How to Become a Bookkeeper: A Step By Step Guide

Not sure where to start or which accounting service fits your needs? Our team is ready to learn about your business and guide you to the right solution. If you feel like you never have time to get your books updated and it’s taking up resources to do it yourself, a bookkeeper can help reduce the time you spend on financial tasks. You may also feel like it’s time to take a break from the grind and focus on other things that your business or clients need. In this article, you’ll learn more about what bookkeepers do, why they’re important to a business, and how much they earn.

Bookkeeping vs. accounting

You know what a bookkeeper does and what their day-to-day responsibilities look like. But how do these job duties translate beginning inventory definition as benefits for your business? A bookkeeper can help ensure your business finances are organized and lets you focus on running and growing your small business. Accountants also go through formal training to obtain a degree or certification, whereas bookkeepers do not.

Mostly every business could find value in having someone look after their financial books and records. If you want to become a bookkeeper and also start a bookkeeping business, there are a few things to consider. But as with any other enterprise, running your own bookkeeping business takes some key elements of preparation and knowledge. The CPB credential also requires a minimum of one year of bookkeeping experience, whereas the CB credential requires at least two years. First, start tracking how much time you spend per week on bookkeeping.

If you have a degree or a certification, check with your school or professional organization for tips and resources. They may have a job board or professional network that could lead to opportunities. Since bookkeepers have no mandatory education or experience requirements, you can take several pathways into the profession.

Determine whether you need full-time or part-time services

1. In that case, whether you’re a freelance bookkeeper with several clients or simply looking to handle the bookkeeping for your own business, FreshBooks can help.
2. And bookkeeping might not be something you enjoy or have time to understand.
3. Look into the industry-specific expertise they have to get a better idea.

Now that you understand how to become a bookkeeper, you are ready to get started on your new path. Whether you are already in the bookkeeping field or just starting out, this guide can help you determine your next steps. Many of the processes, policies, and procedures include detail-oriented tasks to ensure financial accuracy. You can take this exam from anywhere, as long as you have a reliable internet connection.

According to AICPA, CPAs earn 10%-15% more than the average starting salary for accountants. Bookkeepers manage an organization’s financial records by tracking transactions and producing reports for accountants and managers. These professionals use problem-solving, analytical, and detail-oriented skills while working closely with numbers and bookkeeping software.

These don’t require you to go to school or gain any special training, but they may be skills you’ll need to develop over time. In 2023, the average bookkeeper in the United States earned an annual salary of $43,748. However, depending on a bookkeeper’s location, niche, and clients, they may command a higher salary, sometimes reaching $50,000 per year or above.

Seek an internship or training placement.

While bookkeepers may not need any professional certifications or credentials, many employers prefer them and some even require them. While a bookkeeper’s duties may overlap with that of an accountant, bookkeepers do not need a college degree. However employers may prefer some college courses in accounting and finance or a bookkeeping certificate. This might be why, on average, business owners who hire bookkeepers see a 16% increase in profits.

What is bookkeeping?

An accountant is the one to help the business owner make sense of their numbers, generate financial documents, and plan for the upcoming tax period. Accountants are required to have advanced certification, while bookkeepers are not. Every job and person is different, but it usually takes about six months of on-the-job training to really get a grasp on the bookkeeping role. If you have a degree in accounting or a related discipline, you will probably pick it up quicker than if you don’t. Many accounting programs feature internships and practicums that help you build experience as you learn. One of the greatest boons of working with pro is receiving up-to-date financial statements you can use to plan business moves or prepare your taxes.