Bookkeeping is an important position in any type of company, from small businesses to global corporations.
It includes complying data for financial reports, recording money transactions, and ensuring accuracy.
Bookkeepers use specific software that can include databases as well as spreadsheets.
They track financial transactions, record checks, receive cash payments and process payments as well.
In the following guide, we will explore the responsibilities and qualifications of a bookkeeper as well as education, working hours, and other significant aspects.
Article Table of Contents
What Does a Bookkeeper Do
A bookkeeper is engaged in the financial sector of business.
They track payments and expenses, liabilities, and capital.
Typically, they work in the financial department of a company, but they might be the entire department themselves.
Bookkeepers have advanced training, which usually includes a few years in college.
Bookkeepers deal with a variety of tasks, which can include the following:
- Enter payments and deposits into bookkeeping software.
- Review and record receivables and payables.
- Pay bills.
- Stay updated on the employee information for benefits.
- Track and create payroll checks.
- Reconcile credit card statements.
- Contact customers concerning past due accounts.
- Create and review monthly statements on profit and loss.
- Bank statements reconciliation.
- Creation and review of monthly reports on sales and inventory.
- Pay quarterly sales taxes.
- Pay estimated taxes to the IRS.
- Prepare materials on workers’ compensation, loan accounts, year-end capital assets, and insurances.
- Review and prepare annual reports for an accountant.
The job of a bookkeeper can expand as they interact with other departments.
They need business skills to make those interactions successful.
To understand the finances of the company, they need to understand the overall health of the company as well.
Bookkeepers should work with numbers and analyze data of the financial reports.
Unless you are great with numbers and proficient in math, you may have trouble fulfilling the duties of a bookkeeper.
Bookkeeping professionals use various accounting software and cloud services to prepare and store financial records.
They should know how all this technology works together.
Bookkeepers work with various departments, so they need good communication skills.
They will attend meetings, give presentations, and write emails.
How to Become a Bookkeeper
Bookkeepers usually need advanced education.
However, some skills can be learned on the job.
Additionally to the college courses, bookkeepers can acquire certifications.
Training and Qualifications
Bookkeepers need at least two years of post-secondary education.
Before hiring a bookkeeper, employers seek knowledge of bookkeeping and accounting.
With a few years of experience, a bookkeeper can acquire the certification issued by the American Institute of Professional Bookkeepers.
For this certification, you need to complete an examination that consists of four parts.
It is held at a Prometric Test Center across the country.
The test includes various topics such as depreciation, payroll, inventory and fraud prevention, bank reconciliation.
In rare instances, people can get hired right after high school for an entry-level position.
They will perform basic tasks such as payment data entry.
However, to perform all bookkeeping duties, you need some experience.
You can gain experience starting from an entry-level position moving to other aspects of the job to expand your knowledge.
Eventually, you can become a certified bookkeeper, as you have gained enough knowledge and experience.
For the most part of the year, bookkeepers have a standard business schedule such as 8-5.
But when the taxation season comes along, their schedule can become hectic.
Work at the end of the year may include some additional hours and overtime.
Bookkeepers can freelance or work from home for various employers.
In this case, they can set their own hours.
Depending on the number of clients they have, bookkeepers can work full- or part-time, in this case.
According to the Bureau of Labor Statistics, the employment of bookkeepers in the companies will drop by 8% by 2024.
However, with the development of small business, freelance and contract work will be in demand.
Instead of working for one company, bookkeepers can schedule their working day to complete tasks for several small businesses.
Bookkeepers enter and leave the field all the time.
So, despite the slow growth of employment, there are always openings available for bookkeepers and accountants.
If you wish to become a bookkeeper, you need advanced education.
Joining the field without training and experience is quite rare.
The position requires knowledge of accounting computer software and aptitude for numbers and math.
The growth is slow in the field, but there are always openings available as the small businesses grow.
As a bookkeeper, you can work on a contract or freelance basis and set up your schedule.