Bookkeeper Job Description: What Is Bookkeeping?

Laura Chapman holds a Bachelor of Science in accounting and has worked in accounting, bookkeeping and taxation positions since 2012. She has written content for online publication since 2007, with earlier works focusing more in education, craft/hobby, parenting, pets, and cooking. Now she focuses on careers, personal financial matters, small business concerns, accounting and taxation. Laura has worked in a wide variety of industries throughout her working life, including retail sales, logistics, merchandising, food service quick-serve and casual dining, janitorial, and more. This experience has given her a great deal of insight to pull from when writing about business topics. While these careers are related, bookkeepers handle day-to-day data entry and record-keeping, while accountants use those records to manage tax filings and higher-level financial operations.

However, if you’re already a CPA or professional bookkeeper, then read on—you’re ready to start your bookkeeping business, and we’re ready to show you how. If you’re reading this, it means you see the opportunity, and you’ve already asked yourself the important questions every entrepreneur needs to answer. You want to help businesses by starting your own bookkeeping business.

As an independent https://1investing.in/ owner, you’ll have to learn how to do your freelancing taxes too. If you want to become a bookkeeper and also start a bookkeeping business, there are a few things to consider. In this guide, we’ll walk you through the steps needed to become a bookkeeper and start your own bookkeeping business. But as with any other enterprise, running your own bookkeeping business takes some key elements of preparation and knowledge. These certifications demonstrate a deep understanding of how to use particular bookkeeping software.

What are the certifications among bookkeeping requirements?

To become an accountant, they must earn a bachelor’s degree from an accredited college or university. There is a difference between an accountant and a certified public accountant . Although both can prepare your tax returns, a CPA is more knowledgeable about tax codes and can represent you if you get audited by the IRS. Staying on top of your finances is a key part of being a successful small business owner. Your financial data must be current and accurate so you have the tools you need to make sound business decisions and implement healthy cash flow strategies.

Many of these bookkeepers work from home, making their own hours. Seek out jobs that align well with qualities you need to be a successful accountant. They don’t necessarily need to be in the accounting field.

• To be an accountant, you generally need education requirements like a bachelor’s degree in accounting.
• The BLS notes that job growth for accountants should track fairly closely with the broader economy.
• These concepts can really be applied to the freelance sub-contractor, too.
• However, you can also work as an in-house remote bookkeeper at a non-bookkeeping business.
• In January 2023, the average bookkeeper in the United States earned an annual salary of $42,751.
• Freelance marketplaces like Upwork have dozens of businesses actively searching for freelance bookkeepers.

As a bookkeeper, you will get to encounter several projects. There’s no specific insurance you will need for a bookkeeping business. But as it’s a service-related business, you may go for professional liability insurance.

Remote bookkeeping qualifications include:

Processing payroll to pay employees accurately and on time, as well as ensuring compliance with payroll taxes. Generating the financial reports that management, investors, lenders and regulators use to make decisions. Processing payments to vendors/suppliers and invoicing customers/clients. We are looking to cover operating hours from 6AM to 6PM PST, Monday through Friday. And you will choose the set schedule you’d like to work within the QuickBooks Online regular business hours . It consists of a 2-week, self-led and instructor-led, online training with ongoing check-ins with managers.

However, all of the things we’ve mentioned above don’t necessarily mean you need to outsource to a professional. While it sounds like hard work, it’s quite straightforward when you know what you’re doing. It’s most commonly carried out at the end of a business’ financial year end with the figures featuring in reports such as profit and loss statements.

They need standard bookkeeping services which will basically help them manage their finances. You will refer to it over time to help you make decisions and work toward your goals. You can also use your business plan to organize your market research, define your target market, your marketing strategy, and how your business will generate regular cash flow. Gain 1-3 years of on-the-job work experience, earn a couple of certifications, and then venture out to start your own business. Bookkeepers need certification (which we’ll go over later) and a working knowledge of accounting software, best practices, laws, and, in some cases, the tax code.

Ready to Use Your Bookkeeper Job Description?

