How to become a bookkeeper
Most startups don’t employ a dedicated bookkeeper to start, but a growing business needs bookkeepers to streamline financial operations and ensure financial statements are in order for external examination. There isn’t a set profit level when a bookkeeper is needed, but tax filing, higher profits, and a larger pool of employees might be reasons that necessitate hiring a bookkeeper.
What is bookkeeping?
Bookkeeping is a process that a company uses to keep a record of all its financial transactions. The name comes from creating and maintaining records in a book, although many bookkeepers now use spreadsheets and software to track incoming and outgoing monies.
What is a bookkeeper?
Bookkeepers create a comprehensive record of financial transactions. This allows companies to:
- spot errors quickly
- apply for loans or funding
- file taxes correctly
- look for opportunities to save money
In doing this, a company has a detailed overview of how they make and spend money.
Bookkeeping tasks
Bookkeepers organize their tasks according to time periods, typically based on a set daily, weekly, monthly, quarterly, and yearly financial process. These procedures include:
- reconciling invoices, payroll, expenses, taxes, company overhead, and one-off costs
- processing accounts receivable/payable
- checking figures and documents for accuracy
- assisting audits
- entering data and maintaining records
Difference between a bookkeeper vs. accountant
Generally, accountants are more involved in reports and analyses, as well as making recommendations to upper management. Bookkeepers focus more on the details of tracking and recording.
Bookkeeper
Focuses on details of tracking and recording
Does not require specialized degree or certification
Maintains financial records
Accountant
Generates financial statements and reports
Often requires a 4-year degree or additional certification
Advises business owners and company leaders
What is a full-charge bookkeeper?
A full-charge bookkeeper is someone who manages all of a business’s accounting needs. Usually, full-charge bookkeepers work in small- to medium-sized businesses and are the only ones responsible for all accounting duties.
How to become a bookkeeper in 3 steps
In deciding to become a bookkeeper, you’ll need to consider education, experience, and the skills required to meet the responsibilities of the job.
Step 1: Enroll in an undergraduate program
While you might be able to get a job as a bookkeeper with a high school diploma, many employers look for candidates with an associate degree in accounting or a related field.
Other students may opt for earning a bachelor’s degree that provides a strong foundation in general math, statistics, and economics. There isn’t a specific degree in bookkeeping, but the information and skills gained in a bachelor’s degree in accounting, finance, or business administration are ideal for advancing your bookkeeping career.
Step 2: Build experience and sharpen your skills
Prospective employers may ask for experience in a specific industry, which can be obtained through internships or a practicum.
Step 3: Consider bookkeeping certification
There is no specific licensing requirement for bookkeepers. However, there are bookkeeping certificates available that can help you get noticed by prospective employers.
You can become a certified bookkeeper(CB) through the American Institute of Professional Bookkeepers (AIPB). The institute offers courses to help you become a CB and continuing education programs to maintain your status.
How hard is it to become a bookkeeper?
Becoming a bookkeeper is relatively easy because it doesn’t require an advanced degree. Many bookkeepers learn through self-study, a certification program, or some college coursework. While excellent basic math skills are required, advanced skills like statistics and calculus are not.
Average bookkeeper salary
Salaries for bookkeepers depend on years of experience, levels of responsibility, and size of employer. See below for more detailed salary and career projection information.
Bookkeeping, Accounting, and Auditing Clerks salary information by state
When available we provide the latest and current state level salary information from the Bureau of Labor Statistics showing 10th, 50th, and 90th percentile earnings to provide the range of salary experienced by each career. Salary data is aggregated from the actual reported income of the US labor force, and is considered the most trustworthy data source for salary information.
When available we provide the latest and current state level salary information from the Bureau of Labor Statistics showing 10th, 50th, and 90th percentile earnings to provide the range of salary experienced by each career. Salary data is aggregated from the actual reported income of the US labor force, and is considered the most trustworthy data source for salary information.
The nominal salary is the unadjusted salary paid.
The real salary is adjusted to consider the purchasing power by state. We multiply the nominal salary by a state purchasing parities index to indicate the relative value of salaries by state. For instance, while New York or California might pay the highest nominal salary, these states are relatively expensive and so the real value of the salary is often less than a cheaper to live in state with a lower nominal salary.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Alabama
- 10th percentile: $23,210
- 50th percentile: $39,450
- 90th percentile: $55,230
Highest salary states
District of Columbia
$63,350
Average salary
Massachusetts
$54,890
Average salary
Washington
$54,150
Average salary
California
$53,980
Average salary
New Jersey
$53,360
Average salary
Connecticut
$52,350
Average salary
New York
$52,070
Average salary
Future outlook
Future Outlook Projections are taken from the Projections Management Partnership (PMP). The PMP is funded by the Department and Labor, Employment and Training Administration, with direct support from the Bureau of Labor Statistics. The PMP provides data-driven projections of future workforce needs.
National
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District Of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
1,501,910
Bookkeeping, Accounting, and Auditing Clerks total employment
170,200
Annual openings include jobs available due to both an increase in demand, and regular employee turnover (retirees, career switchers, etc.).
-3%
The estimated increase in jobs (2020-2030) is the increase in total jobs expected and does not consider employee turnover.
To provide context to estimated job growth, we employ a “fire and ice” system, which compares projected career growth to the national average of 5.2%, as follows:
<-10% = 3 ices |
Btwn -5 to -9.9% = 2 ices |
Between -5% to-.1% = 1 ice |
between 0- 5.5% = neutral |
Between 5.5%-10% = 1 fire |
Between 10-20% = 2 fire |
>20%=3 fires |
At the state level, we simply sort the states from fastest growing to slowest within the particular career, or 1st to 50th.
The fastest growth states
Utah
+16.6%
Idaho
+14.2%
New York
+11.9%
Washington
+11.2%
Alaska
+11%
Arizona
+11%
Colorado
+10.1%
Last five years employment and salary
We utilize historic annual BLS salary and total employment statistics to create a trend line which illustrates the job market over time for a particular career.
National
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
National
Average Wage | Total employment |
---|---|
2016: $38,390 | 1,566,960 |
2017: $39,240 | 1,532,340 |
2018: $40,240 | 1,530,430 |
2019: $41,230 | 1,512,660 |
2020: $42,410 | 1,443,940 |
2021: $45,560 | 1,509,370 |
2022: $45,860 | 1,550,750 |
2023: $47,440 | 1,501,910 |
Continuing education
Advanced degree programs are typically needed to progress further in a finance career – for example, to become an accountant or finance manager.
Experienced bookkeepers with at least a bachelor’s degree will have already fulfilled the education and experience requirement for becoming a CPA, and might consider prepping for the CPA exam.
You can also find in-person and online professional courses in bookkeeping meant to update and/or enhance your skills. They range from level 1 to level 4 and include:
- computerized bookkeeping
- payroll
- accounting
- cash management
Another way to enhance your knowledge and improve your career is to take courses that focus on learning how to use new accounting software.
Should I become a bookkeeper?
Bookkeeping is a core part of any company, which makes this a good career choice. You don’t have to limit yourself and work for a single firm. You could, for instance, become a freelance bookkeeper and provide services to several smaller businesses.
Additional resources
American Institute of Professional Bookkeepers (AIPB)
This national body and membership organization also provides certification through education modules and a 4-part exam.
International Association of Bookkeepers (AIB)
A membership organization that provides information about best practices, supports bookkeepers growing their business and helps companies find a bookkeeper.