How to Become a Bookkeeper: a Complete Guide

Are you interested in playing with numbers? In today’s blog, I’ll help you discover how to become a bookkeeper and unlock the path to financial success?.

Do you know a bookkeeper’s average salary is $50,000 per year??

Let me tell you that to become a bookkeeper, you need appropriate knowledge and skills in a particular field.

Deciding to become a bookkeeper? Consider pursuing a high school diploma or a high school education to meet the criteria for bookkeeping positions✅.

Bookkeeping is a high-paying skill. Suppose you are interested in the field of finance and building a career similar to an accountant. Pursuing a career in bookkeeping can be a rewarding career?.

Consider taking these steps to pursue a successful career as a bookkeeper?.

Questions you should ask yourself before starting your career in the field of bookkeeping

Remember, before jumping into a specific career. You should have a clear goal of what is to be achieved from it. I feel you should question yourself before starting a career as a bookkeeper.

I ensure that if you answer all of the questions mentioned below, you will have a clear vision of achieving a career in the bookkeeping field.

Are you sharp in mathematics and calculations, including strong basic arithmetic calculations?
Do you have a basic understanding of financial calculations? If not, do you have the ability to grasp the concept quickly?
Do you have a genuine interest in becoming a bookkeeper? Do you have the curiosity to learn the vast concepts associated with it?
Are you willing to learn about accounting software, excel, and other tools that are required to work as a bookkeeper?
Do you think you can handle a bunch of financial records and spot the errors and discrepancies?
Are you mentally prepared to provide your commitment towards becoming and working as a bookkeeper for the next 8-10 years?

Great! Now that you have answered all the questions mentioned above. You are one step closer to the path of becoming a bookkeeper.

Let me take you a little deeper to assist you in understanding the requirements for becoming a bookkeeper more efficiently.

Who is a Bookkeeper?

A bookkeeper is a professional or a person who is responsible for managing a systematic record of financial transactions for their clients, a business, or an organization. Bookkeepers maintain separate accounts to record incoming and outgoing payments of their clients.

According to the US Bureau of Labor Statistics, employment in sectors such as bookkeeping, accounting, and auditing is expected to decline by 6% till the year 2032. However, despite the declining employment, the labor statistics claim that there would be around 1,83,900 job openings for bookkeepers, accountants, and auditors.

A bookkeeper needs to ensure that financial records are accurate, complete, and up to date, which is essential for making informed business decisions and meeting regulatory requirements.
A bookkeeper aims to protect their client’s money and assure their clients by maintaining their financial health and stability.
A bookkeeper can earn in many ways, either by working as an employee or by starting a freelancing service✅.

Let us understand how much a bookkeeper can earn if he chooses any of the above options?.

Scope of Bookkeeper In the Future

However, the US Bureau Of Labor Statistics expects that there will be a decline of 6% in employment. There are a few factors that will drive the demand for bookkeepers in the future.

According to the World Economic Forum, employers were not able to find the talent needed. Bookkeepers working in the organizations consisted of those aged 50 and 55+. Due to this, there was a decline as they could not cope with modern methods and technology.

Currently, agencies are looking to hire young talents to fill the skills gap. Thus, according to me, there will be a rise in the demand for the role of a bookkeeper.

The statistics show that there are 9,991,047 bookkeepers employed in the USA. Out of which 84.6% are women, while 15.4% are men.

I have found a few top organizations that have huge respect in the bookkeeping field. You can stay updated about these organizations to find future opportunities.

•KPMG

•PwC

•Deloitte

•Ernst & Young

•Vertices

How much can a Bookkeeper earn??

A bookkeeper earns a salary that ranges from $35,000 to $50,000 a year?. However, it depends from organization to organization. Another aspect that determines your salary is your knowledge and skills to deal with multiple transactions.

Working as a freelancer can frequently make more money than a salaried person. A freelance bookkeeper can earn anywhere between $45,000 to $55,000 or even more than that if they have multiple clients ✅.

