Bookkeeper Career Guide

What is a bookkeeper?

A bookkeeper is someone who handles the money details for a business. They track every transaction, like when the company buys something, makes a sale, gets money, or makes payments. Their main job is to make sure all these money movements are recorded clearly and correctly, which helps the company keep on top of its finances.

Duties and responsibilities

Bookkeepers take care of a company’s day-to-day money records. They keep an eye on things like purchases, sales, the money the company owes (accounts payable), and the money it’s supposed to get (accounts receivable), and payroll (money paid to employees). They use software to help manage all these numbers.

Besides logging daily transactions, bookkeepers balance bank statements, put together financial reports, and make sure all financial records follow the laws. They also deal with invoices, help plan the budget, and might help with taxes or audits at the end of the year. Sometimes, they also handle other office tasks like keeping track of financial files and letters.

Work environment

Bookkeepers work in all kinds of places because almost every company needs someone to manage their finances. They might work in small shops, big companies, charities, government offices, or even for themselves from home. The job is usually done in an office, but these days, working from home is becoming more common.

Typical work hours

Bookkeepers typically work regular business hours, Monday through Friday. But sometimes, they might need to work more, like during busy times when financial reports are due or at the end of the business year. If they freelance, they might have a more flexible schedule but could also have times when they’re really busy.

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How to become a bookkeeper

Becoming a bookkeeper is a great choice if you like working with numbers and keeping things organized. Here’s a step-by-step guide on how to get started:

Step 1: Finish high school

First things first, get your high school diploma or GED. This is what you need at a minimum to start working as a bookkeeper. It’s good to be strong in math and also have solid communication and organization skills.

Step 2: Think about more school (it’s optional)

You don’t always need more schooling beyond high school, but it can help you get better jobs. If you want to learn more, consider getting a degree or certificate in accounting or finance from a college. These programs teach you about handling money for businesses and might include classes on taxes and how to manage business finances.

Step 3: Build your skills

To be a successful bookkeeper, you should develop a variety of skills, like attention to detail and analytical thinking. You will also need to be proficient in different accounting software, such as QuickBooks, Sage, and Xero.

Step 4: Keep learning

To stay sharp and improve, consider online courses. Here are a couple that might interest you:

• Bookkeeping in QuickBooks Online: A course on Udemy that teaches you how to manage finances using QuickBooks.
• Bookkeeping Basics Explained: Learn all the essential bookkeeping terms and processes with real-world examples.
• Intuit Academy Bookkeeping Professional Certificate: Offered on Coursera, this course prepares you for bookkeeping jobs with lots of hands-on learning.

Step 5: Gain experience

Experience really matters. Try to get internships or part-time jobs in bookkeeping or similar fields. This hands-on practice builds your resume and shows employers what you can do.

Step 6: Consider getting certified (optional)

Getting a certification like the Certified Bookkeeper (CB) from the American Institute of Professional Bookkeepers or becoming a QuickBooks ProAdvisor can make you stand out. It’s not necessary, but it can help you get better job opportunities.

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How much do bookkeepers make?

The money bookkeepers make can change based on a few things. Generally, the more experience you have, the more money you can make. The type of business you work for can also affect your paycheck. Your education level and where you live can play a role in how much you earn as well.

Browse bookkeeper salary data by market

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Types of bookkeepers

Bookkeepers can specialize in different areas depending on what the business needs. Here’s a quick look at the types you might come across:

General bookkeeper

These are the all-around players in the bookkeeping world. They handle daily money matters like making sure invoices are sent out, tracking expenses, handling the payroll, and checking that bank statements add up. They keep everything neat and organized.

Accounts payable bookkeeper

These bookkeepers focus on the bills the business needs to pay. They keep track of what the company owes to suppliers, make sure payments are made on time, and deal with any questions or problems about the bills.

Accounts receivable bookkeeper

On the flip side, accounts receivable bookkeepers keep an eye on the money that should be coming into the business. They send out bills to customers, make sure payments are coming in, and chase down any late payments.

Payroll bookkeeper

Payroll bookkeepers make sure everyone gets paid the right amount at the right time. They work out wages based on how many hours people worked, handle the payments, and take care of deductions for taxes and benefits. They’re also the go-to person for employees who have questions about their paychecks.

