The terms are sometimes used interchangeably, and there can be some overlap in what they do, but there are distinct differences. Staying on top of your finances is a key part of being a successful small business owner. Your financial data must be current and accurate so you have the tools you need to make sound business decisions and implement healthy cash flow strategies. Accounting programs offer the most direct training for a career in bookkeeping. However, students majoring in other business- or math-related subjects can also qualify for these positions.
On salaried positions, this works out to a little over $19 an hour. Freelance bookkeepers can sometimes take on more business overhead and make more, especially those who freelance as a side business. Over time, there are also opportunities to raise rates with experience, or find stability as an in-house bookkeeper. Taking on an entry-level bookkeeping job can allow you to focus on learning the business without juggling the demands of another job.
Education for professionals
Come to kick the tires and join the community that is waiting for you. Professional bookkeeping is an excellent field for those who have a strong attention to detail and are willing to learn modern accounting software. Forty-one percent or more of professional bookkeepers work with a high school diploma or equivalent, not with advanced degrees or other certifications. This career is in easy access with strong earning potential, so receiving a professional bookkeeping certification is a fantastic way to stand out in a crowded field.
The modern business owner realises what they are good at and what they can outsource to a professional. Bookkeeping is a great example of this as most business owners don’t go into business to be a bookkeeper and their time is better spent developing their own business, whatever that may be. Our ideal candidate holds a Finance degree (preferably followed by accounting CPE courses) and is familiar https://www.bookstime.com/articles/what-is-a-professional-bookkeeper with accounting software packages, like FreshBooks, Kashoo and KashFlow. A bookkeeper not only records the numbers but can also interpret them. Managers who are responsible for business strategy or development do not always have the kind of understanding of ledgers and bank statements that bookkeepers do. Bookkeeping is neither simple bill paying nor strategic financial planning.
Second Example: The Customer Finally Pays in Cash
They also take initiative, prioritize and can regularly meet deadlines. Another essential part of being a good bookkeeper is being trustworthy and honest because you’re privy to so much important and confidential information. Know for certain you are using the right metrics in the right way.
- User reviews of professionals are based solely on objective criteria.
- You are a professional – a bookkeeping professional, so it’s time to act like it, show it and believe in yourself.
- 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.
- As such, it’s important to know whether you need a bookkeeper or an accountant to keep track of your affairs.
- The bookkeeper job description entails maintaining the general ledger and accounts, recording transactions, posting debits and credits, running payroll and creating invoices.
Bookkeepers.com’s Bookkeeper Launch, a course run by CPA Ben Robinson, reports many of its students earn $75 per hour in their freelance bookkeeping business. You can find bookkeepers operating at all sorts of price points, and delivering all sorts of results. But there are now some https://www.bookstime.com/ very interesting pricing models that allow you to hire a consultant without taking a huge financial risk. We recommend taking the time to find a bookkeeper you can trust a great deal. You don’t need any special training to be a bookkeeper—you don’t even need a bachelor’s degree.