A non compete for bookkeepers usually limits doing similar work for a set time, within an area or for the firm's clients after you leave. A non-solicit clause is narrower: it bars you from approaching the firm's clients or staff. Whether either holds depends on your state's law and the exact wording, so read the agreement before taking any client.
What does a non compete for bookkeepers usually restrict?
A non compete for bookkeepers usually restricts three things: how long after leaving you must wait, where you may work, and which kinds of work or clients are off limits. A typical clause might bar you from offering bookkeeping services within a stated distance of the office for one or two years. Some clauses name only the firm's existing clients.
The wording matters more than the label at the top of the clause. Look for these parts and note each one:
- Duration: how many months the restriction runs after your last day.
- Geography: a distance, a county or a list of states, or no limit at all.
- Activity: bookkeeping in general, or only services the firm itself sells.
- Clients covered: all clients, clients you personally served, or prospects as well.
The role you held can affect what a clause reaches. A staff bookkeeper and a staff accountant may sign the same template, yet the services each could offer afterward differ. The guide to bookkeeper vs accountant explains where those roles part ways.
How does a non-solicit clause differ from a bookkeeping non compete?
A non-solicit clause differs from a bookkeeping non compete because it limits who you approach, not whether you work. You can usually open a practice the next day, but you cannot contact the firm's clients or recruit its staff for the stated period. Many firms rely on non-solicit terms because they are narrower and easier to defend.
Read the verb in the clause. "Solicit" usually means you initiate contact. "Accept," "serve" or "do business with" go further and can cover a client who finds you on their own. A clause that bars you from serving any firm client is close to a non compete, whatever its heading says. Confidentiality clauses add another layer, since client lists and fee schedules usually belong to the firm.
An example clause, read line by line
This clause is made up for illustration:
For twelve months after termination, Employee will not solicit or accept bookkeeping engagements from any client Employee served in the final year of employment.
- "Twelve months" sets the duration.
- "Solicit or accept" covers clients who approach you, not only those you approach.
- "Any client Employee served in the final year" limits it to your own recent clients, not the whole client base.
State law and the federal noncompete rule for bookkeepers
State law decides whether a non compete for bookkeepers is enforceable, because there is no federal ban in force. The FTC's Noncompete Rule page says the rule is not in effect and not enforceable, explains that a district court stopped enforcement on August 20, 2024, and notes that the FTC moved to dismiss its appeal on September 5, 2025.
That leaves the question with your state. States differ widely in how they treat these clauses, and courts often look at whether the time, place and scope are reasonable for the job you held. A short consultation with an employment lawyer in your state, with the agreement in hand, is cheaper than a dispute later.
Checks before taking a former employer's bookkeeping clients
Before taking a former employer's bookkeeping clients, confirm what you signed, what it covers and how the client came to you. Do this before your notice period begins if you can. A client relationship that starts with a breach of contract tends to end badly for everyone, including the client.
A pre-acceptance checklist
- Find every agreement you signed: offer letter, employment contract, handbook acknowledgments and any bonus or equity agreements.
- Note each clause on non compete, non-solicitation and confidentiality, with its duration and scope.
- Check whether the client is covered: all firm clients, only yours, or prospects too.
- Record, in writing, who made first contact and when.
- Confirm you hold no firm files, lists or templates.
- Get a lawyer's view on any clause you cannot read with confidence.
New clients from outside the firm carry none of this risk. The plan in the first 90 days of a bookkeeping business shows how to fill a new practice from your own network and referral partners instead.
When a former firm's client calls the departing bookkeeper
When a former firm's client calls the departing bookkeeper, the safe response depends on whether your agreement covers accepting work, not only soliciting it. If it does, explain that you cannot take the engagement for now and refer the client back to the firm. If it covers solicitation only, take advice before you accept.
Either way, keep a written note of the call: the date, who called and what they asked. If the client does move to you when permitted, start from a fresh engagement letter and fresh access, never from data you kept. Your own checks matter more without a firm behind you, and the guide to a bookkeeping quality control process covers the reviews a solo practice can run. When the client's statements arrive, AutoBankConvert can convert them into a new workspace that holds only that client's accounts and rules.