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Almost every business — large and small — benefits from the services of a bookkeeper. While there aren’t specific companies that routinely hire bookkeeping candidates, almost any remote-friendly company will, at some point, have the need for a bookkeeper. For an entry-level bookkeeper, hourly rates hover at about $18.50 an hour. Keep in mind, this is for bookkeepers who work in the accounting department of a company or corporation. According to ZipRecruiter, as of July 2021, the average annual pay for a freelance bookkeeper in the United States is $55,094 a year.
Still, completing one or both of the licensing processes demonstrates that job applicants possess skills and competencies employers need. So, bookkeepers who can add “CPB” or “CB” after their names may be more competitive than other candidates. Most bookkeepers hold high school diplomas and have completed postsecondary courses in relevant subjects, like accounting. Having a bookkeeping business of your own affords you many opportunities.
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Bookkeeping is just one facet of doing business and keeping accurate financial records. With well-managed bookkeeping, your business can closely monitor its financial capabilities and journey toward heightened profits, breakthrough growth, and deserved success. If you’re interested in an analytical, business-minded career, becoming a bookkeeper (especially a virtual bookkeeper) might be the right choice. And with no requirements for special certification and education, there are almost no downsides to seeing if it’s a good fit. One organization to look into is The American Institute of Professional Bookkeepers.
That is, they don’t pay bills or deal with accounts payable or accounts receivable. Once you’ve figured out your ideal accounting method, start by creating a balance sheet, which you will use to record and track equity, liabilities, and assets. This step will allow you to do a cost-benefit analysis of your product or service to determine if the way you’re conducting business is resulting in profit or loss.
Access to detailed records of all transactions
Depending on the certificate or certification program you complete, you may be required to recertify regularly to keep your credential. Recertification can ensure that you have mastered the latest bookkeeping skills, techniques, approaches, and technologies. You can also sign up for additional courses in bookkeeping to explore specific skills.
- Find out more on bookkeeping accounting skills, how to earn accounting degrees and bookkeeping certifications, getting jobs, salary expectations, and more.
- Bookkeepers are needed across most industries and sectors to ensure efficient business operations.
- They enter data into spreadsheets and bookkeeping software, collect and organize bank statements, compile reports and identify discrepancies.
- For instance, the job outlook for accountants and auditors has a 6 percent growth rate from 2021 to 2031.
- The two totals must agree—which is not by chance—because under the double-entry rules, whenever there is a posting, the debits of the posting equal the credits of the posting.
- It also opens up the possibility of becoming a remote QuickBooks Live bookkeeper with Intuit.
The average annual salary of bookkeeping professionals in the US is $45,560 a year [7]. Technological changes are the apparent result of the projected drop, specifically software innovations like automated entry. Career prospects for bookkeepers are not necessarily on the decline but simply changing. BLS suggests that bookkeepers will likely https://www.bookstime.com/articles/notes-to-financial-statements move into a more analytical role rather than purely data entry as professionals reap the benefits of more efficient means to input data. To become a bookkeeper, pursue an educational pathway with your future career goals in mind. In this section, we’ll cover two primary bookkeeping certifications and two popular bookkeeping certificates.
Self-Employment and Freelance Opportunities
There’s no one-size-fits-all answer to efficient bookkeeping, but there are universal standards. The following four bookkeeping practices can help you stay on top of your business finances. As you can see, the steps of how to become a bookkeeper and creating your own virtual bookkeeping business are quite simple. Every bookkeeping skill you need to become a bookkeeper can be found in your home. Becoming a certified bookkeeper enhances your credibility and increases your earning potential. This content has been made available for informational purposes only.
Bookkeepers are needed across most industries and sectors to ensure efficient business operations. However, the Bureau of Labor Statistics (BLS) projects a 5% decline in employment for these professionals from 2021 to 2031. Even so, the U.S. economy should add more than 170,000 job openings for bookkeepers annually during that time frame. A bookkeeper can work in a permanent, in-house position within a company’s or organization’s accounting department. Alternatively, bookkeepers can work for smaller clients, including small businesses and self-employed individuals.
These don’t require you to go to school or gain any special training, but they may be skills you’ll need to develop over time. In January 2023, the average bookkeeper in the United States earned an annual salary of $42,751. However, depending on a bookkeeper’s location, niche, and clients, they may command a higher bookkeeping experience salary, sometimes reaching $50,000 per year or above. Financial institutions, investors, and the government need accurate bookkeeping accounting to make better lending and investing decisions. Bookkeeping accuracy and reliability are essential for businesses to succeed for staff, executives, customers, and partners.