When your small business’s bookkeeping and accounting tasks are too much to handle by yourself, it’s time to hire help. The terms are sometimes used interchangeably, and there can be some overlap in what they do, but there are distinct differences. Remote bookkeeping provides you the opportunity to launch a brand new career and make money from home with no relevant experience. Businesses will always need bookkeepers, yet there are never enough people who are proficient in the job. Their educational requirements are reflected in their higher-level responsibilities. Accountants analyze and interpret the financial information that a bookkeeper provides — such as the financial statements — to help the company make decisions.

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. Simply put, bookkeepers are responsible for all financial activity and oversight of a business.

They conduct audits and forecast future business needs. We’ve listed some of the key differences when it comes to the requirements and job market for each. You may even choose to stay put at an office or travel around and visit your clients.

• That’s especially true for small businesses like freelancers and mom-and-pops.
• Each of the four exams leads to a standalone certification.
• These positions typically offer much lower pay than accounting jobs for more experienced candidates.
• They’re likely to be forgotten as soon as they’re heard or read.
• Remote bookkeepers — sometimes also referred to as “virtual bookkeepers” — work from home and use accounting software to handle the financial record keeping for businesses.

So sign up and get some great, free mentorship and access to lots of local debits and creditsing opportunities. For over 50 years, SCORE has served as America’s premier source of free business mentoring and education. Small Business Administration , SCORE has helped more than 11 million entrepreneurs through mentoring, workshops and educational resources since 1964. With SCORE, you are not alone on your business journey. Are you disciplined or resourceful enough to learn on your own?

Find out how you can post your next job with Monster for free today. Complies with federal, state, and local legal requirements by studying requirements; enforcing adherence to requirements; filing reports; advising management on needed actions. Prepares financial reports by collecting, analyzing, and summarizing account information and trends. Bookkeeping is a steady career that can lead to more advanced positions. Below we explore just a few of the benefits that come along with working as a bookkeeper.

Bookkeeping is an entry-level job, and generally, doesn’t require a degree or certification. You can start to bookkeep without any formal education or even experience. Unlike other professions, bookkeeping positions are entry-level. Do an online course, or work at some local bookkeeping firm, as the skills are necessary to land a position. There are several such jobs available online, often overlooked. Being an entry-level job, you can apply for such jobs online without any prior work experience.

Certified Internal Auditor is a certification offered to accountants who conduct internal audits. A Master of Public Administration is a degree in public affairs that prepares graduates to serve in executive positions in government and NGOs. In most cases, employers want to hire someone with a bachelor’s degree, and a master’s degree may help boost your earnings.

CFAs must also pass a challenging three-part exam that had a pass rate of only 39% in September 2021. The point here is that hiring a CFA means bringing highly advanced accounting knowledge to your business. A CPA is an accountant who has met their state’s requirements and passed the Uniform CPA Exam. They must also meet ongoing education requirements to maintain their accreditation. The rate a bookkeeper charges is based on various factors, including how much work you need done, the level of expertise you are seeking, and the state in which you do business. Bookkeepers aren’t required to be licensed or have certifications, but accreditation and licensing are available from the AIPB and NACPB.

Certifications can help establish your credibility and proficiency, and they can validate your bookkeeping knowledge and skills. Becoming certified can give you a competitive advantage when applying for jobs. These credentials signal that you have a verifiable educational background, along with the knowledge and skills required to perform well in a bookkeeping role. Many companies and organizations outsource financial support, including bookkeepers. If self-employment appeals to you, bookkeeping offers flexibility in determining a work schedule and building a clientele that best suits you. This option provides flexibility, allows professionals to pick their clients and often provides the chance to work from home or remotely.

The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners. Below, we have jotted down all the important steps to becoming a professional bookkeeper to make it easy for you to understand. Start with one platform and add more as time and budget allow. It takes time to become a great marketer on even a single social media platform, so be patient, and allow yourself to experiment with different types of content. You may not want to hire employees right away, but prepare yourself now, so the process is easier in the future. You can research how to hire employees and download or bookmark any necessary forms like the W-4 and W-9 through the U.S.