Going solo as a bookkeeper after years in a firm works best with three things settled before you resign: savings for several months of costs, a clear reading of which clients your contract lets you take, and the systems the firm used to provide. Then the first months alone go on finding clients, not fixing gaps.
When is going solo as a bookkeeper realistic?
Going solo as a bookkeeper is realistic when you can close a client's month without a reviewer, you know where your first clients will come from, and you have money to live on while fees build up. Skill alone is not enough. Many strong bookkeepers leave a firm and discover that finding and keeping clients is a second job.
Signs you are ready
- You run closes end to end. You reconcile, categorize, review and send reports without a senior checking every account.
- You can talk to owners. You have handled client questions, chased late statements and explained a report on a call.
- You have warm leads. At least a handful of people, such as tax preparers, former colleagues or friends who own businesses, have said they would send work your way.
- Your household can absorb uneven income. A partner's salary, savings or a part-time job covers the months when fees are low.
Signs to wait
If you have only ever worked on one part of the close, such as data entry or payroll, a few more months at the firm learning the rest will pay off. The same goes if your only lead is "I'll put up a website." Websites rarely bring a new practice its first clients.
Testing the move before you make it
A trial run lowers the risk. If your employer allows outside work, take one small client in the evenings for three months. You will learn how long a close takes without firm templates, how you handle a client who sends statements late, and whether you enjoy the sales side. If the employer does not allow it, practice the parts you can: draft your engagement letter, price three imaginary clients and list the people you would call in your first week.
Savings to hold before going solo from a firm
Savings for going solo from a firm should cover your personal and business costs for the months it takes client fees to replace your salary. For many new practices, that is six months or more. Work it out from your own numbers rather than a rule of thumb, because rent, family size and how quickly clients sign all vary.
A worked runway example
The figures below are an example for a single bookkeeper leaving a salaried role. They are illustrations, not benchmarks.
| Item | Example monthly amount |
|---|---|
| Personal living costs | 3,800 |
| Health insurance bought privately | 550 |
| Software and storage | 150 |
| Professional liability insurance | 60 |
| Phone, internet share and misc | 90 |
| Total monthly need | 4,650 |
Next, estimate how quickly fees will build. Suppose the bookkeeper expects to sign one monthly client a month at an example average of 500 per month, plus one small catch-up project every other month at 1,200.
| Month | Example monthly fees | Example project income | Shortfall against 4,650 |
|---|---|---|---|
| 1 | 0 | 0 | 4,650 |
| 2 | 500 | 1,200 | 2,950 |
| 3 | 1,000 | 0 | 3,650 |
| 4 | 1,500 | 1,200 | 1,950 |
| 5 | 2,000 | 0 | 2,650 |
| 6 | 2,500 | 1,200 | 950 |
The total shortfall over six months in this example is 16,800. Add a buffer for slower months, and for income tax the firm used to withhold, and the savings target is closer to 20,000 to 22,000. Run the same table with your own figures before you set a leaving date.
Taxes the firm used to handle
As an employee, tax came out of each paycheck. As a solo bookkeeper, you will usually make quarterly payments yourself. The IRS page on estimated taxes says sole proprietors and others generally must make estimated payments if they expect to owe 1,000 dollars or more when they file. Put a share of every fee into a separate tax account from the first invoice.
Which firm clients can a solo bookkeeper take?
Which firm clients a solo bookkeeper can take depends first on your employment agreement and second on how you leave. Many firm contracts include a non-solicitation clause that bars you from approaching the firm's clients for a set period. Read your agreement before you tell anyone you are leaving, and get a lawyer's view if any clause is unclear.
Reading the agreement
Look for three kinds of clauses:
- Non-compete. Limits where or for whom you may work after leaving. Enforceability varies by state.
- Non-solicitation. Bars you from asking the firm's clients or staff to follow you, often for one or two years.
- Confidentiality. Covers client lists, pricing and files. Taking a client list on a USB stick can break it even if you never use it.
When a client approaches you
Some clients will hear you have left and contact you on their own. Whether you can accept them depends on the wording of your agreement. Some clauses cover only solicitation, others cover any work for a firm client. Do not guess. Ask a lawyer, and when in doubt, refer the client back to the firm.
Clients outside the firm
Your safest first clients are people the firm never served: your own network, referrals from tax preparers and new businesses in your area. The guide to landing your first bookkeeping client covers where to look and a small project to offer as a first step.
First systems a solo bookkeeper builds before leaving
The first systems a solo bookkeeper builds before leaving are the ones a firm quietly provided: engagement letters, a way to receive client files, a client task calendar, billing and a statement workflow. On your first Monday alone there is no admin team and no IT desk. Build these during your notice period, or in the weeks before you resign.
A systems checklist
- Engagement letter template with services, fees, statement deadlines and how either side can end the work.
- Client file storage with a folder per client and year, and a secure way for clients to upload.
- Close calendar listing each client, when statements are due and when reports go out.
- Billing that sends invoices on a schedule and takes card or bank payments.
- Statement workflow that turns each month's PDF statements into transactions without typing.
- Your own books, with a business bank account opened before the first payment arrives.
The fifth item is the one firms often hide behind staff. At a firm, someone else may have downloaded statements or keyed transactions. Alone, every statement is yours. AutoBankConvert converts a folder of statements across clients at once, checks each one balances and exports categorized transactions for QuickBooks or Xero, which keeps a solo month end from turning into data entry. The full list of what to buy now and what can wait a year is in tools to start a bookkeeping business with.
Subcontracting for your old firm after going solo
Subcontracting for your old firm after going solo can turn a former employer into your first steady client. Firms often have more bookkeeping than staff, especially around tax season. Offering to keep doing some of their client work as a contractor gives you income while your own client list grows, and it keeps the relationship friendly.
How the arrangement usually runs
The firm keeps the client relationship and the billing. You do the work under the firm's name, using its processes or your own, and you invoice the firm at an agreed rate. The client may never know a subcontractor is involved. This model is often called white label bookkeeping, and the guide to white label bookkeeping for CPA firms explains who talks to the client and what to agree in writing.
What to agree
Set the hourly or per-client rate, the turnaround times, who reviews your work and how files move between you. Agree on what happens to non-solicitation terms while you work for them. A written contract protects both sides, and it should replace any informal promise made on your last day.
Leaving a firm badly as a new solo bookkeeper
Leaving a firm badly as a new solo bookkeeper costs more than an awkward goodbye. Bookkeeping is a referral business, and the partners at your old firm know tax preparers, bankers and attorneys in your area. A messy exit can close those doors before your practice opens.
Exits that tend to go wrong:
- Telling clients before telling your manager. Even when your contract allows it, clients will tell the firm, and the firm will remember.
- Leaving work half done. Finish the month's closes or hand them over with notes. Unfinished reconciliations land on a colleague.
- Copying files on the way out. Client data belongs to the client and the firm. Keep only your own personal records.
- Undercutting the firm on price to its own clients. Even if your agreement permits it, it reads as poaching.
A clean exit is a long notice period, complete handovers and an offer to help with questions afterward. The firm may become a client, a referral source or simply a reference. Each of those is worth more to a new solo practice than any single client you could have taken.