Do you wonder what it is to be a Bookkeeper? Perhaps you are wondering how to become one and if it is possible. Professional help is a good idea, regardless of whether you're looking for a career in bookkeeping or just want to make more money. Continue reading to find out more about the job, education requirements and the compensation. Regardless of your reasons, you'll be glad you took the time to learn about this profession.
Job duties
Bookkeepers are responsible for reconciling accounts and creating financial statements. Job duties in a fast-paced company require confidentiality, accuracy, and excellent organizational skills. A bookkeeper may be responsible for managing accounts payable and receivables, reconciling bank accounts, and maintaining petty cash. The bookkeeper might also be responsible for other tasks like performing sales tax payments.
While bookkeepers typically have at least a bachelor's degree, some may qualify without a college degree. Entry-level positions may be available by employers that do not require high school diplomas. Other qualifications may be required for bookkeepers, such as certifications through organizations like the Association of Certified Public Bookkeepers. Additional training may include accounting or finance. Business often ask for specific qualifications, such experience and relevant training, when posting job openings.
Education required
An associate's degree or bachelor's degree in bookkeeping is no longer required, as higher education costs continue to rise. Most cases, a high-school education is sufficient. This degree gives aspiring bookkeepers the basics of math, writing, communication and other skills they need to succeed in their job. Additionally, they can learn valuable skills in time management, teamwork, and organization. For advancement, however, a bachelor's may be beneficial.
As a bookkeeper, you'll need to be good at basic math. Although spreadsheet knowledge is helpful, you don't necessarily need to be an expert. You should be able to interpret figures from software and manage your time well. Accounting software is a must for clients who expect their bookkeepers. Also, you should be able to learn new software. Employers will seek out people with experience or certification in a particular industry.
Compensation
Based on the experience of the bookkeeper, compensation can vary greatly. Many bookkeepers work for themselves and charge $20 to $70 an hr. Bookkeepers with higher salaries are in the financial services and energy industries. Bookkeepers who work for businesses with more complex business models typically earn more. An hourly salary for a bookkeeper is between $20 and $40.
In the coming years, there is expected to be a decrease in the national demand for bookkeepers. However, bookkeeper openings in some states like Arizona, Utah, Delaware, and Texas are expected to grow by as much at 4% over ten years. Florida, Maryland, Nevada, and Nevada, however, are projected to experience growth of 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 should I do when hiring an accountant?
Ask questions about experience, qualifications and references before hiring an accountant.
You want someone who has done this before and knows what he/she is doing.
Ask them if you could benefit from their special skills and knowledge.
Look for people who are trustworthy in your community.
How do I know if my company requires an accountant?
When a company reaches a certain size, accountants are often hired. If a company has $10 million annual sales or more, it will need one.
However, not all companies need accountants. These include sole proprietorships, partnerships and corporations.
The size of a company doesn't count. Only what matters is whether or not the company uses accounting software.
If so, then the company should hire an accountant. And it won't.
How does an accountant do their job?
Accountants work with clients in order to get the best out of their money.
They work closely with professionals such as lawyers, bankers, auditors, and appraisers.
They also work with internal departments like human resources, marketing, and sales.
Balanced books are the responsibility of accountants.
They determine how much tax must be paid, and then collect it.
They also prepare financial statement that shows how the company is performing.
Why is reconciliation important
It's very important because you never know when mistakes happen. Mistakes include incorrect entries, missing entries, duplicate entries, etc.
These problems can have serious consequences such as inaccurate financial statements, missed deadlines and overspending.
What is the significance of bookkeeping and accounting
Accounting and bookkeeping are essential for every business. They help you keep track of all your transactions and expenses.
They also make it easier to save money on unnecessary purchases.
You need to know how much profit you've made from each sale. You'll also need to know what you owe people.
You may want to raise prices if there isn't enough money coming in. You might lose customers if you raise prices too much.
If you have more than you can use, you may want to sell off some of your inventory.
You can reduce the number of products or services you use if you have less money.
All these things will have an impact on your bottom-line.
What is the difference in accounting and bookkeeping?
Accounting studies financial transactions. Bookkeeping is the recording of those transactions.
They are both related, but different activities.
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 receivable and accounts payable to make sure that the books balance.
Accountants review financial statements to determine compliance with generally accepted Accounting Principles (GAAP).
If not, they may recommend changes to GAAP.
Accounting professionals can use the financial transactions that bookkeepers have kept to analyze them.
Statistics
- 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)
- Employment of accountants and auditors is projected to grow four percent through 2029, according to the BLS—a rate of growth that is about average for all occupations nationwide.1 (rasmussen.edu)
- 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)
- "Durham Technical Community College reported that the most difficult part of their job was not maintaining financial records, which accounted for 50 percent of their time. (kpmgspark.com)
External Links
How To
How to do bookkeeping
There are many kinds 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. Although the software may be limited in functionality, such as not being able to create your own reports, it is very easy to use. Many programs are free and allow you to save data to Excel spreadsheets. This is useful if you need to analyze your own business numbers.
Paid accounting software: Paid accounts can be used by businesses with multiple employees. These accounts offer powerful tools for managing employee records as well as tracking sales and expense, creating reports, and automating processes. The majority of paid programs require a minimum one-year subscription fee. However, some companies offer subscriptions that are less than six months.
Cloud Accounting Software: Cloud accounting software allows you to access your files anywhere online, using mobile devices such as smartphones and tablets. This program is becoming increasingly popular due to its ability to save space on your computer hard drives, reduce clutter, and make remote work easier. There is no need to install any additional software. All you need to access cloud storage 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. Desktop software can be accessed from any device, including mobile devices, and works similarly to cloud software. You will need to install the software on your PC before you can use it, however, unlike cloud software.
Mobile Accounting Software: Mobile accounting software is specifically designed to run on small devices like smartphones and tablets. These apps allow you to manage your finances on the move. They have fewer functions that full-fledged desktop apps, but they're still extremely useful for people who travel often or run errands.
Online Accounting Software is specifically designed for small businesses. It includes everything that a traditional desktop package does plus a few extra bells and whistles. Online software does not need to be installed. Just log in and you can start using it. You'll also save money by not having to pay for local office costs.