Important Skills for Bookkeeping Jobs

I didn’t put that directly into the budget because it is more of a deduction than an expense. You already have your home, so you’re not paying for the office each month directly. Bookkeeping doesn’t require certification to practice, meaning you can teach yourself and start right away if you’re confident. However, more knowledge is always an asset, and a bookkeeping certificate can make your resume look more attractive, potentially helping you to gain clients. These exams test your knowledge of analyzing business transactions, payroll taxes, financial statements, and more.

If a bookkeeper is an accountant, they may charge $150 per hour or more. They are responsible for consolidating accounts’ books, following up on past-due payments and billing reminders, processing payments for suppliers, and even processing payroll. For basic financial tasks, it’s usually better to use a bookkeeper than an accountant, since the former charges a cheaper hourly rate. A bookkeeper handles financial administrative tasks related to preparing your accounts and keeping a record of your daily financial transactions.

Resources for Your Growing Business

If you are proficient and comfortable using mathematics and computing figures, plus punctual, organized, and detail-oriented, it is not hard to learn how to be a bookkeeper. Of course, a background in accounting practices will help you ride out a learning curve as a new bookkeeper. As a financial auditor, you may work as an external or internal auditor.

You could use your personal email at least at the beginning, but it is nice to separate business from personal at some point. Depending on what state you live in, the cost for a business license can vary. In Oregon, for example, it is $150 annually to file a business license, which budgets to $12.50 per month. I created my website on Wix, and it is $17 a month to host it there, so that’s what I’m budgeting for this example. You can hire it out and have someone build it for you or host it for you, so the budget may look slightly different based on what you prefer to do.

It’s a profession that requires meticulous records and extreme attention to detail—because accuracy matters. For example, accurate records are essential for tax preparation and assessment of the performance of a business. In addition, business owners and organizations depend upon accurate bookkeeping as a basis for their decision-making. As well as being comfortable with numbers, organizational skills are particularly important for people in this role. Bookkeeping can equip you with valuable accounting skills and experience. You’ll gain experience using a general ledger, managing accounts payable and receivable, creating and managing data in spreadsheets and invoicing and accounting software.

• Accountants are expected to have a Bachelor’s degree at a minimum – whereas bookkeepers don’t even need a college degree.
• Fifty states plus the District of Columbia require accountants to earn 150 credit hours of college education before taking the national four-part Uniform CPA exam.
• No, there is not any kind of formal degree required to get a job as a bookkeeper.
• They also track credits and debits and may even help put together complicated financial reports.
• You need to know your way around debits and credits, to say the least.

In the modern world, the assumption is that we use calculators to avoid the tedious process of working out calculations by hand or mentally. The danger, of course, is that you may use a calculator without understanding what an answer means or how it relates to the numbers that have been used. In the beginning, a student will need a laptop or PC along with a reliable internet connection. That will get them started with the Bookkeeper Business Launch lessons. At this point, basically, any Chromebook, Mac/MacBook, Laptop, or PC will suffice. They both completed the training in 10 weeks, but it’s done at your own pace.

However, significant differences exist, like work conducted in each career and needed to be successful. The following analysis compares the education requirements, skills required, typical starting salaries, and job outlooks for accounting and bookkeepers. It’s a sizable list where candidates benefit from investing in courses that show a commitment to the profession. For example, bookkeepers should know how to work with existing and emerging software including Microsoft Excel, Payroll and Quickbooks.

Designed exclusively for small businesses, Freshbooks is used by millions of people all around the world. A bookkeeper may reconcile credit card and bank accounts, record bills as they are received for later payment, make sure payments are processed in a timely manner, and other things. Alternatively, learners who want to acquire bookkeeping skills quickly and for a specific purpose may find boot camps most useful. This could include someone who already holds a role in a business that needs to implement bookkeeping.

What skills, degrees, or qualifications do you need to be a bookkeeper?

Once you’ve learned how to become a bookkeeper and have two years of work experience, you can become a certified bookkeeper. Becoming a certified bookkeeper requires passing an exam to get a bookkeeping certificate. It’s completely possible to become a skilled and successful freelance bookkeeper without the need for a specialized degree or lengthy certification. While more education is always a bonus, many successful freelance bookkeepers start right out of secondary school. Also, make sure to update your LinkedIn profile to reflect your bookkeeping skills and desire for work. That way, you will show up in searches if someone looks for a bookkeeper in your area.

• The great part of this job is that you can learn how to do the work on the job.
• The course also offers lifetime access and evergreen course updates with a 30-day 100% money-back guarantee.
• Whether you want to specialize in payroll or help businesses prepare for quarterly taxes, you can likely charge clients more for your advanced expertise over time.
• Enrolling in a certificate or degree program offers an education-based option.
• To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available.

