How to Become a Bookkeeper: 5 Key Steps to Success

A total of 150 credit hours in accounting and related areas are commonly needed. Students interested in becoming a CPA should check the specific education requirements in their jurisdictions. Many CPAs also continue their post-secondary education and earn a master’s degree. Bookkeepers, accountants and certified public accountants all work with businesses’ financial data.

Bureau of Labor Statistics salary and labor market information forBookkeeping, Accounting and Auditing Clerksis based on national data, not school-specific information. You can take this exam from anywhere, as long as you have a reliable internet connection. 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. Becoming a certified bookkeeper not only enhances your credibility, but increases your earning potential too. As an independent business owner, you’ll have to learn how to do your freelancing taxes too. An accountant is the one to help the business owner make sense of their numbers, generate financial documents, and plan for the upcoming tax period.

What is the difference between a bookkeeper and an accountant?

Most people would be hard-pressed to describe the difference between an accountant and a bookkeeper. Bureau of Labor Statistics, the median salary for an accountant in 2020 was $73,560 per year, or $35.37 per hour. However, their years of experience, your state and the complexity of your accounting needs affect the price. However, you might hire a CIA if you want a more specialized focus on financial risk assessment and security monitoring processes.

Even so, building your knowledge of essential bookkeeper duties through practice always helps. Hands-on learning opportunities like internships and practicums allow aspiring bookkeepers to gain education and experience at the same time.

Do I Need a Degree in Accounting to Become a Bookkeeper?

A CPA is an accountant who has met their state’s requirements and passed the Uniform CPA Exam. They must also meet ongoing education requirements to maintain their accreditation. Here’s what you need to know about these two roles to determine which one your business needs. Bookkeepers are usually tasked with documenting or checking financial data for a company or client, including checks received or written, invoices, cost spreadsheets, and monthly or quarterly revenue. A bookkeeper is skilled at keeping documents and tracks a wide net of financial information. Mid-size and small public accounting firms pay, on average, about 10% less than the Big Four.

• Accounting degree programs are very popular and commonly available at colleges and universities throughout the United States, as well as through distance learning.
• Let us know what type of degree you’re looking into, and we’ll find a list of the best programs to get you there.
• Once you earn your degree, you will have a much easier time landing bookkeeping jobs.
• They do, however, need to have an understanding of basic and key financial topics and also have an eye for accuracy.
• Franklin University offers fully-online bachelor’s and master’s degrees in accounting, offering flexibility for working professionals to complete their degree.

For example, along with typical accounting duties, some companies may want you to handle their payroll, track overdue accounts, or participate in annual or quarterly budgeting. Bookkeepers help businesses keep track of their financial transactions, so they need strong skills in math and financial accounting. Read this article to learn more about how to become a bookkeeper, including bookkeeping training and certification as well as bookkeeping classes. 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.

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Many people and businesses use spreadsheets and computer software for their general ledger, so bookkeepers must have the computer skills to use different types of record-keeping interfaces. Accountants also need computer literacy to access and analyze that data. If you’re not ready to hire a full-time bookkeeper or accountant, you still have a few options. It’s always a good idea to start with bookkeeping software to track income and expenses. But managing your full company finances can still take time and considerable dedication. While accounting involves the review of financial records that the bookkeeper prepared, it also includes the concept of protecting business properties.

All accounting degree programs–online, campus, or hybrid–should be accredited by an agency or organization that is recognized by the U.S. Department of Education and the Council for Higher Education Accreditation . In the accounting field, the primary accrediting body is the Association to Advance Collegiate Schools of Business . Some schools also pursue accreditation specifically for their online accounting programs through the Distance Education Accrediting Commission . So when considering a career as a bookkeeper, it is possible to be hired and receive on-the-job training with just a high school diploma and work using your basic math skills. Certificate and degree programs may help candidates bypass some junior-level experience requirements.

Technology and bookkeeping go hand in hand

Typically offered as a Bachelor of Science, a four-year degree in accounting is a highly specialized program that prepares graduates to work in varied capacities within the accounting industry. This level of education may be ideal for students who are not looking to become certified public accountants , as the certification requires additional coursework at the graduate level. Graduates of an accounting degree program will have an in-depth and holistic knowledge of the business cycle and the accounting principles governing responsible practices. Practical experience is also widely recognized as vital to help students deepen their understanding of accounting and finance topics and prepare for professional roles. This can be a formal requirement of the degree, or simply an extra option that students are encouraged to pursue, often with advice and support from course leaders and the university careers service.

