If you've always wanted to work in the bookkeeping profession, now is the time to consider making this your career. The profession has many advantages. It's a great profession that offers a high salary and a variety in job duties. The following article will give you an overview of the job duties, education requirements, and career advancement. Bookkeeping is a great career choice, regardless of whether you want to work in the accounting field or in an office setting.
Doing job
A bookkeeper's job entails recording financial transactions and posting them into accounts. They are responsible for maintaining the accounting records, including ledgers, of the organization. A bookkeeper's job description should emphasize organisational and time management skills. This job is a great step into more senior accounting roles and allows you to experience many different aspects. If you are interested in a career as a bookkeeper, a certificate program may be right for you.
Bookkeepers are usually paid an hourly rate, which is approximately $20 per hour or $40,000 annually if they work 40 hours per week. Overtime is a common work option for bookkeepers, giving them 1.5 times the average salary. Bookkeepers often work overtime during tax season. Education requirements vary by employer, and often depend on the company. Employers will prefer candidates with some postsecondary training, even though there is no standard for education requirements.
Salary
Bookkeeping has many benefits, including high job security. Bookkeeping jobs may not be glamorous but the pay can often be commensurate with the amount of work. This job requires you to work closely with raw data as well as a solid understanding of business. If they are hardworking, bookkeepers can rise to higher levels in accounting and business careers. The table below displays the hourly average wage for bookkeepers.
Bookkeeper salaries can be anywhere from $30,000-$60,000 per year in the United States. This will vary depending on the company and location as well as the experience of the candidates. The United States Bureau of Labor Statistics predicts that bookkeeping jobs will decrease by about 2% by 2022, but the Robert Half Salary Guide points out that demand will remain steady or increase in certain industries. According to the publication, the median total cash compensation for a bookkeeper is expected to be about $45,685 per year, which is about the same as the average pay for a computer engineer.
Education required
The profession of bookkeeper is versatile. Most bookkeepers have either a bachelor's, associate's, or high school diploma. This degree provides bookkeepers basic math, writing, as well as communication skills necessary for success in this career. They can also learn time and management skills. Bookkeepers work either as freelancers or in firms that require specific skills.
Employers are increasingly embracing certification. It not only shows that a bookkeeper holds higher-level skills than others, but it also indicates that the bookkeeper is dedicated to continuing education. Having earned a certification, such as the Certified Bookkeeper designation, shows that a bookkeeper is up-to-date with the latest software and processes. Bookkeepers with certifications have a higher marketability. Employers will also notice that the bookkeeper is dedicated to the job.
Career progression
There are many career opportunities in bookkeeping, starting as a freelancer and ending up as a certified public accountant. The benefits of this profession include flexible hours, regular office hours, holiday pay, and benefits. You have the option to choose to work for yourself, so that you can set your own rates. You have the option to train as an accountant, management accountant, or both if you prefer more flexibility.
An online course can prepare you to work as an entry-level accountant or for higher education in accounting and business administration. You will need to pass a certification exam during your training. This could be the AIPB Certification Exam or the NBA Uniform Bookkeeper Certification Examination. Your education and experience may allow you to apply for a position as a bookkeeping supervisor.
FAQ
What is the difference between accounting and bookkeeping?
Accounting studies financial transactions. Bookkeeping is the documentation of such transactions.
The two are related but separate activities.
Accounting deals primarily on numbers, while bookkeeping deals mostly with people.
To report on the financial health of an organization, bookkeepers must keep track of financial information.
They adjust entries in accounts payable, receivable, and payroll to ensure that all books are balanced.
Accountants examine financial statements in order to determine whether they conform with generally accepted accounting practices (GAAP).
If not, they may recommend changes to GAAP.
Bookskeepers record financial transactions in order to allow accountants to analyze it.
What does reconcile account mean?
Reconciliation is the process of comparing two sets numbers. The source set is called the “source,” while the reconciled set is called both.
Source consists of actual figures. The reconciled is the figure that should have been used.
For example, suppose someone owes $50 but you only get $50. You would subtract $50 from $100 to reconcile the situation.
This process ensures that there aren't any errors in the accounting system.
What is an Audit?
Audits are a review of financial statements. Auditors examine the financial statements of a company to verify that they are correct.
Auditors look for discrepancies between what was reported and what actually happened.
They also ensure that financial statements have been prepared correctly.
What is a Certified Public Accountant and how do they work?
Certified public accountant (C.P.A.). An accountant is someone who has special knowledge in 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.
What happens if the bank statement I have not reconciled is not received?
It's possible that you won't realize it until the end if your bank statement isn't in order.
You will have to repeat the whole process.
What are the differences between different bookkeeping systems?
There are three main types of bookkeeping systems: manual, computerized and hybrid.
Manual bookkeeping involves using pen and paper for records. This method demands constant attention to detail.
Computerized bookkeeping uses software programs to manage finances. It saves time and effort.
Hybrid bookkeeping combines both manual and computerized methods.
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)
- Employment of accountants and auditors is projected to grow four percent through 2029, according to the BLS—a rate of growth that is about average for all occupations nationwide.1 (rasmussen.edu)
- a little over 40% of accountants have earned a bachelor's degree. (yourfreecareertest.com)
- Given that over 40% of people in this career field have earned a bachelor's degree, we're listing a bachelor's degree in accounting as step one so you can be competitive in the job market. (yourfreecareertest.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)
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How To
Accounting The Best Way
Accounting refers to a series of processes and procedures that enable businesses to accurately track and record transactions. Accounting includes the recording of income and expenses, keeping track of sales revenue, expenditures, and preparing financial statements and analysing data.
It also includes reporting financial information to stakeholders like shareholders, lenders and investors, customers and customers, etc.
Accounting can take many forms. There are several ways to do accounting.
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Creating spreadsheets manually.
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Using software like Excel.
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Notes on paper for handwriting
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Utilizing computerized accounting software.
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Using online accounting services.
There are many ways to do accounting. Each method has its own advantages and drawbacks. The type of business you have and the needs of your company will determine which method you choose. Before you choose any method, it is important to weigh the pros and cons.
Accounting methods are not only more efficient, they can also be used for other reasons. Good books can prove your work if you are self-employed. Simple accounting is best for small businesses with little money. You might prefer to use complicated accounting methods if you have a large business that generates large amounts.