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How to become A Bookkeeper

Finance

Systematic, accurate and verified records of daily transactions help businesses and other organisations manage their finances efficiently and effectively. Supported by accounting software and cloud-based bookkeeping, Bookkeepers, whether employed or hired, assist enterprises in maintaining their accounti... Continue Reading

Skills a career as a Bookkeeper requires: Accounting Finance Bookkeeping Mathematics Payroll View more skills
Bookkeeper salary
$42,359
USAUSA
£25,970
UKUK
Explore Career
  • Introduction - Bookkeeper
  • What does a Bookkeeper do?
  • Bookkeeper Work Environment
  • Skills for a Bookkeeper
  • Work Experience for a Bookkeeper
  • Recommended Qualifications for a Bookkeeper
  • Bookkeeper Career Path
  • Bookkeeper Professional Development
  • Learn More
  • Conclusion

Introduction - Bookkeeper

Systematic, accurate and verified records of daily transactions help businesses and other organisations manage their finances efficiently and effectively. Supported by accounting software and cloud-based bookkeeping, Bookkeepers, whether employed or hired, assist enterprises in maintaining their accounting ledgers, recording journal entries of payments received and invoices paid, and producing financial statements.

Similar Job Titles Job Description
  • Clerk
  • Recorder
  • Bookkeeping Clerk
  • Accounting Technician
  • Administrative Support Personnel
  • Office Personnel
  • Number Cruncher
  • Accounts Payable Clerk
  • Accounts Receivable Clerk
  • Payroll Clerk

 

What does a Bookkeeper do?

What are the typical responsibilities of a Bookkeeper?

A Bookkeeper would typically need to:

  • Track and manage the financial data of entities by creating, maintaining and monitoring financial records for their employers or clients, ensuring accuracy, attention to detail and compliance with legislation and accounting standards
  • Work within a company’s in-house accounting department or as part of an accounting firm’s team that manages accounts receivable and payable, journals and general ledgers and journals for several clients
  • Use bookkeeping software, spreadsheets and other databases to enter financial transactions, client payments and invoices into electronic databases and carry out period-end adjustments
  • Track debits (incoming money) and credits (outgoing money) for each account; balance accounts and manage budgets on a daily or weekly basis 
  • Gather and summarise information to produce reports that enable data analysis by accountants; compile financial reports and statements, including balance sheets, income statements and statements of cash flows
  • Draw up cheques and make bank deposits; gather, organise bank statements and reconcile bank accounts for the business every month 
  • Detect, calculate, report and reconcile any discrepancies in company records and reports and deviances from the budget; explore and identify likely reasons for the errors or differences in expected versus actual balance amounts
  • Carry out administrative duties for the accounting team as required; make copies of all receipts and critical documents for reference; file the necessary paperwork, including accounting documents and financial statements
  • Communicate with customers, suppliers and banks and maintain the petty cash fund
  • Help with or conduct payroll calculations and ensure that payments are made to employees within the given timeframe
  • Calculate preliminary tax entries; compute and record depreciation for bookkeeping and tax payments; report to internal or external supervising accountants in charge of filing taxes
  • Order or buy company supplies; calculate and record the cost of inventory; generate or pay invoices for credit card bills or purchase orders for inventory
  • Collaborate with accountants to manage VAT (value-added tax) returns where applicable
  • Prepare sales tax reports and worker’s compensation reports
  • Stay up to date with the latest bookkeeping and accounting software, procedures and legislation

Bookkeeper Work Environment

Bookkeepers are mostly office-based and located in-house within the accounts department as part of a team. They carry out most of their work seated at a computer, using accounting software. 


If you work for a Bookkeeping service provider and are hired by several firms or if you freelance and work for multiple firms, you will likely need to visit your clients’ places of business. However, you may also work from home or other locations if you have access to a laptop or computer. In addition to visiting clients, you may also need to commute to visit banks or clients’s suppliers. 

 

Bookkeeping typically continues at a steady pace though is often repetitious and requires careful attention to detail and accuracy. Bookkeepers may work alone but also collaborate with other departments' accountants, managers and auditing clerks as needed at times. Customer service skills are necessary, as you may need to answer questions asked by your colleagues, clients or customers about their accounts.

