How Much Does It Cost To Start an Accounting Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 3 min read
Updated: 4 hours ago
Starting your own accounting business can be a rewarding move—both professionally and financially. Whether you're a CPA branching out on your own or an experienced bookkeeper launching a firm, understanding the cost to start an accounting business is essential for planning and long-term success.
At Wexford Insurance, we specialize in helping small business owners—especially in niche industries like fiber optic and telecommunications—find tailored insurance coverage. But we also support professionals in other fields, including accounting, by helping them understand the financial and legal steps involved in launching a business.
Average Startup Costs for an Accounting Business
The accounting firm startup costs can vary depending on your location, business model, and whether you’re working from home or leasing office space. Here’s a breakdown of common expenses:
1. Business Registration and Licensing
Business entity formation (LLC, S-Corp, etc.): $50–$500
CPA license renewal (if applicable): Varies by state
Local business permits: $50–$200
2. Office Space and Utilities
Home office setup: $500–$2,000
Leased office space: $500–$2,000/month
Utilities and internet: $100–$300/month
3. Technology and Software
Laptop or desktop computer: $800–$2,000
Accounting software (QuickBooks, Xero, etc.): $30–$100/month
Secure file storage and backup: $10–$50/month
4. Marketing and Branding
Website and domain: $200–$1,000
Logo and branding: $100–$500
Business cards, brochures, and ads: $100–$1,000
5. Professional Services
Legal or business consulting: $200–$1,000
Continuing education or CPA CPE credits: $300–$1,000/year
6. Insurance for Accounting Businesses
Protecting your business with the right insurance is critical. Here are the most common types of insurance for accounting businesses:
Professional Liability Insurance (E&O): $500–$1,500/year
General Liability Insurance: $300–$600/year
Commercial Property Insurance (if leasing space): $500–$1,000/year
Workers’ Compensation Insurance (if hiring employees): Varies by state
Equipment Insurance : $300–$1,000/year
Commercial property insurance: $500–$2,000/year (covers your office, warehouse, or equipment storage location)
Total Estimated Startup Cost
Depending on your setup, the total cost to start an accounting business typically ranges from $2,500 to $15,000. Home-based solo practices will be on the lower end, while firms with leased offices and staff will see higher startup costs.
Why Insurance Should Be Part of Your Startup Budget
Even if you’re just starting out, having the right insurance can protect you from lawsuits, data breaches, and unexpected disruptions. At Wexford Insurance, we help accounting professionals find affordable, customized coverage that fits their business model and risk profile.
We understand that accounting firms face unique risks—especially when handling sensitive financial data. That’s why we work with carriers who understand your industry and offer policies tailored to your needs.
External Resources for Accounting Startups
Recommended Resource for Contractor-Focused Accounting Firms
Serving contractors and construction clients requires efficient systems and clear communication. Contractor Back Office offers invoicing, bookkeeping, and CRM solutions tailored to the needs of contractor-focused accounting businesses—streamlining operations and enhancing client satisfaction.
📌 Learn more about Contractor Back Office and how it can support your accounting business.
Get Expert Help from Wexford Insurance
Starting your own accounting business is a big step—but you don’t have to do it alone. At Wexford Insurance, we’re here to help you protect your investment and plan for long-term success.
