Some people might think that bookkeeping is a tedious and mundane job, but the reality is that it is a significant career field. Bookkeepers are responsible for maintaining the financial records of a business, and this is a task that is critical to the success of any company. Without good bookkeeping practices, businesses would be unable to keep track of their expenses and revenue, making it difficult to make sound financial decisions. As a bookkeeper, you would have an essential role in any organization, and your skills would be in high demand.
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What Does a Bookkeeper Do?
A bookkeeper is responsible for keeping track of a company’s day-to-day financial transactions. Purchases, sales, payments, and receipts are examples of these. They have the critical administrative responsibility of generating data that reflects an organization’s actions.
A bookkeeper’s primary responsibilities include the following:
- Keeping track of financial transactions
- Debits and credits are recorded.
- Invoice creation
- Client cash, vouchers, and checks are received, documented, and handled.
- Accounts payable and receivable processing
- Payroll processing in a timely manner
- Creating the company’s financial transaction reports
- Performing financial audits and verifying that the books are in order.
- Working with an accounting team to develop and analyze reports, manage tax payments, and ensure compliance with other legal obligations.
Common Skills to Become a Bookkeeper?
Here are Given some common Skills to Become a Bookkeeper:
Organization: This is crucial for guaranteeing the accuracy of financial records and reports. A well-organized and dependable system will enable a bookkeeper to retrieve a record at any moment for any reason.
Precision and a keen eye for detail: A bookkeeper must have a strong eye for logging and filing data into a system precisely and accurately, in addition to being organized.
Ability to communicate: Bookkeepers will engage with people both inside and outside the company regularly, including clients and vendors. As a result, they should deliver their findings and discuss any difficulties efficiently.
Personality traits: This transferable skill is essential in any sector or industry, but it is vital for professionals like bookkeepers, who are frequently the face of a company or organization to clients.
What Education Do You Need to Become a Bookkeeper?
Bookkeepers typically need a high school diploma or equivalent. However, some employers may prefer to hire candidates who have completed some postsecondary education in accounting or bookkeeping. Many bookkeepers receive on-the-job training, which can last for several months. This training often includes bookkeeping software, accounts receivable management, and establishing accounting procedures.
Similar to many other professions, there are a variety of educational paths that stand out as the best ways to get started in this career. Bookkeepers typically need some level of education beyond high school – but how much varies by location and work environment.
Pros and Cons of Being a Bookkeeper
The pros and cons of being a bookkeeper are many and varied. On the plus side, bookkeepers have a steady income, usually, receive good benefits, and may work from home. On the negative side, bookkeepers often have to deal with demanding customers and tedious paperwork.
Here is a closer look at both sides of being a bookkeeper.
Pros of Being a Bookkeeper:
1) Steady pay: Bookkeepers earn an average salary of more than $38,000 per year. The median salary for bookkeepers is approximately $35,100 per year or $16.41 per hour. In addition to the steady paycheck, many companies also offer their employees an additional bonus during tax season when they have to file many documentation and records.
Great benefits: The majority of companies offer their bookkeepers health insurance, sick leave and paid vacation days, and a 401(k) retirement plan. Some also offer bonuses or incentives for excellent performance.
Work from home option: Many bookkeepers work from the comfort of their own homes because they are independent contractors or work for companies that don’t have offices. Working from home can be very convenient since you only need to set aside a special place for your office, and you can choose to dress casually on most days.
Chance to advance: Bookkeepers usually receive plenty of hands-on training when they first start in the profession, and their companies encourage them to take additional bookkeeping courses that may allow them to advance from a simple bookkeeper into a higher executive role or financial advisor.
Increase in demand: According to the Bureau of Labor Statistics, “the job outlook for bookkeeping, accounting, and auditing clerks is expected to be faster than average” . This is partly because bookkeeping tasks will become more accessible and faster with the advancement of technology, allowing companies to expand their operations more quickly.
Cons of Being a Bookkeeper:
Long hours: Bookkeepers often have hectic work schedules during tax season, especially if they’re working for a company that’s much larger than a typical business. It’s not unusual for them to work ten to twelve hours per day, especially if they have several large clients.
Little room for creativity: Bookkeepers usually handle all the paperwork involved with tracking inventory or sales, so there isn’t much room for creative thinking unless they are being asked to develop new ways to make the company more efficient.
Difficult customers: It’s part of a bookkeeper’s job to please their clients, whether they work at a big company where everyone has an assistant or at their own business that they run out of their home office. Bookkeepers often have to deal with demanding clients who may be rude on the phone or who may be upset with how much they have to pay for a service.
Tedious work: Sometimes, depending on the job, bookkeepers can spend all day doing paperwork or entering data into a computer system – especially if they don’t have an assistant to help them out. It’s also tough going from one company to another, mainly if their clients are located in different states or countries.