 

Work Schedule

Bookkeepers usually work 40 hours a week, 9 am to 5 pm, in full-time jobs, Monday to Friday, although the service industry may follow a different work schedule. Additionally, you may need to put in extended hours at the beginning of the fiscal year or to balance books when it ends, to process month-end accounts, and to meet deadlines during tax season, peak business periods and annual accounting audits.

 

Depending on the company's size, Bookkeepers may work part-time if required only to pay bills, reconcile income and deposits and maintain bank statements, particularly in small businesses. Larger businesses typically need full-time Bookkeepers. Freelancing, job sharing and temporary and short-term contracts are also options.

 

Some companies may offer flexible timings. Research suggests that flexible hours and generous telework policies appeal more than salary to the younger generation. There has been an incremental increase in employers willing to give promising employees a chance to adjust their schedules per the job demands.

 

Employers

Although Bookkeepers are required across industries, finding a new job might seem challenging. You can boost your job search by asking your network for referrals, contacting companies directly, using job search platforms, going to job fairs, leveraging social media, and inquiring at staffing agencies.

 

Bookkeepers are generally employed by:

  • Small to Medium-Sized Enterprises (SMEs)
  • Manufacturing & Engineering Firms
  • Retail Companies
  • Service Providers
  • Law Firms
  • Consultancies
  • Architectural & Construction Firms
  • Public Utilities
  • Public Health, Education & Social Service Agencies
  • Health Authorities
  • Healthcare Facilities
  • Transportation Companies
  • Educational Institutions
  • Governments
  • Accounting/Tax Services/Bookkeeping/Payroll Services Providers 
  • Banks & Insurance Companies
  • Building Societies
  • Charities & Non-Government Organisations
  • Media & Entertainment Companies
  • Hotels & Resorts

 

Unions / Professional Organizations

Professional associations and organisations, such as the Institute of Accountants and Bookkeepers (IAB) or the Institute of Certified Bookkeepers (ICB), are crucial for Bookkeepers interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation. 

 

Professional associations provide their members with various continuing education and networking opportunities, and mentorship services. Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

Workplace Challenges
  • The pressures of self-employment, which is an option growing in popularity but can lead to a lack of job stability, holiday pay and a structured pension plan
  • The constant need to pay attention to detail and be thorough and accurate; the fear of making any error as it can impact the account balance
  • Ensuring cybersecurity by defending business data from hacking as well as that of employees, clients, service providers and other stakeholders
  • The risk of being replaced by automation for routine tasks and by AI systems because of their increasing capacity to handle complicated accounting tasks 
  • Keeping current with legislative changes, such as those to do with taxation

 

Work Experience for a Bookkeeper

Any academic program that a potential Bookkeeper takes up typically requires a period of supervised experience, such as an internship. Apprenticeships are also an avenue to build work experience, earning and learning simultaneously. Bookkeepers will benefit from tasks outside the classroom that align perfectly with lessons inside it. One may hear countless stories and obtain valuable hands-on experience from more experienced professionals who can turn seemingly routine incidents into unique learning moments.

 

Volunteering as the treasurer of a university society can help you chalk up your bookkeeping experience. Summer internships, part-time work at an entry-level position or short-term paid/voluntary work in local companies or accountancy firms offer a taste of business finance, give valuable insight into how a company or institution operates, observe financial professionals, help build useful contacts and improve one’s prospects of getting a permanent job. Internships also help you acquire important skills, such as using accounting software programs and other work tools and procedures.

 

The experience may also help determine whether the public, private or voluntary sector is best suited to realise one’s ambitions. Your educational provider’s career service department can provide information about viable work placements, internships and voluntary work opportunities in diverse sectors. You may also source internships online or through a personal network.

 

Direct applications to companies or accounting firms may land you entry-level jobs that provide on-the-job training to help you gain work experience and progress in your field.

 

You may also move into the role of a Bookkeeper, having worked in the same company in an administrative role or as an accounting clerk or assistant, in which case you are familiar with the administrative or accounts department operations and have already built a rapport with your administrative or accounting team. 

