What Does a Bookkeeper Do? Duties & More

Both the AIPB and the NACPB support the bookkeeping profession, offer membership benefits, and provide professional development opportunities. Both CPB and CB credentials are widely recognized and respected in the U.S. As you can see, the steps of how to become a bookkeeper and creating your own virtual bookkeeping business are quite simple.

Both AIPB and NACPB require previous bookkeeping experience to qualify for their courses. The answer depends on where you are in your career, along with a few other factors. If you’re just starting out as a bookkeeper, earning a certification can help you stand out from the competition. Keep reading to discover what else a bookkeeping certification can offer.

How many times can I take the bookkeeper certification exam?

Specializing in a career field can help to set you apart and lead to career stability and longevity. You may also be expected to take on more advisory and analytical roles as bookkeeping becomes more automated. 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. 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.

This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals. Bookkeepers are integral to ensuring that businesses keep their finances organized. If you’re considering a career as a bookkeeper, then you might consider taking a cost-effective, flexible course through Coursera. Though having a two-year or four-year degree isn’t always required to be hired as a bookkeeper, some companies may prefer candidates who do.

What is a Bookkeeper?

Unlike accountants, bookkeepers mainly keep track of financial data, rather than analyzing it to make decisions. The American Institute of Professional Bookkeepers offers certification for experienced bookkeepers. You will learn how to record costs, value inventory, calculate depreciation, analyze financial statements, and use software programs. The courses cover bookkeeping, Microsoft Excel, business math, and payroll administration. 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.

Bookkeepers must keep thorough, up-to-date records of organizational financial transactions. Bookkeeping requirements also cover reconciliation, the process of comparing internal records professional bookkeeper with bank records to ensure there are no discrepancies. Some aspiring professionals may pursue internships or practicums while pursuing postsecondary degrees or certificate programs.

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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. Professionals who are not interested in leadership may also prefer bookkeeping jobs over accounting roles. Bookkeepers focus on day-to-day transactions and operations, whereas accountants are called on to provide financial advice and strategy recommendations. A bookkeeping certificate can help you find a bookkeeping role, either as an in-house bookkeeper or as a freelancer. Bookkeeping lays the groundwork for many accounting processes, so you can use your experience and knowledge as a stepping stone to becoming an accountant.

To maintain certification, you need to earn at least 60 continuing education credits every three years. A few employers offer on-the-job training for bookkeepers by providing internships and placement programs. According to the US Bureau of Labor Statistics (BLS), most bookkeepers can learn the profession’s basics in about six months [3]. Once you become a qualified bookkeeper, you can work as a permanent employee or freelancer. A proper financial data management system can provide valuable, actionable insights and prevent problems, such as skimming fraud. As a bookkeeper, you oversee the first steps of the accounting cycle, while an accountant typically handles the last two.

Forensic Accountant

Bookkeeping offers much lower barriers to entry, and the competition you face in the job search is less fierce. Accountants and bookkeepers work with numbers and financial data all day long. Bookkeepers often get paid hourly wages rather than annual salaries. The average wage for someone new to the business is $21.70 per hour. This is the equivalent of around $45,000 per year, assuming a 40-hour workweek. The advantage of hourly pay is you receive 1.5 times your average wage for hours worked more than 40 per week.

• The price of this certification includes the cost of enrollment, workbooks and the four-part national certification exam.
• You might need only some or all of these services that can be part of the job of a bookkeeper.
• When selecting a bookkeeping style, business owners have several options.
• Here are a few things to consider before obtaining a bookkeeping certification.