Bad reputation: Some people have a negative attitude toward bookkeepers because they see them only as an entry-level position, which is why it can be difficult to advance into a higher role with this type of work.
Are You Considering Becoming a Bookkeeper?
The profession is rewarding, but it’s also challenging. While you’ll get the chance to work in an environment where you can learn a lot about other areas of business operations, there are days when all your work will be very tedious and time-consuming. If you feel that this type of work would suit you, check out some online courses or find out if there are any bookkeeping schools in your area that you can attend.
A career as a bookkeeper is not for everyone – but if the pros outweigh the cons for you, this may be an excellent job choice!
What is the Job Outlook of Bookkeepers?
While it’s true that being a bookkeeper has become more accessible due to new technology developments, their role remains essentially unchanged. They are needed to keep track of the books and do the day-to-day bookkeeping chores. This is not a job that can be automated as it requires people who have a certain set of skills that only humans possess right now. Thus, as long as there is a business or company that needs its books kept or financial reports generated,
Bookkeeping is a rewarding but challenging profession. While you’ll get the chance to work in an environment where you can learn a lot about other areas of business operations, there are days when all your work will be very tedious and time-consuming. If you feel that this type of work would suit you, check out some online courses or find out if there are any bookkeeping schools in your area that you can attend. A career as a bookkeeper is not for everyone – but if the pros outweigh the cons for you, this may be an excellent job choice!
Top 10 Best Colleges to Study Bookkeeping in the USA
If you have made up your mind about having a career in bookkeeping or accounting, then it is essential that you choose the right educational institution. We have created a list of some of the most popular college programs for studying bookkeeping in the USA! There are plenty of great colleges that offer bookkeeping courses in the USA. Some of the best include:
1. The University of North Carolina at Chapel Hill
3. Brigham Young University
4. University of Illinois Urbana-Champaign
5. San Diego State University
8. Florida Institute of Technology
9. Troy State University, Montgomery Campus
10. Arizona State University West
There are plenty of other great institutions that offer bookkeeping courses around the USA! Visit their websites to find more information on each institution’s program and location offerings.
Is Bookkeeping a Good Career?
If you love working with numbers and have good math skills, but don’t necessarily want to be the financial manager of an organization, then perhaps a career as a bookkeeper is right for you. People often do not realize that much of the work in the finance office consists of mundane tasks such as updating account ledgers, reconciling accounts, and filling out paperwork. While these tasks are essential to the success of a business, they are often dull for people who like more analytical work.
To work as a bookkeeper, more education is not required; however, it can undoubtedly help with advancement opportunities in your career. Many organizations will prefer to hire people who have some kind of bookkeeping certification or a college degree in accounting.
What are the Steps to Becoming a Bookkeeper?
The steps to becoming a bookkeeper are as follows:
1. Get a degree in accounting or bookkeeping
A bachelor’s degree is the essential requirement for becoming an entry-level accountant, although some jobs require an MBA or graduate-level certification or equivalent experience. To qualify for more advanced positions with better pay, you might need to earn your CPA (certified public accountant) designation by passing the required exams.
2. Complete an internship or apprenticeship
An internship or apprenticeship is an excellent way to get on-the-job training and experience. Most bookkeepers learn their skills through on-the-job training, but formal education and certification can help advance your career.
3. Get certified
There are numerous certifications available to bookkeepers. If you do not have a college degree, the Certified Bookkeeper designation is an excellent way to demonstrate your competence and knowledge. You can also become a Certified Public Accountant (CPA), but that route usually requires more education, experience, and examination fees.
4. Start your own business or find a job
Once you’ve completed the previous steps, you might be ready to start your bookkeeping service. Or, if you prefer working for someone else, there are numerous entry-level accounting jobs in most industries.
How Much Do Bookkeepers Make?
How much do bookkeepers make? Well, it depends on where they work and what type of company they’re employed by. For instance, a bookkeeper working at a small business might earn around $35k per year. That number can go up to about $90k annually when you consider someone who works at a large corporation or public accounting firm. These salaries may not include benefits packages or bonuses either! The more experienced you are, and your current employer will likely impact how much you get paid.
As you can see, there are a few different career paths you could take as a bookkeeper. All of them have their unique benefits and drawbacks. It ultimately comes down to what you want in a job and your goals. Do you want to work for yourself? Or do you prefer the stability of working for someone else? No matter which path you choose, make sure to get the proper training and education so that you’re ready for whatever comes your way. And always stay up-to-date on the latest changes in the bookkeeping industry so that you can keep your skills sharp. We hope this article has helped give you a better idea of what bookkeeping is all about and what options are available to you.