 

Keep in mind that, in addition to fufililng other criteria, work experience may be an additional requirement in acquiring specific certifications and credentials, such as MAAT (which signifies full membership of AAT or the Association of Accounting Technicians and the right to use the designatory letters after your name).

 

Even while in high school, you can check with a teacher or counsellor about relevant work-based learning opportunities available in your school or community that can help you connect your school experiences with real-life work.

 

Join some groups, try some hobbies, or volunteer with an interesting organisation, so you can have fun while learning about yourself and be directed toward a future career. 

 

 

Read about the profession and interview or job shadow experts working in bookkeeping to prove your commitment to course providers and prospective employers.

Recommended Qualifications for a Bookkeeper

Although the educational requirements of a Bookkeeper’s job vary with its scope of responsibilities and the size and nature of the business, a high school diploma or equivalent is typically adequate to land entry-level jobs and learn the ropes through on-the-job training. Use your time in school to gain the basic math, writing, IT and communication abilities required. In addition, you may undertake self-directed learning through books, seminars or online or in-person tutorials or courses in bookkeeping, payroll management, practical finance or software accounting.

 

Some employers may enrol you into their internship or placement programs, which provide practical training, following which you may land a permanent job or opt to freelance. 

 

Given the growing use of electronic computing, some companies may expect candidates to have relevant experience or training or hold post-secondary certificates in manual and computerised bookkeeping, accounting or ICT. Employers also value candidates who have taken some college coursework in financial mathematics, computer systems, economics, business law, accounting software, managerial accounting or auditing since it provides aspiring Bookkeepers with the necessary skills and knowledge to succeed. Aspirants must understand business documents, such as receipts, purchase orders, bank and financial statements, invoices, and credit and sales slips.

 

Aspiring Bookkeepers may also earn an associate degree from community colleges, junior colleges, online universities, or certain four-year institutions. Or, depending on location, you may opt for a professional diploma in accounting, such as the one offered by the Association of Accounting Technicians (AAT). These qualifications earn you a competitive edge in the job market and help you transfer into a bachelor’s program. Apprenticeships are another pathway to enter the field of bookkeeping. 

 

A bachelor’s degree in accounting (typically covering auditing, public accounting and cost accounting) or business administration develops your skills beyond bookkeeping and can prove useful in career progression.

 

Take high school courses in mathematics, accounting, finance, business studies, economics or ICT to prepare for a college degree or other post-secondary qualifications or to work as a Bookkeeper in an entry-level role.

 

Remember that completing a particular academic course does not guarantee entry into the profession. Be that as it may, professional qualifications and transferable skills may open up more than one door.

 

 

Do your homework and look into all available options for education and employment before enrolling in a specific programme. Reliable sources that help you make an educated decision include associations and employers in your field.

Certifications, Licenses and Registration

Although neither licensing nor certification is essential for Bookkeepers, unlike other accounting professionals, certification may be a useful tool, especially for aspiring Bookkeepers without a college education. It helps you acquire necessary knowledge and demonstrate your competence in the relevant skill set. 

Most bookkeeping certifications indicate the professional skills and knowledge needed to carry out routine bookkeeping tasks, such as managing payroll and balancing accounts in compliance with accounting standards and procedures. Typically, work experience, training and passing an examination qualify you to be certified by professional bodies. Certification areas usually include bookkeeping, payroll management, and accounting software, such as QuickBooks. 

 

When acquired from an objective and reputed organisation, certification can also help you land high-end clients as a freelancer or stand out in a competitive job market, carry a significant salary premium of up to 18 per cent, increase your chances of advancement and become an independent consultant. Successful certification programs also protect public welfare by incorporating a Code of Ethics.

 

Some optional certifications that are accepted globally include the accounting credentials provided by the Association of Accounting Technicians (AAT) and the Certified Accounting Technician (CAT) credentials provided by the Association of Chartered Certified Accountants (ACCA). 

 

 

Bookkeepers must complete the required continuing education each year to maintain their designations.

Bookkeeper Career Path

Performance, experience, and the acquisition of professional qualifications drive career progression. Employees with consistently high levels of performance may be eligible for promotion every two to three years. 