How to Become a Bookkeeper (Tips)

To become a bookkeeper, there are certain requirements you need to fulfill. Bookkeeper Bookkeeping requires proficiency in basic accounting principles and knowledge of financial transactions.

You need to learn relevant skills and understand the bookkeeping software. To become a profitable bookkeeper, here are a few tips that can help you in your journey?.

Acquire the necessary skills and get appropriate certifications

A bookkeeper needs to acquire a solid foundation in finance and accounting. A bookkeeper needs to learn about expenses, losses, financial transactions, etc.
A bookkeeper needs to improve by learning new software programs, relevant tools, and technologies commonly used in the industry.
However, getting some appropriate certifications can demonstrate your commitment and interest in the field and enhance your professional status.

Here are some certifications you should consider to become a bookkeeper?.

The National Association of Certified Public Bookkeepers (NACPB) and the American Institute of Professional Bookkeepers (AIPB) are the two organizations that offer bookkeeping certifications. The two certifications provided are the certified public bookkeeper (CPB) and the certified bookkeeper designation (CBD).

CPB Certification (PAID CERTIFICATION-$798)

The CPB certification is designed to provide bookkeeping knowledge and skills to individuals working or aspiring to work in the bookkeeping profession.
There are four sections, and candidates must pass all four sections to obtain the CPB certification.
To become a CPB, candidates must meet certain educational and experience requirements, pass the CPB Exam, and adhere to the NACPB’s Code of Professional Conduct.
It is essential to visit the official website of NACPB to get the latest updates.

CB Certification (PAID CERTIFICATION- $314)

The CB certification demonstrates a bookkeeper’s proficiency and commitment to professional standards.
This certification also has four sections, and an applicant should pass all of them to obtain the certification.
The certification can strengthen job prospects, boost earning potential, and provide credibility in the bookkeeping field.
CBs may also have access to networking opportunities and resources offered by the AIPB. It is advisable to visit the official AIPB website to stay updated with day-to-day information.

Skills Required to Become a Bookkeeper

Let me tell you that bookkeepers need to have efficient skills to get hired among the top organizations. I am mentioning a few skills that you should focus on improving to become a bookkeeper.

Should have the ability to deal with numbers daily and should have strong mathematical skills, including basic financial calculations.
Should understand financial statements to review financial records and ensure accuracy in calculations.
Must be proficient with using accounting software and financial tools.
Knowledge of basic accounting principles.
Should have effective communication skills.
Ability to understand basic tax principles and regulations and be updated on the latest accounting standards and tax laws.

In my opinion, you should view the Bookkeeping Basics Fundamentals course to start with understanding the basics of bookkeeping.

The course just costs $6.60 and gives you lifetime access.

Education Requirements To Be A Bookkeeper

In the field of finance, a degree is considered highly valuable. Employers expect bookkeepers to have a degree or at least a high school qualification.

Aspiring bookkeepers can pursue a degree related to finance, such as a bachelor’s degree in Accounting or a bachelor’s degree in business administration. Academic qualifications can increase your opportunity to get a job as a bookkeeper in the long run✅.

Years of Experience Required To Be A Bookkeeper

Having a formal education is not needed for an entry-level bookkeeper; however, the years of experience required to be a bookkeeper can vary depending on several factors, including the specific job requirements, the industry, and the employer’s preferences.

However, having relevant experience and knowledge in accounting and bookkeeping practices is highly beneficial.

Some employers may also consider candidates who have completed relevant coursework or have obtained certifications like Certified Bookkeeper (CB) or Certified Public Bookkeeper (CPB). Some may even prefer applicants who have at least one to three years of relevant experience in bookkeeping or a related field✅.

Responsibilities of a Bookkeeper

As a bookkeeper, there are multiple responsibilities you need to undertake. A bookkeeper needs to maintain accurate financial information for a business or their clients. The primary responsibility of a bookkeeper involves recording and organizing smooth transactions.