• After getting an official certification, you can also choose to get a license to become a Certified Public Bookkeeper.
• This study surveyed only a small fraction of accountants, but it is not hard to understand why they reported such positive feedback about their occupations.
• Also search out sites created especially for new grads, such as collegerecruiter.com.
• The main difference between the two is that a bookkeeper organizes financial data while an accountant interprets financial data.

For a long-term career, accounting offers much more upward mobility and income potential. The education required to be competitive in the field is greater, but the payoff down the road can be considerably higher. Both careers, accounting in particular, cover a broad gamut of starting salaries. 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. As a financial auditor, you may work as an “external” or “internal” auditor.

Specializing as a bookkeeper vs. an accountant

Therefore, those who do not like math, get confused easily when making simple calculations, or are generally opposed to number crunching should not apply. With bookkeepers, there are a lot of minutiae involved, and keen attention to detail is paramount. Meanwhile, accountants tend to use the bookkeeper’s inputs to create financial statements and periodically review and analyze the financial information recorded by bookkeepers. Bookkeeping is essential to running any business because it ensures that there are accurate records of all financial transactions and that these transactions are properly recorded and processed. They can determine where money is going, how much they have in their account, and how much they need to pay out to their employees or vendors.

UGA offers an online bachelor’s degree in special education and multiple online graduate programs in education. Degree-seekers can also earn master’s degrees in community nutrition, international biomedical regulatory sciences, emerging media, and avian health and medicine. Other available online master’s programs include business, technology, and social work. A bookkeeper not only records the numbers but can also interpret them. Managers who are responsible for business strategy or development do not always have the kind of understanding of ledgers and bank statements that bookkeepers do. Bookkeeping is neither simple bill paying nor strategic financial planning. Effective bookkeeping includes being able to analyze the movement of funds to optimize benefits to the company, but does not reach so far as to include investment or debt management.

Accountants and bookkeepers both perform basic math operations every day and may also be required to do more advanced calculations when working with taxes and investments. An accountant’s specialization has a large impact on their daily duties, while the job description of a bookkeeper is fairly static regardless of the situation. For example, a forensic accountant might spend time investigating fraud, while a staff accountant would spend more time doing clerical work and giving tax advice. Most positions do not have specific formal education requirements and instead prioritize past clerical work experience.

It is based on the accounting equation that states that the sum of the total liabilities and the owner’s capital equals the total assets of the company. Bench gives you a dedicated bookkeeper supported by a team of knowledgeable small business experts. We’re here to take the guesswork out of running your own business—for good. Your bookkeeping team imports bank statements, categorizes transactions, https://www.bookstime.com/ and prepares financial statements every month. 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. CPA hopefuls need at least a bachelor’s degree with coursework in accounting, business, or finance.

In short, accountants deal with regular upkeep and reconciliation of the accounts. Accountants should reconcile every single balance sheet for every account each month, without question. This process is imperative if leaders want to have confidence when they review their income statements. Should I become a bookkeeper or an accountant A bookkeeper is also limited by licensing which a Certified Public Accountant has for the issuing of audited statements. Companies need these commissioned documents to fulfill regulations for permits and licenses or when dealing with other financial institutions such as banks.

If you are interested in becoming an accountant, it may be beneficial to your career to become a certified public accountant , which has its own exam. You must have a minimum of 150 postsecondary education hours, or what amounts to a bachelor’s degree in accounting, and an additional 30 hours of graduate work. The two careers are similar, and accountants and bookkeepers often work side by side. However, significant differences exist, like work conducted in each career and needed to be successful. The following analysis compares the education requirements, skills required, typical starting salaries, and job outlooks for accounting and books.

Step 2: Gain bookkeeping skills

Throughout either degree program, students will undertake specialized courses to help them deepen their knowledge and develop pertinent skills. Below is a list of some of the classes graduate students could expect to take. Provides an overview of common accounting principles and terminology; basic topics including how to record financial transactions and preparing an income statement will be covered. I’m looking for program that will introduce me to the field and cover fundamental accounting principles and skills. Ideally, the program should allow me to take my education to the next level should I decide this is the right path for me.