How to Become a Bookkeeper

Rarely does a bookkeeper work on one big project for an eight-hour shift; instead, a typical workday involves juggling five or six smaller jobs. Nearly all bookkeeping is done using computerized accounting software and programs, so bookkeepers should be comfortable learning new technology if not proficient in it. When it’s finally time to audit all of your transactions, bookkeepers can produce accurate reports that give an inside look into how your company delegated its capital. The two key reports that bookkeepers provide are the balance sheet and the income statement. The goal of both reports is to be easy to comprehend so that all readers can grasp how well the business is doing.

Accountants, on the other hand, tend to use the bookkeeper's inputs to create financial statements and periodically review and analyze the financial information recorded by bookkeepers. We've listed some of the key differences when it comes to the requirements and job market for each. As you dive deeper into the bookkeeping process, it may be tempting to blur the lines between your personal and business finances, but it’s not the best idea. By avoiding this, you’ll reduce the risk of triggering an IRS audit and will allow an accurate picture of your business finances. Customers schedule an appointment to have a bookkeeper review their transactions, and  multiple schedules are available to choose from. You will have access to a client management portal, and can communicate with customers through video conferencing and messaging.

Career Benefits

As a bookkeeper, you will verify and balance receipts, keep track of cash drawers, and check sales records. Bookkeepers also deposit money, cash checks, and ensure correct credit card transactions. Small businesses may prefer to handle their books themselves, but hiring a professional bookkeeper can be helpful. Keeping the books is just one of the tasks modern bookkeepers might handle.

• However, bookkeepers need more work experience for CB certification than they do for CPB licensing.
• However, you will likely need to complete a degree program and other certifications to be an accountant or move beyond a bookkeeping role.
• That sounds like a mouthful, but often that just looks like inputting all your transactions into accounting software.
• Having the ability to prepare an accurate financial picture of an enterprise and keep records organized is essential for being a bookkeeper.
• Accountants typically have at least a bachelor’s degree in accounting, and many go on to become certified public accountants (CPAs) or certified management accountants (CMAs).
• While it’s not always necessary to have a degree, some companies will look for candidates with coursework in accounting.

In addition, you must be a member of the Association of Certified Fraud Examiners. In most cases, employers want to hire someone with a bachelor's degree, and a master's degree may help boost your earnings. An enrolled agent (EA) is a tax professional authorized by the United States government. Their job is to advocate and assist taxpayers when they have issues with the Internal Revenue Service.

How much you make as a first-year accountant depends mainly on the specific career path you pursue. While accounting can be a lucrative long-term career, most accountants, unlike corporate attorneys or investment bankers, do not command huge salaries during the first few years. But if you have the time to dedicate trial balance: definition and overview to updating your books regularly, doing your own bookkeeping may be feasible. Your general ledger should be up to date so that your bookkeeping software is able to provide functionality that you can navigate easily. QuickBooks is an excellent option for novice and seasoned digital bookkeepers alike.

Now that you understand how to become a bookkeeper, you are ready to get started on your new path. Whether you are already in the bookkeeping field or just starting out, this guide can help you determine your next steps. If you’re interested in being a freelance virtual bookkeeper, you can sign up for freelance marketplace websites to connect with potential clients. Freelance jobs can range from quick temporary projects to long-term employment. However, they may be less likely to offer training or educational opportunities. Your Intuit Certified Bookkeeping Professional badge can be used to show any employer or client that you have an understanding of bookkeeping and accounting.

You can use these to make business decisions, but they should not be presented as audited, certified or official financial statements. Often, office management tasks like customer billing, paying vendors and payroll are considered to be bookkeeping tasks. Although accounts receivable, accounts payable and payroll do impact your books, some of these tasks can be managed by a person in your company other than your bookkeeper.

How Intuit helps tax and bookkeeping pros do their best work

Some bookkeepers, especially those with bachelor's degrees in accounting, may decide to become certified public accountants (CPAs). CPAs have similar job responsibilities to bookkeepers, but must also analyze data, suggest best practices, and make predictions. Bookkeeping is a crucial function of accounting, and earning a bookkeeping certification is a great way to show employers your expertise. 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. Your job as a bookkeeper entails systematically keeping track of an organization's financial transactions. For the information to be reported as a financial statement, it needs to be identified, accepted, classified, and recorded.

Prepare bank deposits.

Some aspiring professionals may pursue internships or practicums while pursuing postsecondary degrees or certificate programs. This experience will help individuals reach hourly certification minimums efficiently. If you're organised and enjoy working with numbers, a job as a bookkeeper could be a good fit. The requirements will vary based on the organisation you work for and your responsibilities.

Access to detailed records of all transactions

However, you will likely need to complete a degree program and other certifications to be an accountant or move beyond a bookkeeping role. Therefore, there are often opportunities opening up for in-house bookkeepers, remote bookkeepers, or freelance bookkeepers. An undergraduate degree will take 2-4 years and can pursue higher-paying positions in the field than those without a credential. Professionals who learn through on-the-job training can grasp essentials after about six months in entry-level roles. Most bookkeepers hold high school diplomas and have completed postsecondary courses in relevant subjects, like accounting. You typically maintain accurate accounting records across all transactions while communicating with others.

The Bureau of Labor Statistics (BLS) projects that jobs for bookkeepers, accountants, and auditing clerks will decline by 5% from 2021 to 2031. However, the profession will still add 197,600 openings annually to fill roles held by retirees or job changers. Start building the professional skills you need to get a job as a bookkeeper in two months with the Intuit Academy Bookkeeping Professional Certificate on Coursera. Learn at your own pace from industry experts while getting hands-on experience working through real-world accounting scenarios. Accounting refers to the analysis, reporting and summarizing of the data that bookkeepers gather.

The advent of accounting software significantly lessened the tediousness of bookkeeping by handling debits and credits for you in the background. And technologies like optical character recognition (OCR) and bank feeds have come just short of fully automating the traditional bookkeeping process. Data entry can now happen as soon as you snap a photo of a receipt with your smartphone. And reconciliations happen almost in real time through daily bank feed maintenance, making the end-of-month closing process a snap. Now one bookkeeper can manage the bookkeeping for several businesses in fewer than eight hours a day. These services include recording what money comes into and flows out of a business, such as payments from customers and payments made to vendors.

Because bookkeepers tend to work for smaller companies, they may not be paid as much as accountants. Knowing the differences between the two can help people find their niche in the industry and can give guidance to companies on who to hire for their needs. When a bookkeeper wants to leap to being an accountant, they will need to take the CPA exam, plus earn a bachelor's degree (most of the time), if they do not have one already. Fifty states plus the District of Columbia require accountants to earn 150 credit hours of college education before taking the national four-part Uniform CPA exam. Double-entry bookkeeping is the practice of recording transactions in at least two accounts, as a debit or credit.