What Does a Bookkeeper Do: Roles, Responsibilities, and Skills Explained

Krysten Godfrey Maddocks ’11G is a writer who covers K-12 and higher education topics, including policy and the role of digital technology in education. She spent almost a decade working in various marketing roles at an educational assessment company before launching a strategic marketing company. Maddocks earned a master’s degree in marketing from Southern New Hampshire University and a bachelor’s degree in English/ journalism from the University of what is a bookkeeper New Hampshire.

Accountant

Bookkeepers play an important role in allowing organizations to make good financial decisions using accurate information. These jobs usually require earning a bachelor’s degree in accounting or a related field. However, some bookkeepers with a lot of professional experience may be able to move directly into entry-level accounting roles without a degree. This promotion is usually a case-by-case scenario that depends on the employer. The level of pressure or stress experienced by a bookkeeper can vary depending on factors such as the size of the business, the complexity of the financial records, and the individual’s workload. Tight deadlines, regular financial reporting, and reconciling discrepancies can be demanding at times.

What Does a Bookkeeper Actually Do: Essential Tasks Explained

Organizations may offer full-time, part-time, and contract roles in this field. The skills you gain on the job and through credentials can also position you to move into bookkeeping supervisory roles or junior accountant roles. If you are working toward your bachelor’s degree in accounting, some employers may be willing to offer you an accounting job once you earn your degree. While bookkeepers and accountants both interact with a company’s financial data, they have different responsibilities and educational backgrounds. In its Payroll Fundamentals Training Course, you’ll learn payroll system procedures, gross pay computations and how to calculate payroll taxes and account for deductions and fringe benefits. You can also learn the skills you need to be a proficient bookkeeper through self-study, internships or experience, Stephens said.

Who Does a Bookkeeper Report To?

While bookkeepers used to keep track of this information in physical books, much of the process is now done using software. While bookkeeping how is sales tax calculated and accounting are closely related, they serve different functions within financial management. Bookkeepers focus on recording and organizing financial data, while accountants analyze this data to provide strategic insights and tax planning. The responsibilities of a bookkeeper include a fair bit of data entry and receipt wrangling.

Continuous Learning and Professional Development

• A bookkeeper and accountant are considered professional positions, requiring specialized education or rigorous on-the-job experience acquired over years.
• The process of verifying a business’s financial report with its bank account activity is called “reconciliation.” It’s an important step in making sure all your records are correct and up-to-date.
• You’ll be dealing with a lot of financial data and numbers in this career path.
• This experience strengthens a bookkeeper’s resume and builds confidence and competence in handling day-to-day financial tasks.

The lowest 10% of bookkeepers earn less than $34,600 a year, while the highest 10% make more than $72,660. They are responsible for preparing financial statements, analyzing and interpreting financial information, and providing financial guidance to management. Another way to get valuable bookkeeping experience and on-the-job training is through an internship. You can then learn how to use multiple accounting software programs and work tools on the job. Internships can also provide ways for you to get your foot in the door with a specific organization. Simply put, bookkeepers are responsible for all financial activity and oversight of a business.

How do I start a career in bookkeeping?

Bookkeepers meticulously record all financial transactions, including sales, purchases, payments, and receipts. This process ensures that every financial activity, no matter how small, is documented accurately and promptly. Proper recording helps maintain a clear financial history, essential for audits, tax filings, and financial analysis.

• Some bookkeepers, however, are actually involved in strategy development.
• Learn more about Bench, our mission, and the dedicated team behind your financial success.
• Bookkeeping is a part of the accounting process that involves recording financial transactions.
• It can take anywhere from four months to more than two years to become a certified bookkeeper, depending on which certification you pursue and how quickly you complete its requirements.
• I remember talking to the manager at my first job before they hired me.

Bookkeeper360 in your back pocket.

Some bookkeepers advance with the help of nationally recognized certifications. Bookkeeping can be challenging when you first start, but many organizations offer on-the-job training to make the transition easier. After becoming familiar with the accounts and software, the role should be relatively straightforward. Professional bookkeeping and accounting associations also offer effective job search help by providing networking opportunities, Car Dealership Accounting career tips and advice, and professional development workshops. Many bookkeepers specialize in industries like health care, retail, or construction, allowing them to offer tailored financial insights and services.

Save time with bookkeeper

By keeping your company’s financial records up-to-date and accurate, the bookkeeper helps you prepare for tax audits. Accurate financial records can also help you maintain compliance with financial and tax regulations. Not only does this reduce pressure on your business during the tax season, but it can also prevent costly fines from the tax authorities. A bookkeeper is also responsible for managing accounts payable, which involves tracking the amount your business owes to creditors, vendors, and suppliers. The role can involve processing invoices from vendors and suppliers, scheduling payments, and recording and updating payments made to suppliers and vendors in the organization’s accounting system.

Career Growth and Advancement Opportunities

For example, QuickBooks Live offers virtual roles where you can support small businesses from home. The Certified Bookkeeper (CB) program from the AIPB requires you to be a working bookkeeper or have at least one year of accounting education. The program involves either self-teaching workbooks or an instructor-led online program to prepare you for the CB exam. To earn the NACPB’s Certified Public Bookkeeper (CPB) certification, you must complete the Accounting Fundamentals course and pass the Uniform Bookkeeping Certification exam. To advance to a licensed CPB, you must complete required courses, gain professional experience, and agree to the CPB Professional Code of Conduct.

Cited projections are based on Bureau of Labor Statistics data, not on SNHU graduate outcomes, and do not guarantee actual salary or job growth. Learn about the best certificate programs to prepare for bookkeeper or accounting clerk careers. Becoming a bookkeeper takes focus, but it doesn’t require years of schooling. With the right skills, training, and real-world experience, you can build a flexible career that fits your life. From internships and freelance projects to virtual opportunities, there are many ways to get started and grow. Bookkeeping remains a valuable entry point into finance, but the career path is evolving.