Usually, the entry-level salary for both bookkeepers and accountants tends to be similar; however, the earning potential of an accountant tends to increase as their career progress. It is not uncommon for an experienced bookkeeper to make a career transition into accounting or another profession. As bookkeepers work closely with raw data, they tend to develop a good understanding of how a business works. If you want to work from home as a bookkeeper, you’ll need to invest in your professional development. Watch for webinars, online courses, books, and training sessions relevant to the bookkeeping, finance, business, and accounting industries. Some of these companies hire bookkeepers as W2 employees, while others hire as independent contractors or freelancers.
While you can do it yourself if you know numbers and spreadsheets, the tasks can be time-consuming and cut into your other business responsibilities. This includes calculating wages, figuring out tax deductions and other withholdings, and making sure payments go out on time. Staying up-to-date with payroll rules helps the business pay people correctly and handle payroll taxes properly. They also process and track bills from suppliers (accounts payable) and help ensure your business pays on schedule, which aids in managing the company’s cash. If you opt for bookkeeping software—like Quickbooks—keep in mind the time commitment required to learn how to properly use the program. While these programs are cost effective, you are paying with your time.
You may also pursue certification programs or use online courses to become a self-taught bookkeeper. Many of the processes, policies, and procedures include detail-oriented tasks to ensure financial accuracy. Becoming an accountant usually requires more training and education than bookkeeping and can be a good next step in your financial career. Among other things, you’ll want to gain a firm understanding of accounting principles, get comfortable using popular bookkeeping software, and learn how to work with spreadsheets. While you don’t need to hold a college degree to get started as a bookkeeper, this role generally requires a high school diploma or a General Educational Development (GED) certification. If you really want to understand what a bookkeeper is, it’s wise to take a close look at the bookkeeper duties.
- Another key responsibility of a bookkeeper is managing tax filings.
- Bookkeepers often help with employee pay calculations, benefits, and tax withholdings, ensuring staff are paid correctly and on time with correct documentation.
- You’ll also need to use some accounting software to manage your client’s finances.
Bookkeeper Education, Training & Certification
Bookkeepers focus on daily financial tasks, while accountants analyze financial data, prepare reports, and offer strategic advice. Accountants also handle tax filings, while bookkeepers maintain the records. A bookkeeper needs more than data entry skills, they must understand foundational accounting concepts and stay updated on relevant tax rules. This knowledge ensures accurate categorization of transactions and prepares a business for seamless tax filing, while reducing the risk of penalties or delays caused by overlooked regulations. Lauren Colson is a numbers geek with over 13 years of financial experience. From large publicly traded companies to high-growth startups, these industries cultivated her passion.
What education did you need to pursue this career? How did it prepare you for bookkeeping?
Of course, you can also search for remote jobs with major corporations in the financial services industry, healthcare and insurance industries, and even HR services providers. Working for a company, a bookkeeper’s salary typically runs between $49,210 for full-time positions. Of course, the advantage is that you don’t have to worry about the steadiness of the hours, and you may even receive benefits. But working for a company might mean you have to work a set schedule with lower pay. According to the Unted States Bureau of Labor Statistics (BLS), the hourly rate for bookkeepers and auditing clerks is $23.66 per hour. However, more experienced bookkeepers and those who run their own businesses can earn much more, anywhere from $30-$60 per hour.
QuickBooks Online users already have access to verified experts who can support their whole business, from books to taxes. With QuickBooks Live for bookkeepers, you can get peace of mind and personalized expertise focused on your success. An important part of the bookkeeping role involves handling money coming in and going out that are related to sales and purchases. Bookkeepers prepare and send invoices to customers, as well as keep track of who has paid and who hasn’t (accounts receivable).
Every expense a business makes has a category, and bookkeepers ensure it’s placed in the right one. The skills you gain on the job and through credentials can also position you to move into bookkeeping supervisory roles or junior accountant roles. If you are working toward your bachelor’s degree in accounting, some employers may be willing to offer you an accounting job bookkeeper once you earn your degree. Bookkeepers use organized data to create financial reports like income statements and balance sheets—usually monthly or quarterly.
- My suggestion is to first read our free 13-part Bookkeeping Explanation and take our Bookkeeping Practice Quiz.
- Get connected with top-tier bookkeepers through Pearl Talent today.
- You can expect your duties as a bookkeeper to vary slightly, depending on the size and type of organization you work for.
- Individuals who specialize in this field can pursue entry-level bookkeeper and certified bookkeeper roles.
- The role can function as a part-time job to supplement other income, or you can be a full-time bookkeeper.
- If you’re not sure how to market your business, there are plenty of ways to get the word out.
While it’s true no two bookkeeper job descriptions are exactly alike, the skills you need to do well are typically pretty well aligned. When it comes to technical know-how, you’re essentially going to need the same foundation no matter where you end up working. A primary task of a bookkeeper is to record every financial transaction that occurs. The bookkeeper also documents all journal entries, ensuring that each transaction is properly logged and accounted for. These methods ensure accurate financial reporting, support tax regulations, and keep financial records organized. Look for bookkeepers with experience in your industry or a background working with businesses of a similar size and structure.
Individuals can advance their careers by mastering relevant accounting topics, creating accurate reports, and finding discrepancies. Organizations can promote bookkeepers to accounting manager or analyst roles. Modern accounting software is the repository of all financial transactions for your company and can generate requisite reports in real-time. So even if you have accounting software, odds are, you still need a bookkeeper to manage the software, enter data, file reports, identify errors and keep everything current. 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.
