How to Become a Bookkeeper

While bookkeepers typically handle financial data, accountants analyze and present financial data to businesses. This incredible earning potential is what makes bookkeeping a strong option to consider if you want to work part-time or full-time from home. Whether you want to make extra money or build a virtual bookkeeping business without working too many hours, bookkeeping could be the perfect choice for you. The American Institute of Professional Bookkeepers offers anyone the ability to become a Certified Bookkeeper by passing a certification exam. You must have at least two years of full-time work experience, or the equivalent in part-time or freelance bookkeeping work. Some people get their first bookkeeping role with a high school qualification, then learn everything else on the job. Most bookkeeping qualifications are at diploma or certificate level.

The American Institute of Professional Bookkeepers offers a similar credential. AIPB’s certified bookkeeper designation may also lead to enhanced professional opportunities.

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An enrolled agent is a tax professional authorized by the United States government. Their job is to advocate and assist taxpayers when they have issues with the Internal Revenue Service. To become one, you have to either have worked at the IRS or pass an EA examination. In most cases, private companies do not pay more than the Big Four for young accountants with little experience.

• Rarely does a bookkeeper work on one big project for an eight-hour shift; instead, a typical workday involves juggling five or six smaller jobs.
• But remember, this is how much you can normally make if a company employs you.
• These workers record financial details, update financial statements, and read over financial documents for accuracy.
• This can increase with additional education, training, and experience.
• Consider a bachelor’s degree in accounting, business administration, or finance.

It is not like being a doctor or a lawyer where there is an state board or https://www.bookstime.com/ organization that forces you to comply with certain classes or certifications in order to do your work. An accounting clerk typically works directly beneath the company accountant, performing audits and similar financial transactions. They may also be tasked with producing financial reports for the accountant in an accurate and timely manner. A full 13% of bookkeepers work in the professional, scientific, and technical services field, and the fields of retail, wholesale, and healthcare each boast 8% employment of all bookkeepers. According to Monster’s salary data, the median bookkeeper salary is $42,099 per year. However, that could range from $34,300 to $50,883 depending on your experience, educational background, and location.

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Organization is crucial to the success of a How to Become a Bookkeeper, so be sure to set up good habits early. Perhaps you are just beginning a career, or perhaps you are looking for a career change that allows more flexibility. If either is the case, bookkeeping is a path worth considering. How to pay different types of employees; federal and state wage-hour law. Use basic internal controls to prevent theft, embezzlement, or check and credit card fraud by employees, customers, or vendors. Apply the concepts of accrual accounting to transactions that span fiscal periods and trace the effect of accrual and deferral transactions. Get great content like this and the hottest jobs delivered to your inbox.

Hand-in-hand with the imperative for education, most employers won’t hire a new bookkeeper fresh out of high school or college. Most of them want to know you’ve acquired valuable skills that will help you pick up a full-time position with little trouble. Generally, this will take the form of an internship, co-op, or part-time work that will give you an in-depth look into how a company upholds new regulations and manages its records. According to the Bureau of Labor Statistics , entry-level bookkeepers don’t have a degree.

Bookkeeper Training Options

Tuition and demographic data is based on recently published National Center for Education Statistics. Our recommendations and editorial content are our opinions based on our research. Bookkeepers who are interested in switching jobs but do not have a college degree might consider becoming an EA after a stint with the IRS. This job doesn’t require a college degree, only five years of tax experience with the IRS. All EAs must have 72 hours of continuing education every 36 months.

Arnold Galiwango

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