Do you like the world of numbers and finance? Learning how to become a bookkeeper might be your perfect career path. This blog will help you explore the vital steps to help you succeed in bookkeeping.
Whether starting from the start or looking to enhance your bookkeeping skills, our guide will give you the needed tools and courses. It’s time to know how you can have a rewarding career in this in-demand field.
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What Does A Bookkeeper Do?
Bookkeepers are vital for keeping a company’s financial health. They have to deal with keeping track of and managing financial transactions. Whether working with companies directly or through outsourced accounting services, bookkeepers take part in many tasks:
- Budgeting and cash flow reporting
- Processing payroll quickly and correctly
- Tracking and recording inventory for effective control
- Recording bills and paying invoices to maintain up-to-date accounts payable
- Sending invoices to clients for timely payment tracking
- Reconciling all Balance Sheet Accounts to ensure accuracy in financial statements
- Recording all transactions carefully for in-depth financial records
- Checking and updating the general ledger for accurate bookkeeping
- Using online banking services for streamlined financial operations
- Work with third-party apps for seamless revenue and payment tracking
- Adhering to accounting rules, policies, and processes
- Preparing detailed financial reports for owners and shareholders
Bookkeepers excel in handling numbers and financial data. Their utmost care and following accounting rules aid the overall fiscal accuracy of firms.
What Is An Average Salary Of A Bookkeeper?
One common question about this job: “How much does bookkeeping cost?“. In the U.S., the average hourly pay for a bookkeeper is $17,73. The pay ranges from $7,25 to $35,15.
Meanwhile, freelancers often set their hourly rates between $40-60. For those who work full-time with multiple clients, they can earn more. This rate is even higher than the average salaried bookkeeper’s annual income of $35-40,000.
It’s crucial to note that the cost of bookkeeping services can vary based on various factors. They are the complexity of the business, the scope of work required, and your skill level.
Therefore, you must research and compare rates from all service providers. This step ensures you find the best fit for your needs and budget. Knowing the cost of bookkeeping services will help you make the best choices for your business’s financial management.
How To Become A Bookkeeper?
If you are eager to learn to be a bookkeeper, there are two main paths you can choose from. You can apply for a salaried position with a company or start your freelance service.
Regardless of the path you want, there are some steps you need to follow to embark on this career journey:
1. Pursue A High School Degree
Unlike accountants, many bookkeepers typically hold a high school diploma or GED when needing a bookkeeping degree. A high school degree brings the foundational math, writing, and communication skills that meet bookkeeping requirements. It also offers a chance to improve skills required, such as time leading, setup, or teamwork.
While a college degree is not binding, many people apply for an Associate’s or Bachelor’s Degree in Business Administration or Accounting. They want to reach clients who have higher educational expectations.
Those degrees cover many subjects, such as financial mathematics, computer systems, economics, and business law. Moreover, students may opt for accounting software, managerial accounting, or auditing courses.
2. Acquire Bookkeeper Training
There are countless options when getting bookkeeping training. Many people kick start their journey by self-teaching accounting software such as QuickBooks. Take time to check out online courses, books, and seminars. They are good resources for gaining insights into practical finance and learning how to do bookkeeping.
Self-taught ones often learn the needed skills on the job. As a result, they can build their skills without formal training. Most employers can train entry-level bookkeepers in six months or less. That much time is enough to gain thorough knowledge and support suited to bookkeeping requirements.
For those seeking a more structured approach, joining an internship with local companies or accounting firms is a good idea. Internships give eager bookkeepers first-hand training in the new field of business finance. Moreover, you may watch and learn from seasoned financial experts.
To find internships, you can explore options through your college and expand your network. Besides, use online job boards related to bookkeeping training and expert improvement. These experiences will enhance your skills and help you have a successful career.
3. Apply For Positions
Knowing the process and steps involved is crucial if you ask how to become a bookkeeper. While bookkeeping certification is not always required, training is vital.
The next step to being a bookkeeper is to look for local or remote employment openings. Take your time to create a well-crafted resume. It must show your skills and outline any relevant experience. This resume will make you a qualified candidate.
Highlight your skills in accounting software, your grasp of personal and business finances, and your desire to learn. If you need more hands-on knowledge, you can show your strong work ethic and room for growth.
Additionally, make your resume match the specific demands of each position. Carefully review the job description and add relevant keywords to your resume or cover letter. These steps will aid you in creating a good impression with recruiters.
4. Become A Freelancer
What if you want to be a freelance bookkeeper? The first step you need is setting up a bookkeeping service.
Remember that potential clients highly value practical experience. Therefore, before shifting to freelancing, consider working for a year or two in a regular bookkeeping job with a local firm or accounting office. It will give you valuable industry knowledge and enhance your skills.
Once you feel confident in your experience and skills, you can search for local, remote, or virtual positions. It’s time to expand your network by contacting friends, family, and coworkers. You can ask if they know anyone needing a bookkeeper for their business.
