Ever wondered what a bookkeeper does? You might have wondered how you can become one, or whether it is necessary. You should seek professional assistance if you are looking to make a career out of bookkeeping or simply to earn more. Read on to learn more about the job, the education requirements, and compensation. Regardless of your reasons, you'll be glad you took the time to learn about this profession.
Duties of the job
Bookkeepers are responsible for reconciling accounts and creating financial statements. A bookkeeper's job requires accuracy, confidentiality, and exceptional organizational skills in a fast-paced environment. A bookkeeper may be responsible for managing accounts payable and receivables, reconciling bank accounts, and maintaining petty cash. Other tasks include performing sales tax payments.
While bookkeepers typically have at least a bachelor's degree, some may qualify without a college degree. Employers may offer entry-level jobs that require only a high school diploma. A bookkeeper may also have other qualifications, such as certifications from groups like the Association of Certified Public Bookkeepers. Accounting or finance training may be added. However, businesses often request specific qualifications, such as relevant experience, in job postings.
Education necessary
As the cost of higher education continues to rise, an associate's or bachelor's degree is not always necessary for a career as a bookkeeper. In many cases, a high school education is enough. A bookkeeper can earn this degree and gain the communication, math, and writing skills employers are looking for. It also helps them to improve their time management, organizational skills, and teamwork abilities. However, a bachelor’s degree could be useful for advancement.
You will need to know basic math in order to work as a bookkeeper. While spreadsheets are useful, you don’t have to be an expert. It's important that you can interpret the data in software and be able manage your time. Many clients expect that their bookkeepers will use accounting software to track their accounts. Learning new software is a must. Employers will seek out people with experience or certification in a particular industry.
Compensation
The amount of compensation a bookkeeper receives depends on their experience. Bookkeepers often work as independent contractors and are paid between $20 and $70 per hour. The energy industry, financial service, and large businesses are the highest-paying sectors for bookkeepers. Bookkeepers who work in companies with complex business models often earn higher salaries. An hourly salary for a bookkeeper is between $20 and $40.
Over the next few decades, the national demand of bookkeepers is expected decrease. The number of bookkeeper jobs in certain states like Arizona, Utah, Delaware and Nevada is expected to rise by as much as 4% over the next ten years. Florida, Maryland, Nevada and Nevada will experience growth of approximately 7.9%. Bookkeepers earn the highest salaries in San Francisco and Boston. If you want to pursue this career, you should go to school to obtain the necessary skills.
FAQ
How long does it take to become an accountant?
The CPA exam is necessary to become an accountant. Most people who desire to become accountants study approximately four years before they sit down for the exam.
After passing the exam, you must work at least three years as an associate to become a certified public accountant (CPA).
What does it mean to reconcile accounts?
Reconciliation involves comparing two sets of numbers. The source set is called the “source,” while the reconciled set is called both.
The source includes actual figures. The reconciled shows the figure that should be used.
You could, for example, subtract $50 from $100 if you owe $100 to someone.
This ensures there are no errors in the accounting system.
What are the types of bookkeeping software?
There are three main types: hybrid, computerized, and manual bookkeeping systems.
Manual bookkeeping uses pen and paper to keep track of records. This method requires constant attention.
Software programs are used for computerized bookkeeping to manage finances. The advantage is that it saves time and effort.
Hybrid bookkeeping combines both manual and computerized methods.
What is Certified Public Accountant?
A C.P.A. is a certified public accountant. A person who is certified in public accounting (C.P.A.) has specialized knowledge in the field of accounting. He/she has the ability to prepare tax returns, and assist businesses in making sound business decision.
He/She also keeps track of the company's cash flow and makes sure that the company is running smoothly.
Statistics
- According to the BLS, accounting and auditing professionals reported a 2020 median annual salary of $73,560, which is nearly double that of the national average earnings for all workers.1 (rasmussen.edu)
- In fact, a TD Bank survey polled over 500 U.S. small business owners discovered that bookkeeping is their most hated, with the next most hated task falling a whopping 24% behind. (kpmgspark.com)
- a little over 40% of accountants have earned a bachelor's degree. (yourfreecareertest.com)
- BooksTime makes sure your numbers are 100% accurate (bookstime.com)
- "Durham Technical Community College reported that the most difficult part of their job was not maintaining financial records, which accounted for 50 percent of their time. (kpmgspark.com)
External Links
How To
How to do Bookkeeping
There are many kinds of accounting software. There are many types of accounting software available today. Some are free while others cost money. However, they all offer basic features like invoicing and billing, inventory management as well as payroll processing, point of sale systems and financial reporting. Below is a short description of some common accounting packages.
Free Accounting Software - This free software is often offered to personal use. While it might not be as functional as you would like (e.g. you cannot create reports), the software is usually very simple to use. If you are interested in analyzing your business' numbers, many programs allow you to directly download data to spreadsheets.
Paid Accounting Software: Paid accounts are designed for businesses with multiple employees. These accounts offer powerful tools for managing employee records as well as tracking sales and expense, creating reports, and automating processes. Most paid programs require at least one year's subscription fee, although there are several companies offering subscriptions that last less than six months.
Cloud Accounting Software. Cloud accounting software allows for remote access to your files using any mobile device such as smartphones and tablets. This program has gained popularity due to the fact that it frees up space on your hard drive, reduces clutter, is easier to use remotely, and also makes work more efficient. It doesn't require you to install additional software. All you need is a reliable Internet connection and a device capable of accessing cloud storage services.
Desktop Accounting Software: Desktop accounting software is similar to cloud accounting software, except that it runs locally on your computer. Desktop software is similar to cloud software. You can access your files from anywhere you want, even through mobile devices. The only difference is that you will have to install the software first before you can access it.
Mobile Accounting Software: Our mobile accounting software can be used on smartphones and tablets. These programs make it easy to manage your finances wherever you are. Typically, they provide fewer functions than full-fledged desktop programs, but they're still valuable for people who spend a lot of time traveling or running errands.
Online Accounting Software: This software is primarily designed for small businesses. It offers all the functionality of a desktop program, plus some extra features. Online software does not need to be installed. Just log in and you can start using it. You can also save money and avoid the overheads of a local office.