A key advantage of bookkeeping is the flexibility it offers in terms of working hours, making it an attractive profession for those seeking a balanced work-life dynamic. Additionally, the skills developed in bookkeeping are highly transferable, providing a solid foundation for careers in accounting and other finance-related fields. A bookkeeper checks for errors when creating reports and managing the general ledger. You will check bank deposits for fraud, fix balance sheet errors, and maintain accurate payroll records. A proper financial data management system can provide valuable, actionable insights and prevent problems, such as skimming fraud.
Accounts Payable/Receivable Bookkeeper
You may handle payroll functions as a bookkeeper, keep tax withholding records, and issue paychecks or send information to a contracted payroll service. Depending on the organization’s size, keeping track of business expenses and reconciling business statements may be your responsibility. In researching bookkeeping or bookkeeping accounting, you may come across information on accounting or find that bookkeeping and accounting are used interchangeably. While there is some overlap between bookkeeping and accounting, several factors distinguish these processes, as we explore in the table below.
How to Become a Certified Bookkeeper
The primary difference between the AIPB’s certification and NACPB’s license is the resulting title. Those credentialed by AIPB earn the Certified Bookkeeper (CB) designation. Those who earn licensure through NACPB gain the Certified Public Bookkeeper (CPB) title. The first is the American Institute of Professional Bookkeepers (AIPB), and the second is the National Association of Certified Public Bookkeepers (NACPB).
- Employers are less likely to ask for certified evidence of your skills if you’ve been working as a bookkeeper for years.
- Beginner Bookkeeping provides a free and easy Excel Cash Book for tracking income and expenses plus a profit and loss report.
- Bookkeeping may also include the creation of financial statements and processing payroll.
- Once you become a qualified bookkeeper, you can work as a permanent employee or freelancer.
- While a certificate is not a requirement to become a bookkeeper, some professionals pursue certification to show their skills to employers and stand out in their job search.
Bookkeepers Vs Accountants
Ring around or go online and get some quotes from different bookkeeping agencies. The idea of sorting through receipts and financial transactions and getting it into good order is likely unappealing to many people. Like any new skill, bookkeeping is hard until you have learned how it works and then do it regularly. If you don’t want to sit in front of a computer for hours a day, being a bookkeeper probably isn’t for you. Your duties as a bookkeeper will likely be similar from day to day, which can be repetitive over time.
- The BLS projects employment for bookkeeping, accounting and auditing clerks to decline by 6% by 2032.
- Accountants analyze financial trends and provide companies with a strategy for maintaining their financial health.
- Technological advancements are perpetual in bookkeeping, and adapting to new software and tools is imperative for maintaining accuracy and improving efficiency.
- In this article, you’ll learn more about what bookkeepers do, why they’re important to a business, and how much they earn.
- Compare this to the expected 126,500 annual openings for accountants and auditors (BLS).
- Strong critical thinking and math skills will allow you to easily solve any number-related problems and resolve any bookkeeping challenges that come your way.
- When starting a business, it’s important to understand all the expenses you’ll potentially be making.
Once you become a qualified bookkeeper, you can work as a permanent employee or freelancer. Bookkeepers are important professionals in today’s economic and financial fields. Every company, even a small one, requires bookkeeping to maintain a healthy financial position. Earning a bookkeeping certification is being a bookkeeper hard involves weeks of studying, hours of test preparation and a significant financial investment. Additionally, maintaining a bookkeeping certification from NACPB or AIPB requires continuing professional development. Bookkeepers earn a median annual salary of $45,860, according to the U.S.
Bookkeeping Certification Salary Potential
- Even so, the BLS projects an average of 183,900 openings for bookkeeping, accounting and auditing clerks.
- Bookkeepers usually deal with the recording of transactions in a company’s financial records.
- The median salary for these roles is also higher than for bookkeepers at $77,250 per year [4].
- However, you need to obtain certain skills and abilities to have a successful bookkeeper career.
You can work from the comfort of your home and communication with your clients will be over email or phone. Bookkeeping is a super flexible side hustle that can be completed from anywhere worldwide. If you are a bookkeeper and absolutely love numbers and analysis, then that’s a good start to becoming an accountant. If you don’t want to feel discouraged before you even start, you should highly consider taking these 3 free classes.
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