 

Bookkeepers working in smaller organisations may achieve career progression by assuming greater responsibilities, such as reporting on business performance to senior management and recommending ways to boost company earnings and profits. 

 

With experience, further educational qualifications and credentials, Bookkeepers in larger organisations may advance to higher roles within the same enterprise, such as Senior Bookkeeper, Finance Officer, Tax Analyst, Payroll Manager and Accounting Manager. Some Bookkeepers with outstanding skills, knowledge, higher academic qualifications and certifications, drive and experience may even become Internal Auditors, Directors of Finance, Financial Controllers or Chief Financial Officers (CFO).

 

Equipped with entrepreneurial skills and having built business acumen, adequate experience and a solid network, motivated Bookkeepers may boost their careers by launching their own bookkeeping or accounting services firm or freelancing. Once you establish your reputation as a business owner or freelancer, you may work with a wide range of clients and determine your hours and rates.

 

The desire to accelerate career growth and personal development has an increasing number of millennials choosing to job hop and build a scattershot resume that showcases ambition, motivation, and the desire to learn a broad range of skills.

 

 

Studies prove that job hopping, earlier dismissed as “flaky” behaviour, can lead to greater job fulfilment. Employees searching for a positive culture and interesting work are willing to try out various roles and workplaces and learn valuable, transferable skills along the way.

Job Prospects

Candidates with the necessary mathematical skills, attention to detail, bookkeeping experience, training in accounting software, and formal qualifications in accounting or a related field supported by relevant credentials have the best job prospects.

Bookkeeper Professional Development

Continuing professional development (CPD) will help an active Bookkeeper build personal skills and proficiency through work-based learning, a professional activity, 

formal education, or self-directed learning. It allows you to continually upskill regardless of age, job, or level of knowledge.

 

On-the-job training, usually lasting up to about six months, is provided to most entry-level Bookkeepers, particularly those who are self-taught and have not acquired formal educational qualifications or training. Employers may also provide some classroom training in company-specific software, systems and procedures. Some firms assist employees in updating and improving their skills and knowledge through CPD. Employer assistance can involve paying college costs and providing study leave or a day off to attend a course.

 

If you choose to study for the globally-accepted AAT accounting qualifications, you may do so in different ways, such as by joining full-time or part-time programs at colleges or training institutes, through apprenticeship programs or via distance learning.

 

Acquiring higher credentials, such as Certified Public Accountant (CPA) or Chartered Accountant (CA) or a Master of Business Administration (MBA) degree can boost your career progression. Professional accounting organisations offer fast-track pathways and exemptions to candidates who seek advanced qualifications if they hold basic accounting credentials, such as those provided by the AAT. 

Bookkeepers can remain competitive by staying current with technology, which includes learning new accounting software to automate routine tasks and developing data analysis skills. If they freelance or run their business, they must also learn to promote their services through social media. 

 

Any certification you earn typically requires you to complete the requisite CPD or continuing education (CE) to maintain or renew it, thereby helping Bookkeepers stay updated with the latest technological tools, accounting procedures or legislative changes. CPD includes reading relevant articles, attending conferences and workshops, watching webinars and delivering training. Record your CPD activities to submit to the professional organisation you are a member of, typically using a provided template.

 

 

Make sure to find online and offline networking opportunities with professionals who can guide you towards new opportunities, advise you on career progression and support you in building your reputation and whom you can mentor as well.

Learn More

Bookkeeper vs Accountant vs CPA vs Auditor

 

Bookkeepers help businesses document transactions systematically, maintain and update financial records accurately, pay and issue invoices on time, and generate reports representing a company's financial standing. An accountant can replace a Bookkeeper, but entry-level Bookkeepers cannot fill the role of accountants. 

 

Accountants help businesses, organisations or governments make strategic decisions by using a Bookkeeper's records and their own expertise to formulate budgets, review, analyse and interpret financial data and performance. They may also supervise the work of Bookkeepers, checking their records and data for accuracy. Other responsibilities include cost savings and compliance with regulations. Some accountants may specialise in taxation. While the educational background of a Bookkeeper or accountant matches the role's responsibilities, accountants generally hold higher qualifications, are more trained and, with experience, may rise to senior management or executive positions. 