Plus, upload your services in newspapers, online platforms, or local community centers. To attract clients better, show off your skills and prove that you have learned how to be a bookkeeper.
Choose a specific area, such as schools, charities, or F&B. It will make you a valuable asset to similar businesses. By showing your knowledge and skills, you may quickly target your marketing efforts and meet the unique bookkeeping needs of your clients.
See more: How To Start A Virtual Bookkeeping Business In 2023?
5. Consider Bookkeeping Certification
If you still need to get a bookkeeping degree, another option is to enhance your professional credentials in the field. Both salaried and freelance bookkeepers can greatly benefit from having a bookkeeping certification.
It would be best if you got approval from respected organizations. They are the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB). These approvals will boost your professional status and open doors to new chances.
An example of a Bookkeeper Certification
You must have worked as a full-time bookkeeper for over two years to earn the above elite certificates. Another way is to collect an equal number of part-time hours.
Moreover, you must pass an exam that proves your knowledge and skills. By completing the process, you commit to upholding a code of ethics. It ensures you adhere to the highest professional standards.
Otherwise, you may take the Uniform Bookkeeper Certification Exam. It is available online and leads to a Certified Public Bookkeeper license. This way gives another avenue for proving your ability in bookkeeping.
As stated above, certification is not required to pursue a successful career. However, it can boost your credibility and increase your chances of securing high-end clients.
Many employers prioritize certified candidates. They want to hire skilled and experienced experts who are committed to upholding industry standards. Consider getting a bookkeeping certification to stand out in the market and unlock a world of new chances.
6. Choose A Specific Type of Bookkeeping
Specializing in a specific type of bookkeeping can be a highly effective way to differentiate yourself and attract clients. Focus your expertise on a particular industry or niche. That’s how you can position yourself as a knowledgeable and sought-after bookkeeper.
The first step is to find your area of interest. Choose industries or niches that align with your skills, experience, and interests. It could be real estate, e-commerce, healthcare, or any other field you like.
Once you have found yours, invest time in earning knowledge. Besides, stay updated with industry rules, best practices, and specific accounting software commonly used in that field. It will enable you to hand-tailored solutions to your clients.
Besides, make your bookkeeping services meet clients’ specific needs. Be sure to gain expertise in industry-specific financial analysis, reporting, and compliance demands. As a result, you can address clients’ unique demands in your chosen field.
Networking within the industry is crucial for creating your presence and building a client base. Therefore, you must attend industry events, join mutual groups, and engage with relevant online communities. Build relationships with experts in your field, as they may refer clients to you or give valuable insights.
Market your specialization effectively to attract clients. Showcase your expertise in your marketing materials, website, and social media profiles. Portrait yourself as an expert in the field to capture the attention of potential clients.
Where Can You Get Bookkeeping Courses?
There are many sources where you can receive bookkeeper training. Here are some popular options:
- Local colleges and universities: Many colleges offer training courses as part of their teaching programs. You can enroll in those courses or get a bookkeeping degree for a more structured learning process.
- Online learning platforms: Numerous online platforms offer special courses and training programs. Visit sites such as Udemy, Coursera, and LinkedIn Learning. You can then access various lessons from anywhere at your own pace.
- Professional organizations: The American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB) will help you learn to be a bookkeeper.
- Vocational schools and career training centers: These centers offer specific courses and programs tailored to practical skills and real-world uses.
- Local business support centers: Some business support centers, hubs, or small business development centers may host courses or workshops to satisfy essential demands.
Remember to research and select reputable sources. You will have premium bookkeeping courses aligned with your learning objectives and career goals.
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Frequently Asked Questions
What qualifications do I need to be a bookkeeper?
You might need a high school diploma or GED to be a part of this job. While not always required, you can take time to get a bookkeeping certification. For example, the Certified Bookkeeper will make you stand out.
How do I start to become a bookkeeper?
If you’re fond of starting this career, there are a few key steps to follow:
- Enroll in courses or training programs.
- Get acquainted with accounting software.
- Earn practical experience through internships or entry-level tasks.
- Get bookkeeping certification.
- Build a strong resume highlighting your skills and experience.
- Start applying for bookkeeping jobs to launch your career.
Can I teach myself to be a bookkeeper?
Yes, teaching yourself how to become a bookkeeper is possible. You can get the skills and knowledge required via various online resources, books, and tutorials.
Follow guides and engage in practical tasks. That’s how you can gain the skills needed to be a good bookkeeper.
Can I make good money as a bookkeeper?
Yes, bookkeepers can make good money. The salary of one can vary based on different factors. They are location, experience, and the type of clients they work with.
However, they can potentially have a higher income rate with the right degree, skills, and experience.
You learned how to become a bookkeeper by following the methods mentioned above. Now, embark on a rewarding career in accounting and finance. From learning the needed skills and degrees to joining training courses, you can be a skillful bookkeeper.
Whether you work as a salaried staff or start a freelance business, the chances are plentiful. With a desire for continuous learning, you may reach your goal of being a successful bookkeeper.
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