If you have ever wondered what is a bookkeeper? Perhaps you are wondering how to become one and if it is possible. You can get professional help if you want to start a bookkeeping career or simply earn more. You can read on to learn about the requirements for the job, as well as the salary. Regardless of your reasons, you'll be glad you took the time to learn about this profession.
Duties of the job
Bookkeepers are responsible for reconciling accounts and creating financial statements. You will need to have great organizational skills and confidentiality in order to perform your job well in a fast-paced organization. They may also be responsible for accounts payable and receivable management, as well as reconciling bank accounts and maintaining petty cash accounts. Other tasks include performing sales tax payments.
Bookkeepers need at least a bachelor’s in order to qualify. However, others may not require a college degree. Employers may offer entry-level jobs that require only a high school diploma. Bookkeepers may also be certified by organizations such as the Association of Certified Public Bookkeepers. Additional training might include finance and accounting. Business often ask for specific qualifications, such experience and relevant training, when posting job openings.
Education Required
A bachelor's or associate's degree is not necessary to be a bookkeeper. Most cases, a high-school education is sufficient. This type of degree provides aspiring bookkeepers with the basic math, writing, and communication skills that employers seek. They also gain valuable time management, organization and teamwork skills. For advancement, however, a bachelor's may be beneficial.
You'll need to be able to do basic math as a bookkeeper. A basic knowledge of spreadsheets is useful but you don’t need to know everything. You need to be able read software and manage your personal time. Most clients expect their bookkeepers to use accounting software to keep track of their accounts. Learning new software is a must. Most employers look for candidates with industry experience and certification.
Compensation
Based on the experience of the bookkeeper, compensation can vary greatly. Bookkeepers often work as independent contractors and are paid between $20 and $70 per hour. Bookkeepers with higher salaries are in the financial services and energy industries. Bookkeepers who work in companies with complex business models often earn higher salaries. The hourly wage for a bookkeeper should be in the $20-40 range.
Over the next few years, there will be a decline in national demand for bookkeepers. However, some states such as Arizona and Utah are expected to see an increase of up to 4% in the number bookkeepers within the next decade. Florida, Maryland, Nevada, on the other hand, will see growth of around 7.9%. The salary for bookkeepers is highest in San Francisco and Boston. You should study if you are interested in this career.
FAQ
What happens to my bank statement if it is not reconciled?
You might not realize the error until the end, if you haven't reconciled your bank statement.
This will force you to go over the entire process all over again.
What is the significance of bookkeeping and accounting
For any business, bookkeeping and accounting are crucial. They can help you keep track if all your transactions are recorded and what expenses were incurred.
These items will also ensure that you don't spend too much on unnecessary items.
It is important to know the profit margin from each sale. Also, you will need to know how much debt you owe other people.
You might consider raising your prices if you don't have the money to pay for them. Customers might be turned off if prices are raised too high.
If you have more inventory than you can use, it may be worth selling some.
You can reduce the number of products or services you use if you have less money.
All of these factors will impact your bottom line.
What should you expect when you hire an accountant?
Ask questions about experience, qualifications and references before hiring an accountant.
You need someone who is experienced in this type of work and can explain the steps.
Ask them if they have any knowledge or skills that might be useful to you.
Be sure to establish a good reputation within the community.
What's the difference between accounting & bookkeeping?
Accounting refers to the study of financial transactions. These transactions are recorded in bookkeeping.
These are two related activities, but separate.
Accounting deals primarily using numbers, while bookskeeping deals primarily dealing with people.
To report on the financial health of an organization, bookkeepers must keep track of financial information.
They adjust entries in accounts payable, receivable, and payroll to ensure that all books are balanced.
Accounting professionals analyze financial statements to assess whether they conform to generally accepted accounting procedures (GAAP).
If they don't, they might suggest changes to GAAP.
Accounting professionals can use the financial transactions that bookkeepers have kept to analyze them.
Statistics
- BooksTime makes sure your numbers are 100% accurate (bookstime.com)
- Given that over 40% of people in this career field have earned a bachelor's degree, we're listing a bachelor's degree in accounting as step one so you can be competitive in the job market. (yourfreecareertest.com)
- a little over 40% of accountants have earned a bachelor's degree. (yourfreecareertest.com)
- Given that over 40% of people in this career field have earned a bachelor's degree, we're listing a bachelor's degree in accounting as step one so you can be competitive in the job market. (yourfreecareertest.com)
- According to the BLS, accounting and auditing professionals reported a 2020 median annual salary of $73,560, which is nearly double that of the national average earnings for all workers.1 (rasmussen.edu)
External Links
How To
How to do bookkeeping
There are many different types of accounting software. Some cost money while others are free. Most accounting software has basic features, such as invoicing. The following is a brief overview of the most widely used types of accounting software.
Free Accounting Software: Most accounting software is free and available for personal use. While it might not be as functional as you would like (e.g. you cannot create reports), the software is usually very simple to use. Many free programs also allow you to download data directly into spreadsheets, making them useful if you want to analyze your business's numbers yourself.
Paid Accounting Software is for businesses with multiple employees. These accounts provide powerful tools for managing employee records and tracking sales and expenses. They also allow you to generate reports and automate processes. Although most paid programs require a minimum of one year to subscribe, there are many companies that offer subscriptions for as little as six months.
Cloud Accounting Software. Cloud accounting software allows for remote access to your files using any mobile device such as smartphones and tablets. This program has gained popularity due to the fact that it frees up space on your hard drive, reduces clutter, is easier to use remotely, and also makes work more efficient. There is no need to install any additional software. All that is required to access cloud storage services is an Internet connection.
Desktop Accounting Software: Desktop software works in a similar way to cloud accounting software. However, it runs locally on your own computer. Like cloud software, desktop software lets you access your files from anywhere, including through mobile devices. However, unlike cloud software, you must install the software on your computer before you can use it.
Mobile Accounting Software: Our mobile accounting software can be used on smartphones and tablets. These programs let you manage your finances while on the go. These programs are typically less functional than full-fledged desktop software, but they can still be useful for people who travel frequently or need to run errands.
Online Accounting Software - Online accounting software was created primarily to serve small businesses. It includes everything that a traditional desktop package does plus a few extra bells and whistles. One advantage of online software is that it requires no installation; simply log onto the site and start using the program. You'll also save money by not having to pay for local office costs.