 

Certified Public Accountants (CPAs) are professionals who have met rigorous requirements and passed relevant examinations. Therefore, they carry out more complex functions than accountants. 

 

Auditors are specialised accountants who review a company’s financial statements and verify the accuracy of other accountants’ work. Internal auditors work from within, identifying accounting errors in time to prevent fines or investigations. External auditors also examine an organisation’s financial records and reports but are hired from outside and typically work for independent accounting firms. 

 

Thus, the role of a Bookkeeper is distinct from that of an accountant, CPA and auditor in its educational requirements, requisite skills and knowledge, and scope of responsibilities. Companies and recruiters must evaluate the financial needs of a business and hire personnel accordingly.

 

Some Tools That Bookkeepers Use

 

Accounting software, such as Quickbooks or Xero, is useful for Bookkeepers to generate and file financial reports and documents that adhere to industry standards. Bookkeepers collaborate with their colleagues via phone, email, fax and in-person meetings. They are frequently in charge of scanning paper bills or other paperwork, uploading it to their software or storing it on a hard drive.

 

Types Of Bookkeeping Systems

Single-entry bookkeeping, the most straightforward bookkeeping system, records each transaction as a single journal entry. As a cash-based bookkeeping method suited to businesses with few or relatively uncomplicated transactions, it tracks business expenses and cash sales as outgoing or incoming cash or as cash paid or received when a transaction occurs. Using a cash book, Bookkeepers begin with the existing cash balance for a particular period, add the income received and subtract the expenses incurred. At the end of the given period, all transactions are factored in to calculate the final balance. A cash book typically records the transaction date, a brief description, the transaction value, whether incoming (debit) or outgoing (credit), and the balance or a running total of the cash in hand. 

 

A double-entry bookkeeping system is used by businesses that conduct complex and capital transactions and have accounts payable/receivable. Under this system, each double-entry transaction or “journal entry” is posted in two columns, debit on the left and credit on the right. While carrying out journal entries, Bookkeepers must follow the accounting equation: Assets = Liabilities + Stockholders’ Equity. For instance, if an asset account increases, it is matched by an equivalent increase in a related liability or shareholder’s equity account or by an equal decrease in another asset account to keep the accounting equation balanced. 

 

Single-entry bookkeeping uses a cash register to record the income and expenses for transactions, while the double-entry system begins with entries in a journal, then in a ledger, leading to a trial balance and, eventually, the financial statements for an enterprise. 

 

Types of Bookkeepers

DIY: Some business owners wish to take charge of their bookkeeping responsibilities. However, it can prove time-consuming, and you must weigh the pros and cons of employing a Bookkeeper or hiring external services versus doing it all by yourself, even if you are organised and good with numbers. 

 

In-House Professionals: Depending on what the business needs in terms of bookkeeping and budgetary considerations, business owners may employ one or more in-house Bookkeepers in part- or full-time capacity or on a contractual basis. The tradeoff is often between saving time for other responsibilities and spending money on remunerating additional staff. 

 

Bookkeeping Software: A mid-way solution for many business owners is to find and use suitable bookkeeping software solutions, such as QuickBooks, and gain access to simple and professional tools to manage your bookkeeping yourself.

 

Remote or Virtual Bookkeepers: Another option is to hire professionals who render their expert bookkeeping services remotely or virtually. For instance, QuickBooks Live Bookkeeping puts you in touch with online Bookkeepers who help assess your finances, file taxes, or generate monthly reports.

 

Cloud-Based Bookkeeping

 

Desktop accounting is in common use by businesses to record and monitor daily transactions. What cloud-based accounting does is transfer the process and data to the cloud for enhanced security and flexibility of access. Desktop bookkeeping software limits operations to where a computer is physically installed. Furthermore, desktop storage may put a cap on applications and frequent software updates are typically required. Cloud accounting or bookkeeping software removes the need for a physical application that must be installed and allows multiple log-ins into the software from any device that is online. Real-time updates keep the software current, and programs with an open API (application programming interface) can integrate easily with third-party software.