Along with that, a bookkeeper is also responsible for ensuring that the company’s or a client’s financial information is not disclosed and is up to date. Here are a few day-to-day responsibilities a bookkeeper needs to take care of?.

Responsible For Maintaining Financial Records

A bookkeeper is responsible for recording and maintaining accurate financial transactions and records.
It is crucial to maintain accurate records so there is transparency between clients and a business.
Maintaining financial records includes documenting sales, purchases, receipts, payments, and other financial activities.
It is necessary to collect all the data into accounting software or ledgers, ensuring accuracy and proper classification✅.

Recording and Verification of Accounts

Bookkeepers are responsible for recording and ensuring that all financial accounts, such as bank accounts, credit cards, and loans, are properly recorded.
It is necessary to verify the bank accounts and notice if there is any suspicious activity.
A bookkeeper verifies that the recorded transactions match the corresponding bank statements and other financial documents.
Recording and verifying the accounts provide a reliable foundation for financial decision-making and reporting✅.

Handling the accounts payable and receivable

One of the most essential roles of a bookkeeper is to handle accounts payable, which involves recording and processing invoices, making payments, and maintaining good connections with suppliers.
They also manage accounts receivable, which includes generating customer invoices, tracking payments, and following up on overdue payments.
It is the responsibility of the bookkeeper to allocate expenses to the correct general ledger accounts and cost centers✅.

Generating Financial Reports

It is important to understand the client’s financial performance.
A bookkeeper needs to ensure that the client’s financial health is stable by generating various financial reports to provide valuable insights.
Income statements, balance sheets, and cash flow statements are some of the important financial reports a bookkeeper needs to prepare.
These reports help in decision-making and maximizing the profits of a business.
In addition, it also helps to understand the financial position, performance, and trends of the organization✅.

Preparing Financial Analysis

The primary focus of a bookkeeper is recording and organizing financial data. To reveal some of the key points, provide a basic financial analysis.
A bookkeeper can assist in preparing budgets, analyzing financial trends, and identifying areas for cost savings or revenue growth.
Understanding the financial condition of a business can be done with the help of financial analysis.
It has made a great contribution by providing accurate and reliable financial data for analysis✅.

Building relationships with clients

Establishing trust, enhanced communication, and providing excellent service can help to build a strong relationship with clients.
It is crucial to have open and transparent communication channels with your clients. Understand your client’s needs.
Take the time to understand your client’s unique needs, preferences, and goals.
By consistently delivering quality service, being proactive, and demonstrating your expertise, you can establish long-term relationships built on trust and mutual success✅.

Tips to Improve Your Career As A Bookkeeper

Bookkeeping is a respected profession, and as you are aware of the responsibilities, it can be challenging to pursue a career as a bookkeeper. However, with knowledge and a lot of practice, a bookkeeper can gain a lot of potential to improve and grow in the finance field.

Here are some steps you should follow to improve your career as a bookkeeper?.

Continuously Learn and develop strong technical skills

You need to research and gain knowledge about the industry. With increased technology, there are several updates in the field of accounting software.
Learn new software and understand computer programs.
Develop technical skills in areas such as payroll, tax preparation, or financial analysis.
Understand how to use functions, formulas, and features that aid in data analysis, building financial models, and producing insightful reports✅.

Understanding the principles of accounting and building a strong foundation

A bookkeeper may face difficulties at times while calculating and evaluating the accounts report.
A bookkeeper needs to understand the principles of accounting and build a strong foundation to meet the field requirements.
It is essential to understand various types of accounting systems and be updated on the revised methods✅.

Focus on Minimizing the errors

Errors can result in causing chaos in the financial health of the organization. In the finance sector, you need to be extra conscious while recording and managing financial data.
Missing any information related to the financials of the organization can lead to errors.
Implement internal checks and balances and conduct periodic audits of financial records to minimize errors✅.

