what exactly does a bookkeeper do

A Bookkeeper is a service professional who helps business owners and companies keep track of the money they earn and spend. They prepare your accounts, document daily financial transactions and ensure compliance with applicable standards. Accountants use the records a bookkeeper provides and their own expertise to help build budgets, assess finances, and make business decisions. So, generally, an accountant’s role requires more education than a high school diploma. Accountants may have a bachelor’s degree in finance and training in bookkeeping roles. Of course, education depends on the individual or bookkeeping service you hire.

what exactly does a bookkeeper do

With the proper training and experience, you can become a certified public accountant or a chief financial officer. When applying for jobs, a candidate’s resume or CV should also include any relevant work experience. The BLS thinks that the number of jobs for clerks in bookkeeping, accounting, and auditing will drop by 3% by 2030. Despite this, the BLS estimates that there will be a total of 170,200 job openings annually across the board for bookkeepers, accountants, and auditors. If you are the type of person who finds that organizing files and numbers provides you with a sense of calm and satisfaction, then you would do well in the role of a bookkeeper. It is important to be able to organize and keep track of financial records, which is helpful if you like this kind of work.

How to Become a Bookkeeper – The Jobs, Skills, Salary & Career Paths of Bookkeepers

She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. For example, note which software you want a candidate to be familiar with–including general programs that your office uses. Let’s take a look at some of the typical responsibilities of a bookkeeper. If you’re organized and enjoy working with numbers, a job as a bookkeeper could be a good fit. According to the US Bureau of Labor Statistics (BLS), the median salary for bookkeepers in the US is $45,560 per year as of 2021 [1].

  • The bookkeeper will then record the purchase of the new car and any gains or losses incurred due to the change.
  • Bookkeepers can help with everything from budgeting to payroll, saving business owners time and money.
  • A bookkeeper’s role at a company varies by the size and nature of the business.
  • For any business that needs comprehensive financial support, an accountant is an ideal choice over a bookkeeper.
  • A bookkeeper may also help you run payroll, collect debts, generate invoices and make payments.
  • The options are endless for what a bookkeeper can do for you and your business, but we’ll list a few below to give you an idea.

Bookkeepers are not expected to have a four-year or five-year college degree in accounting. However, the bookkeeper must be able to work quickly and accurately. Today’s bookkeeper must be comfortable with accounting software such as QuickBooks and electronic worksheets. Being proficient with accounting software allows https://www.bookstime.com/articles/business-process-automation a bookkeeper to stand out from the others. For any business that needs comprehensive financial support, an accountant is an ideal choice over a bookkeeper. They can create financial statements that provide insight into a company’s financial success, allowing them to make well-informed decisions based on this data.

What are the legal steps to hire an employee like a bookkeeper?

Besides simply reviewing their LinkedIn or website, you could also find out more about how they operate their bookkeeping services during the interview process. While it might seem like an extra expense you can’t really afford, hiring a bookkeeper doesn’t have to strain your budget. In fact, it can save you a lot in costly errors, the time you could be performing other pressing tasks, and headaches. While payroll is usually overseen by the human resources role, sometimes bookkeepers will handle payroll. In some cases, they can help with everything from payroll-related forms and payments to processing payroll.

“Students can also take an internship as one of their major courses and complete their degree with real-life work experience that is part of their educational journey.” The differences in project management titles can be a result of the industry, the kind of project being done or a more specific skill set needed by the project manager. When looking for a job in project management, it can be good to expand your search for postings other than just “project manager.”

Bookkeeper job description

Fortunately, your tax preparer and bookkeeper or accountant should be aware of these. What’s better is that their assistance can also often save you money on small business tax preparation. The two foundational tasks in small business bookkeeping are data entry and bank reconciliation. Let’s walk through the core what exactly does a bookkeeper do duties, common additional duties, and advanced bookkeeping. Bookkeepers may also share some jobs with accountants, such as the preparation of annual financial reports and tax returns. Small business owners need to know about these common bookkeeping problems to set up systems that help them avoid making mistakes.

Let’s explore what bookkeepers do, examine some of the benefits of bookkeeping, and explore your options for using a bookkeeper. Though having a two-year or four-year degree isn’t always required to be hired as a bookkeeper, some companies may prefer candidates who do. Certifications aren’t necessary to become a bookkeeper but can signal to employers that you have the training and knowledge to meet industry standards. After you have a couple of years of experience, you can earn the Certified Bookkeeper designation from the American Institute of Professional Bookkeepers by passing a series of exams. It’s a skill used in both large companies and small businesses, and bookkeepers are needed in just about every business and industry.

Hiring templates

While a bookkeeper does not necessarily do your business tax returns for you, they can be instrumental in the process. Your bookkeeper or accountant will work with your tax preparer to ensure that all the information about your business’ finances is accurate. When it comes to filing your small business taxes, accurate reporting is essential to remain in compliance with the IRS and avoid hefty fines that can be harmful to your business’ financial stability. You might begin with a bachelor’s degree in business with the goal of being a project manager.