What Is Bookkeeping? Duties, Pay, and How to Become One

The size and scope of a business will determine whether the company needs a part-time bookkeeper, full-time specialist bookkeeper, or an entire accounting department. Department of Labor’s Occupational Handbook, some of the most in-demand accounting jobs include comptroller, accounting manager, senior tax accountant, and internal auditors. 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.

The expected job decline is primarily due to cloud computing and other software innovations automating bookkeeping tasks that a person would normally do. 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.

Bookkeeping vs. accounting

The downward trend mostly comes from small companies that use software programs to handle their bookkeeping. CareerExplorer rates accountants with an A- employability rating, meaning this career should provide great employment opportunities for the foreseeable future. Over the next 10 years, it is expected the US will need 145,700 accountants. That number is based on 139,900 additional accountants, and the retirement of 5,800 existing accountants. There are currently an estimated 1,397,700 accountants in the United States.

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. You can become a bookkeeper right out of high school if you prove you are good with numbers and have strong attention to detail.

What skills do you need to become a bookkeeper?

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Growing Field

Next, set aside a dedicated time either weekly or biweekly to review your bookkeeping, reconcile transactions and complete necessary data entry. Finally, you’ll want to decide how all receipts and documents will be stored. You can either keep hard copies or opt for electronic files by scanning paperwork. For this, you’ll need specialized skills and licensing to make sure you’re recognized as someone the business can trust. Once you get those chops, you’ll definitely be picked up by major companies.

Accountants help businesses understand the bigger picture of their financial situation. Bookkeepers can be certified in various financial platforms, such as QuickBooks, or via training programs. You can also choose to become a certified public bookkeeper to market yourself better as a bookkeeping professional. Unlike certified public accountants, bookkeepers don’t file tax returns or audit financial statements.

Bookkeepers are important professionals in today’s economic and financial fields. Every company, even a small one, requires bookkeeping to maintain is bookkeeping in demand a healthy financial position. A forensic accountant’s job is to investigate, audit, and prove the accuracy of financial documents and dealings.

Bookkeeping tasks provide the records necessary to understand a business’s finances as well as recognize any monetary issues that may need to be addressed. Proper planning and scheduling is key since staying on top of records on a weekly or monthly basis will provide a clear overview of an organization’s financial health. Many of the traditional methods and ways of recording accounting components and principles are becoming redundant due to artificial intelligence tools. However, this doesn’t mean that accounting and finance roles will be replaced by AI. In fact, they’re evolving and expected to grow more complex in the future.

She has also written extensively on parenting and current events for the website Scary Mommy. From University of Wisconsin–Madison, and she lives in the Chicago area with her family. You will likely want to establish a business banking account and credit card. This can help you keep your own business expenses organized and separate. If you plan to hire employees, such as an administrative assistant, you may also want to seek a small business loan.

It’s a skill used in both large companies and small businesses, and bookkeepers are needed in just about every business and industry. You want your business name to reflect you as a person and the type of services you provide. Your business name is the first thing that lets customers, clients, competitors and others in the marketplace know about who you are and what you do. The demand for bookkeepers is also high, so you won’t be having problems getting a job or finding clients. Bookkeepers are in high demand due to a company not having the time, resources, or lack of knowledge to keep up with their data entry and receipts filing. If you want to work independently as an accountant, you will need to hold a certification that is equal to a bachelor’s degree.