Showing willingness to grow

To grow as a bookkeeper, you need to be open to new opportunities, seek new learnings, and understand concepts, techniques, and technologies related to bookkeeping and accounting.
Enroll to get certifications and pursue suitable courses to enhance in the field.
With a genuine willingness to grow and improve as a bookkeeper, you not only enhance your career but also participate in the success of the organizations you work with✅.

Top Online Courses To Become A Bookkeeper in the United States

Pursuing a career in bookkeeping has been easier with enhanced technology and the internet world. There are several online courses available to become a bookkeeper. Here are a few relevant courses you can consider ?.

Introduction to Bookkeeping (FREE COURSE)

Even if you do not have any prior experience in the bookkeeping field or have zero knowledge about the accounting system, this course is designed to help you understand the fundamentals and basic concepts of accounting.
The course provides an understanding of various business transactions, documentation, and how these transactions are recorded in the accounting system.
If you want to start a business or want to pursue a career in bookkeeping, accounting, or finance, this course can be beneficial✅.

Bookkeeping Basics: Understanding the Fundamentals (PAID COURSE- $6.60)

The course gives a basic understanding of managing money in the business.
The course provides an overall view of bookkeeping and how bookkeeping can be essential for a business.
It covers all the basic topics, such as assets, liabilities, expenses, etc.
The course is known as a bestseller, and understanding the course can make you feel more confident about the subject.
After the completion of the course, there are further parts of this course that provide in-depth information about bookkeeping✅.

Accounting and Bookkeeping Masterclass (PAID COURSE- $6.60)

The course targets especially beginners or even someone new to the field of commerce.
The course starts with fundamentals like understanding the accounting system.
As the course gets further, it shares more complex accounting information.
The course is designed to provide practical concepts to students that involves preparing financial reports, balance sheet, reading financial statements, etc✅.

Where to find a Bookkeeper Job opportunity online?

There are several job opportunities online with internet access. Once you are qualified as a bookkeeper, you can start looking for job opportunities online. Several organizations are posting bookkeeping jobs online.

Whether you want to work as a fresher or an experienced bookkeeper who wants to seek a job, here are a few relevant bookkeeping job boards where you can find job opportunities online?.

Bookkeeping Job Boards

Utilize these job boards to find yourself a desired job. These job boards give you the freedom to search for jobs as per your location, profession, and company you want to work in. The jobs are listed and updated every day.
If you want to work as a freelancer, there are also several job opportunities offered by these job boards?.

Randstad

IndeedJobs

UpworkJobs

Online Networks With Professionals

Online networking can be another way of finding job opportunities online.
Leverage your profile and start networking to facilitate the exchange of financial data, communication, and collaboration with professionals.
There are a lot of hidden job opportunities when networking online.
You can explore groups and communities and find finance and accounting professionals to network and find opportunities✅.

Social Media

Social media can be effective for bookkeepers by offering them opportunities to network, build relationships, and find job opportunities.
Social media has been booming in the past couple of years.
Famous social media apps like LinkedIn and Instagram are go-to platforms for professional networking.
It is important to maintain a professional presence on such social media platforms.
Share valuable content and build genuine relationships that can provide helpful insights that can lead to networking opportunities and referrals for bookkeeping job opportunities✅.

Personal Tips from Me

Here are a few personal tips for you-

In my opinion, familiarize yourself with accounting standards and the latest methods and styles.
Ensure your fundamentals are strong.
Remember, keeping records organized, maintaining a systematic filing system, and accurately recording transactions for producing reliable financial information.
Process accurate financial statements and ensure minimum errors.
Get certified and continuously refine your skills, stay updated with industry training, and adapt to changes in technology and regulations to exceed as a bookkeeper✅.

Key takeaways

Still having doubts? Do not worry; feel free to drop a comment below, and my team will resolve them as soon as possible.

All the best for your journey?.