You can also pursue on-the-job training, building job skills through an internship or junior bookkeeping role. Some bookkeepers use their knowledge and experience to pursue accountant careers. Certified public accountants are one of the most popular such paths. To maintain CPB standing, bookkeepers must complete at least 24 continuing education hours each year.

You can then learn how to use multiple accounting software programs and work tools on the job. Internships can also provide ways for you to get your foot in the door with a specific organization. Although you don’t need a bachelor’s degree, it can make you more competitive. Only 12% of entry-level bookkeepers have a bachelor’s degree, so having one is an easy way to gain an advantage. Consider a bachelor’s degree in accounting, business administration, or finance.

Is Bookkeeping a Difficult Job?

Serine is a graduate of Journalism from one of the most prestigious universities. She has broad experience in public relations and marketing communications for the lifestyle, travel, tech, and banking industries. She is now a co-owner of a growing condiments business, a manager of her family’s pharmacy, and a full-time writer for SMB Compass. Some bookkeepers create a paper storing system where they organize receipts per category.

Taking a what does mm mean course can introduce learners to the principles used in the practice. An online course may be complementary to a larger study in accounting or to coursework on entrepreneurship. There are many reasons a learner could benefit from understanding bookkeeping skills. If you are an organized, conscientious person that is good with numbers, you may want to consider becoming a bookkeeper or even start your own bookkeeping business. Also, accountants require far more education and more difficult certification processes than bookkeepers do.

Learn the skills you need with training

I budgeted $25 a month on advertising for this bookkeeper, as those costs truly are relatively low and only optional expenses. Bookkeepers need quality internet connection, and once again, you’ll most likely be using it for both personal and business, so I estimated about $30 a month for business purposes. Business insurance is important to keep your personal assets out of reach if a client is unhappy and takes legal action against you for any reason. The nice thing about insurance is that it is relatively inexpensive, and it covers what you need. A bookkeeper’s expenses each month are relatively low, which is why this career is so appealing to many who are looking for a part-time side hustle. When I created the fixed rates for these clients, I wanted it to add up to roughly $50 an hour.

As a bookkeeper, unless you are trained as an accountant as well, you will want to hire an accountant to do your own taxes each year. You’ll be looking at roughly $300 a year, which, broken down, is $25 a month. This offering is attractive to clients so they don’t have to worry about keeping a subscription. Plus, as a bookkeeper, I get QuickBooks much cheaper for them than they would have otherwise. My ProAdvisor QuickBooks Online Plus subscription discount is $35 a month per client.

The financial statements are not a part of the bookkeeping process. One of the main reasons why it is possible to work remotely as a bookkeeper is that many accounting systems are now cloud-based. This means you can log on to a company’s accounting system remotely and update the required information from anywhere, anytime.

Work From Home Jobs

You can then communicate with your clients via email and telephone. If you live close to some of your clients, you can meet with them if you want, but it isn’t necessary. It’s also important to point out that it is possible to become a Certified Bookkeeper, although it isn’t necessary to have this professional designation to work as a bookkeeper.

Most people would be hard-pressed to describe the difference between an accountant and a bookkeeper. Becoming a certified bookkeeper enhances your credibility and increases your earning potential. Mostly every business could find value in having someone look after their financial books and records. In January 2023, the average bookkeeper in the United States earned an annual salary of $42,751. However, depending on a bookkeeper’s location, niche, and clients, they may command a higher salary, sometimes reaching $50,000 per year or above. Whether you’re looking for a bookkeeping job “near me” or you’d like to find a remote opportunity, there are several strategies and tips for finding a part-time or full-time bookkeeping job.

These professionals might hold a bachelor’s degree in accounting, business, economics or a closely related field. However, many entry-level roles require only a high school diploma or the equivalent. Qualifications can vary widely depending on the company or organization.

Keeping the books for a business can actually be a very stressful job. Find job opportunities and internships through job boards, your university’s networks, and by asking around. Learning how to become a bookkeeper is also a great career choice if you like the idea of working remotely.

Online job boards like FlexJobs and Upwork can be good to apply for remote bookkeeping jobs. So you want to quickly get to the point where you get one client. Because when you have just one client, you become a real, legitimate bookkeeping business.

You can start by learning some accounting basics and commonly used terms and tools in the industry. Get familiar with what income statements look like, how balance sheets can be read, and how to create effective cash flow statements. Many accounting and bookkeeping firms seek high school and college students to assist in accounts payable, accounts receivable, or as office administrators. You can learn bookkeeping at no cost on our website AccountingCoach.com. In addition to an explanation of each of the 30 topics you will also find quiz questions with answers, puzzles, and Q&A.

Bookkeeping attracts finance-oriented people with strong attention to detail and solid math skills. James M. Tobin is a writer, researcher, and editor specializing in student reference and academic research materials related to technology, business, finance, law, and the humanities. He began his professional career in editorial services in 2001 and… The more your operations expand, the more your bookkeeping will grow along with it to chart the most important metrics and figures involved in its operations.