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.

Turn business receipts into data & deductibles

As it was mentioned before, digital accounting isn’t an enemy of  bookkeepers, rather their reliable companion and help that allows them to grow professionally. There are various programs like Wave, Synder, ZipBooks, QuickBooks, Sunrise, that cater for various accounting needs. Having the ability to prepare an accurate financial picture of an enterprise and keep records organized is essential for being a bookkeeper.

Enroll in an undergraduate degree program.

These include the certified bookkeeper (CB) designation offered by the American Institute of Professional Bookkeepers. While both work with financial data, bookkeepers record and classify transactions, whereas accountants interpret, analyze, report, and summarize financial data. While both accountants and bookkeepers work with financial data, the scope of their work and the responsibilities they carry are quite different. When interviewing for a CPA, look for an accountant who understands tax law and accounting software and has good communication skills. They should understand your industry and the unique needs and requirements of small businesses. AIPB certification requires bookkeepers to have at least two years of full-time work experience and pass a national exam.

Check for errors in reports.

Bureau of Labor Statistics, in 2023, the national average hourly rate for bookkeepers was $22.81 and for accountants $38.41. In this guide, you’ll learn what differentiates a bookkeeper vs accountant, which bookkeeper vs accountant salary your business should hire, and when to employ them. Due to the additional education and training required to become an accountant, there are exclusive responsibilities that bookkeepers can’t perform.

• A bookkeeper is not an accountant, nor should they be considered an accountant.
• Regardless of the type of bookkeeping a company chooses, recording the day-to-day business financial transactions is an integral part of accounting.
• The U.S. Bureau of Labor Statistics (BLS) groups bookkeepers with accounting and auditing clerks in its job-related data.
• However, accountants go on for further training and education, which results in differences in their roles, earnings expectations and career growth.
• An advisory board of educators and other subject matter experts reviews and verifies our content to bring you trustworthy, up-to-date information.
• Of course, a background in accounting practices will help you ride out a learning curve as a new bookkeeper.

Common Roles in Bookkeeping

Bookkeeping accuracy and reliability are essential for businesses to succeed for staff, executives, customers, and partners. Bookkeepers are important professionals in today’s economic and financial fields. Every company, even a small one, requires bookkeeping to maintain a healthy financial position. As a bookkeeper, your https://www.bookstime.com/ income level may vary based on your location, experience and employer. If you work in a competitive job market, certification can give you a leg up when discussing salary potential with prospective employers. Accountants, on the other hand, take the data generated by bookkeepers and turn it into actionable insights.

• Bookkeepers will also need to continue to earn continuing education credits throughout their careers to maintain their certification.
• CPAs are more specialized in tax codes and can represent clients before the Internal Revenue Service in case of an audit.
• A bookkeeper usually performs these steps, however, an accountant may step in to complete these tasks, or oversee them as they’re completed by the bookkeeper.
• Accountants can work in a wide variety of sectors, including private industry, public accounting, government and nonprofits.
• As such, candidates should expect a more competitive landscape if applying for available openings.
• This individual usually holds an accounting degree and is registered as a certified public accountant (CPA).

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An accountant is likely to be employed at a larger company and will be able to delegate the processing of the high-volume routine transactions to accounting clerks. In turn, the accountant will deal with more complicated transactions, will review the financial statements, and will assist management in the planning and control of the organization. While there are certain similarities and overlaps between the two, there are distinctions that set these two roles apart. Bookkeepers don’t necessarily need higher education in order to work in their field while accountants can be more specialized in their training. 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 need to get a complete picture of your business’ situation when it comes to cash flow, debts, and expenses if you hope to meet your goals and continue to thrive.
• A proper financial data management system can provide valuable, actionable insights and prevent problems, such as skimming fraud.
• The bookkeeper should be able to answer all questions about daily finances and the status of payments.
• Yes, accountants and bookkeepers often work together to ensure accurate and timely financial management, combining transactional details with strategic financial advice.
• Typically, an accountant requires a bachelor’s degree in accounting or a related field.

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