How to become a bookkeeper

Most startups don’t employ a dedicated bookkeeper to start, but a growing business needs bookkeepers to streamline financial operations and ensure financial statements are in order for external examination. There isn’t a set profit level when a bookkeeper is needed, but tax filing, higher profits, and a larger pool of employees might be reasons that necessitate hiring a bookkeeper.

What is bookkeeping?

Bookkeeping is a process that a company uses to keep a record of all its financial transactions. The name comes from creating and maintaining records in a book, although many bookkeepers now use spreadsheets and software to track incoming and outgoing monies.

What is a bookkeeper?

Bookkeepers create a comprehensive record of financial transactions. This allows companies to:

• spot errors quickly
• apply for loans or funding
• file taxes correctly
• look for opportunities to save money

In doing this, a company has a detailed overview of how they make and spend money.

Bookkeeping tasks

Bookkeepers organize their tasks according to time periods, typically based on a set daily, weekly, monthly, quarterly, and yearly financial process. These procedures include:

• reconciling invoices, payroll, expenses, taxes, company overhead, and one-off costs
• processing accounts receivable/payable
• checking figures and documents for accuracy
• assisting audits
• entering data and maintaining records

Difference between a bookkeeper vs. accountant

Generally, accountants are more involved in reports and analyses, as well as making recommendations to upper management. Bookkeepers focus more on the details of tracking and recording.

What is a full-charge bookkeeper?

A full-charge bookkeeper is someone who manages all of a business’s accounting needs. Usually, full-charge bookkeepers work in small- to medium-sized businesses and are the only ones responsible for all accounting duties.

How to become a bookkeeper in 3 steps

In deciding to become a bookkeeper, you’ll need to consider education, experience, and the skills required to meet the responsibilities of the job.

Step 1: Enroll in an undergraduate program

While you might be able to get a job as a bookkeeper with a high school diploma, many employers look for candidates with an associate degree in accounting or a related field.

Other students may opt for earning a bachelor’s degree that provides a strong foundation in general math, statistics, and economics. There isn’t a specific degree in bookkeeping, but the information and skills gained in a bachelor’s degree in accounting, finance, or business administration are ideal for advancing your bookkeeping career.

Step 2: Build experience and sharpen your skills

Prospective employers may ask for experience in a specific industry, which can be obtained through internships or a practicum.

Step 3: Consider bookkeeping certification

There is no specific licensing requirement for bookkeepers. However, there are bookkeeping certificates available that can help you get noticed by prospective employers.

You can become a certified bookkeeper(CB) through the American Institute of Professional Bookkeepers (AIPB). The institute offers courses to help you become a CB and continuing education programs to maintain your status.

How hard is it to become a bookkeeper?

Becoming a bookkeeper is relatively easy because it doesn’t require an advanced degree. Many bookkeepers learn through self-study, a certification program, or some college coursework. While excellent basic math skills are required, advanced skills like statistics and calculus are not.

Average bookkeeper salary

Salaries for bookkeepers depend on years of experience, levels of responsibility, and size of employer. See below for more detailed salary and career projection information.

Continuing education

Advanced degree programs are typically needed to progress further in a finance career – for example, to become an accountant or finance manager.

Experienced bookkeepers with at least a bachelor’s degree will have already fulfilled the education and experience requirement for becoming a CPA, and might consider prepping for the CPA exam.

You can also find in-person and online professional courses in bookkeeping meant to update and/or enhance your skills. They range from level 1 to level 4 and include:

• computerized bookkeeping
• payroll
• accounting
• cash management

Another way to enhance your knowledge and improve your career is to take courses that focus on learning how to use new accounting software.

Should I become a bookkeeper?

Bookkeeping is a core part of any company, which makes this a good career choice. You don’t have to limit yourself and work for a single firm. You could, for instance, become a freelance bookkeeper and provide services to several smaller businesses.