 

Current Scenario

 

Technological advancements in bookkeeping software that automate various routine tasks are expected to reduce the demand for traditional Bookkeepers over the next few years. Instead of performing manual data entry, Bookkeepers may take on more analytical and advisory roles focusing on examining the books of their employers or clients and identifying potential areas in which to boost efficiency. However, despite the projected decline in employment, expected openings will likely result from the need to replace workers who change careers or leave the workforce for various reasons, such as retirement. 

 

Potential Pros & Cons of Freelancing vs Full-Time Employment

 

Freelancing Bookkeepers have more flexible work schedules and locations. They fully own the business and can select their projects and clients. However, they experience inconsistent work and cash flow, which means more responsibility, effort and risk.

 

On the other hand, full-time Bookkeepers have company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Yet, they may experience boredom due to a lack of flexibility, ownership, and variety.

 

 

When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you.

Conclusion

All the tasks that Bookkeepers perform, manually or electronically, add up to help diverse organisations stay financially disciplined, healthy and stable, whether large corporations, small businesses or nonprofits. Consistent, accurate and systematic documentation of transactions, report generation and other bookkeeping activities allow for performance analysis and transparency and moral uprightness in handling funds.

Advice from the Wise

Foster your mathematical skills from early on. Take bookkeeping and accounting courses and preferably earn formal qualifications to strengthen your CV. When you present your work to colleagues or clients, make sure you use terms they understand instead of bookkeeping and accounting jargon. Always act with integrity and trustworthiness when taking any decision or action and encourage openness and collaboration in your interactions with stakeholders.

Did you know?

The FBI has nearly 2,000 special agents working in bookkeeping and accounting, pointing to the significance of keeping organised records of transactions in varied settings

 

Introduction - Bookkeeper
What does a Bookkeeper do?

What do Bookkeepers do?

A Bookkeeper would typically need to:

  • Track and manage the financial data of entities by creating, maintaining and monitoring financial records for their employers or clients, ensuring accuracy, attention to detail and compliance with legislation and accounting standards
  • Work within a company’s in-house accounting department or as part of an accounting firm’s team that manages accounts receivable and payable, journals and general ledgers and journals for several clients
  • Use bookkeeping software, spreadsheets and other databases to enter financial transactions, client payments and invoices into electronic databases and carry out period-end adjustments
  • Track debits (incoming money) and credits (outgoing money) for each account; balance accounts and manage budgets on a daily or weekly basis 
  • Gather and summarise information to produce reports that enable data analysis by accountants; compile financial reports and statements, including balance sheets, income statements and statements of cash flows
  • Draw up cheques and make bank deposits; gather, organise bank statements and reconcile bank accounts for the business every month 
  • Detect, calculate, report and reconcile any discrepancies in company records and reports and deviances from the budget; explore and identify likely reasons for the errors or differences in expected versus actual balance amounts
  • Carry out administrative duties for the accounting team as required; make copies of all receipts and critical documents for reference; file the necessary paperwork, including accounting documents and financial statements
  • Communicate with customers, suppliers and banks and maintain the petty cash fund
  • Help with or conduct payroll calculations and ensure that payments are made to employees within the given timeframe
  • Calculate preliminary tax entries; compute and record depreciation for bookkeeping and tax payments; report to internal or external supervising accountants in charge of filing taxes
  • Order or buy company supplies; calculate and record the cost of inventory; generate or pay invoices for credit card bills or purchase orders for inventory
  • Collaborate with accountants to manage VAT (value-added tax) returns where applicable
  • Prepare sales tax reports and worker’s compensation reports
  • Stay up to date with the latest bookkeeping and accounting software, procedures and legislation
Bookkeeper Work Environment
Work Experience for a Bookkeeper
Recommended Qualifications for a Bookkeeper
Bookkeeper Career Path
Bookkeeper Professional Development
Learn More
Did you know?
Conclusion

Holland Codes, people in this career generally possess the following traits
  • R Realistic
  • I Investigative
  • A Artistic
  • S Social
  • E Enterprising
  • C Conventional
United Nations’ Sustainable Development Goals that this career profile addresses
Decent Work and Economic Growth Sustainable Cities and Communities Partnerships for the Goals
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