Certifications aren’t necessary to become a bookkeeper but can signal to employers that you have the training and knowledge to meet industry standards. After you have a few years of experience, you can earn the Certified Bookkeeper designation from the American Institute of Professional Bookkeepers by passing a series of exams. If you’re organized and enjoy working with numbers, a job as a bookkeeper could be a good fit.
So, what does a bookkeeper do all day?
As of 2021, approximately 1.7 million people worked as bookkeeping, accounting, or auditing clerks. The BLS expects the field to have a 5 percent decline in growth from 2021 to 2031. Still, you should see 197,600 job openings each year over the next decade [3]. To become certified, you need to pass a four-part examination, show two years of full-time bookkeeping experience or 3,000 hours of freelance or part-time experience, and sign a code of ethics.
Accountants take that financial data and help you see the bigger picture and the path your business is on. When comparing accountants and bookkeepers, know that an accountant may also be a bookkeeper. You might need only some or all of these services that can be part of the job of a bookkeeper.
- However, effective time management, organizational skills, and a solid understanding of bookkeeping principles can help mitigate stress in the role.
- This foundation of accurate and organized financial data is critical for the accountant to analyze and interpret.
- The core function of a bookkeeper is to ensure that all bills are paid on time, transactions are recorded correctly, payroll runs on time and taxes are filed correctly.
- As a bookkeeper, you will verify and balance receipts, keep track of cash drawers, and check sales records.
However, if you have a rigorous organizational system and a solid knowledge of rules and regulations, it can be straightforward and easily manageable. Bookkeepers are integral to ensuring that businesses keep their finances organized. If you’re interested in a career as a bookkeeper, consider taking a cost-effective, flexible course through Coursera.
These courses focus on bookkeeping fundamentals to help improve bookkeeping knowledge and skills. For example, you might complete the Intuit Bookkeeping Professional Certificate or several other bookkeeping courses offered by universities and companies on Coursera. Bookkeepers play a vital role in the business accounting cycle by collecting and inputting data.
The skills needed to become a successful bookkeeper are often acquired through working in a career in the finance industry or even by balancing your personal budgets. Many bookkeepers hone and develop their expertise over time while others opt to complete seminars, read books or take online classes. An understanding of accounting principles also empowers bookkeepers to make informed strategic decisions for the business. It enables them to effectively interpret and analyze financial data, providing valuable insights to company leaders when it comes to financial planning, budgeting, and forecasting.
However, more knowledge is always an asset, and a types of liabilities bookkeeping certificate can make your resume look more attractive, potentially helping you to gain clients. Maybe you enjoy the idea of being your own boss, or you’re still wondering if it’s for you. One organization to look into is The American Institute of Professional Bookkeepers. They provide bookkeeping certifications and training, which can officially make you a Certified Bookkeeper. Mostly every business could find value in having someone look after their financial books and records. As an independent business owner, you’ll have to learn how to do your freelancing taxes too.
Regulatory Compliance and Tax Filing
Bookkeeping is a vital profession involved in maintaining accurate financial records for individuals, businesses, and organizations. The following subsections focus on continuous learning, certification, and career pathways for bookkeepers. In today’s digital age, bookkeepers heavily rely on accounting software to facilitate their day-to-day tasks. The utilization of software allows them to efficiently record financial data, including transactions and account balances. Bookkeeping software also automates the report generation process and provides a clear overview of a business’s financial standing in real-time. A bookkeeper’s primary responsibility is to record and maintain financial transactions for an organization, such as accounts receivables, accounts payables, and payrolls.
Bookkeeping for small businesses and sole proprietorships involves managing the general ledger and maintaining accurate records of the company’s financial transactions. Bookkeepers for small businesses typically record journal entries, perform bank reconciliations, handle payroll, and generate financial statements for the owner to make informed decisions. To summarize, bookkeepers play a crucial role in maintaining accurate and organized financial records for various types of businesses.
If you’re thinking about hiring a bookkeeper or want to clean up your business books, there are different bookkeeping types that can suit your needs. The expected job decline is primarily due to cloud computing and other software innovations automating bookkeeping tasks that a person would normally do. Specializing in a career field can help to set you apart and lead to career stability and longevity. You may also be expected to take on more advisory and analytical roles as bookkeeping becomes more automated. Integrity and trustworthiness are important qualities to cultivate as a bookkeeper.
Software Options and Training
If you invoke the guarantee, QuickBooks will conduct an evaluation of the Live Bookkeeper’s work. For example, note which software you want a candidate to be familiar with–including general programs that your office uses. Learning how to become a bookkeeper is also a great career choice if you like the idea of working remotely. Though having a two-year or four-year degree isn’t always required to be hired as a bookkeeper, some companies may prefer candidates who do. While it’s not always necessary to have a degree, some companies will look for candidates with coursework in accounting. According to the US Bureau of Labor Statistics (BLS), the median salary for bookkeepers in the US is $45,860 per year as of 2021 [1].
Best Accounting Software for Small Businesses of 2024
Regardless of the setting, bookkeepers must maintain a high level of accuracy and attention to detail. They must be able to work independently and as part of a team, and they must be able to communicate effectively with clients, vendors, and other stakeholders. As you can see, the steps of how to become a bookkeeper and creating your own virtual bookkeeping business are quite simple. Every bookkeeping skill you need to become a bookkeeper can be found in your home. You can take this exam from anywhere, as long as you have a reliable internet connection. Becoming a certified bookkeeper enhances your credibility and increases your earning potential.
How Do I Get Started in Bookkeeping?
A bookkeeper may also help you run payroll, collect debts, non operating income example formula generate invoices and make payments. An accountant can certainly perform bookkeeping tasks, but the title generally involves other responsibilities as well. An accountant may interpret the financial records that a bookkeeper compiles, in order to assess a company’s financial health.