification or legal representation. For example, only a CPA can perform financial audits, issue audited financial statements for public companies and represent clients before the IRS during an audit or tax dispute.
Not all accountants are CPAs (certified public accountants), but all CPAs are in the accounting profession. Typically, an accountant has achieved a bachelor's degree in accounting. A certified public accountant earns this designation after completing specific educational and work requirements and passing a CPA exam.
While there are certain state-by-state exceptions about what can and cannot be undertaken by a CPA, they are not required to start an accounting firm. However, if you want to call yourself a “CPA firm,” you will need a CPA.