Full-charge bookkeeper

Think of a full-charge bookkeeper as the boss of bookkeeping for smaller businesses. They do it all—from handling bills and payments to managing payroll and making sure the financial reports are in order. These bookkeepers usually have a lot of experience and take on more responsibilities than general bookkeepers.

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Top skills for bookkeepers

• Attention to detail: Every number matters, and even a small mistake can lead to big problems. They have to be sharp and make sure every financial transaction, big or small, is recorded exactly right.
• Proficiency in accounting software: Knowing how to use accounting software like QuickBooks or Sage is a must. Being good with these programs is a big plus in today’s tech-driven workplace.
• Strong math skills: Bookkeepers should be good with numbers. Even though software does a lot of the calculating, it’s important to understand the basics of math and financial concepts.
• Organizational skills: Their job involves keeping track of lots of financial documents. Being organized is crucial to manage all these documents well and find information quickly when needed.
• Integrity: They need to be very trustworthy. Any dishonesty can damage the company and is against the law.

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Bookkeeper career path

Starting out

Most begin in entry-level jobs like a bookkeeping clerk or accounting assistant. In these roles, you mostly do data entry and help more experienced bookkeepers and accountants. You might work on tasks like matching bank statements with records, processing payroll, and making invoices.

Moving up

Once you get some experience, you can become a full bookkeeper. Now, you’ll have more duties: you’ll keep up the general ledger, handle accounts payable and receivable, prepare financial reports, and make sure all financial records are correct and follow the rules.

Getting advanced

After several years, you could step up to a senior bookkeeper or supervisor role. At this level, you’re in charge of a team of bookkeepers and take care of all financial record-keeping for a business. You might also run audits (official checks of accounts), prepare major financial statements, and work closely with accountants and financial managers.

Beyond bookkeeping

As you grow in your career, you might decide to become an accountant or a financial manager, especially if you go back to school for an accounting degree or get a CPA (Certified Public Accountant) certification. These roles involve bigger responsibilities and a broader view of a company’s finances.

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Similar job titles

• Accounting Clerk
• Accounting Assistant
• Accounts Payable Clerk
• Accounts Receivable Clerk
• Accountant
• Certified Public Accountant
• Financial Analyst
• Financial Manager

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Bookkeeper position trends and outlook

The bookkeeping field is evolving rapidly, thanks to technology and changing business needs. Here’s what’s trending and what to expect in terms of job outlook:

Employment projections

Looking ahead, the job market for bookkeepers is shifting. According to the U.S. Bureau of Labor Statistics, jobs are expected to decrease by 5% through 2031. This decline is mainly due to automation and technology which are handling tasks that bookkeepers used to do. Those who are good with both accounting and technology and who keep up with new regulations will have the best job chances.

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Bookkeeper career tips

Embrace technology

The world of bookkeeping is always evolving, especially with new technology. Get comfortable with different software and apps that make bookkeeping more efficient. Always look for and learn about the latest tools in your field.

Maintain accuracy

Accuracy is super important in bookkeeping. A small mistake can cause big issues later. Always double-check your work, pay attention to the little details, and set up ways to reduce errors.

Stay current with regulations

Laws and financial rules can change often. Keep up with these changes to make sure your bookkeeping stays right and legal. Regular updates and training in regulatory compliance can help a lot.

Build a professional network

Networking can open up new opportunities and keep you in the loop about industry changes. To meet other professionals and access valuable resources, join groups like:

• American Institute of Professional Bookkeepers (AIPB)
• National Association of Certified Public Bookkeepers (NACPB)
• National Bookkeepers Association (NBA)

Understand your business

Knowing the business you work for inside and out can make you much more effective. Learn about what the business does, its financial needs, and its goals. This knowledge will help you provide useful financial insights.

Implement continuous learning

Bookkeeping doesn’t stand still, and neither should you. Stay on top of new techniques, technologies, and regulations. You might want to focus on:

• Advanced bookkeeping courses
• Tax preparation skills
• Certifications in accounting software
• Learning more about regulatory compliance

Maintain confidentiality

You’ll see a lot of private financial information. It’s very important to keep this info safe and private, following all privacy laws and your company’s rules.

Develop strong organizational skills

Being organized is a must in bookkeeping. You’ll deal with lots of data and documents. Good organization helps you keep everything in order, meet deadlines, and maintain accuracy.

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FAQs