Bookkeepers offer a literal look at where you stand financially at the moment. Accountants take that financial data and help you see the bigger picture and the path your business is on. In colonial America, bookkeepers would record transactions in a “wastebook”—so called because the data would eventually find its way into an official ledger and the original book would go into the trash. If all your mental powers have been focused on getting your business off the ground, you might not yet fully understand what a bookkeeper does. In this guide we break down the day-to-day role of a bookkeeper, and why a good one is worth holding onto. The magic happens when our intuitive software and real, human support come together.
Most remote QuickBooks Live bookkeepers work from home which means you need a reliable hard-wired internet connection and a landline phone. Intuit will provide a laptop with all the technology and software required to meet your responsibilities. Intuit will also provide a webcam, headset, USB hub, Ethernet cable, backdrop, and VPN token.
Most bookkeeping, accounting and auditing clerks work full-time but may be required to work overtime to meet end-of-month, end-of-year or tax deadlines. These credentials validate that you have the skills and knowledge to perform bookkeeping tasks in alignment with accepted accounting procedures. For example, the NACPB requires professionals who want to become Certified Public Bookkeepers to complete coursework in accounting, payroll and QuickBooks online accounting software. Bookkeepers manage financial records for organizations of all sizes, representing all industries. The records they keep include expenditures (money spent) and receipts (money received).
This knowledge allows them to understand common pain points, anticipate challenges, and adapt best practices that fit your unique operational and financial demands. Modern bookkeeping is powered by digital tools that simplify data entry, reporting, and reconciliation. Proficiency with platforms like QuickBooks, Xero, and FreshBooks enables bookkeepers to work efficiently, generate tailored reports, and integrate smoothly with the broader tech stack a business relies on.
Accountants analyze and audit financial information, produce reports, and make strategic recommendations based on data and tax laws. They ensure employees are paid on time and that their pay is accurately processed. Bookkeepers also handle tax deductions, benefits, and other payroll-related expenses. By doing so, they help the business remain compliant with payroll regulations and avoid errors in employee compensation. Modern bookkeepers should be proficient in popular accounting platforms such as QuickBooks, Xero, or FreshBooks, and comfortable using cloud‑based tools that enable collaboration and automation. Their ability to use these platforms efficiently can bookkeeper save time, reduce errors, and deliver more accurate financial insights.
- In contrast, accountants earned a median annual salary of $77,250 in 2021, reports BLS, with the highest 10% earning more than $128,970.
- Let’s explore what bookkeepers do, some of the benefits of having one, and your options for bookkeeping services.
- Bookkeepers are essential for maintaining accurate financial records and ensuring compliance.
- So if you’re looking to hire a bookkeeper, it is essential to create a bookkeeper job description that fills your recruitment funnel with ideal candidates as quickly as possible.
- They manage everything from daily transactions to tax filings and cash flow.
- Both accountants and bookkeepers maintain accurate financial records, and sometimes, the terms are used interchangeably.
In addition, smaller businesses may use single-entry bookkeeping, while larger businesses are more likely to use double-entry bookkeeping. As a bookkeeper, you may need to help the business learn the best practices to keep their financial records up to date and organized. While bookkeepers aren’t always responsible for filing taxes, their role in tax preparation is critical.
What Education Do You Need to Become a Bookkeeper?
As businesses of all sizes continue to outsource their accounting functions, there will be significant demand for skilled and innovative bookkeepers to manage those tasks. As a bookkeeper, your work environment can vary greatly depending on the type of organization or business you work for. Generally, bookkeepers can work in several settings, including accounting firms, financial institutions, small businesses, and government agencies. Some bookkeepers also work remotely from home, offering their services online. A bookkeeper may work alongside accountants or financial professionals, or they may be responsible for managing the finances of a small business.
You might need only some or all of these services that can be part of the job of a bookkeeper. How your business operates is unique, and your bookkeeping follows suit. Let’s explore what bookkeepers do, some of the benefits of having one, and your options for bookkeeping services. Bookkeepers can boost their career prospects by certain degrees and certifications. Learn which qualifications help the most when it comes to securing a higher salary.
Evaluate qualifications and relevant experience
- Bookkeepers are not expected to have a four-year or five-year college degree in accounting.
- Look for bookkeepers with experience in your industry or a background working with businesses of a similar size and structure.
- Proper bookkeeping keeps your business organized and helps you make informed decisions.
An accountant may interpret the financial records that a bookkeeper compiles in order to assess a company’s financial health. When it comes to tracking financial data for a business, it’s important to understand the key differences between bookkeeping and accounting. Bookkeepers focus on the day-to-day record-keeping of a company’s financial transactions such as sales, receipts, and payments. On the other hand, accounting is a broader field that encompasses bookkeeping tasks but also involves analyzing and interpreting financial data.
To become an accountant, you typically need a bachelor’s degree in accounting or a related field. In some cases, bookkeepers who meet the education and experience requirements set by employers may get hired for junior accounting positions and advance while working on the job, according to BLS. Bookkeepers help business owners manage their finances by documenting transactions, paying and issuing invoices, generating reports, and recording accurate financial data. Bookkeepers can also deliver reports on your business’s financial standing. A bookkeeper is responsible for recording and maintaining a company’s daily financial transactions.
Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After almost a decade of experience in public accounting, he created MyAccountingCourse.com to help people learn accounting & finance, pass the CPA exam, and start their career. Bookkeepers often help with employee pay calculations, benefits, and tax withholdings, ensuring staff are paid correctly and on time with correct documentation.
Offloading these routine, yet critical, duties gives owners and managers more time to focus on strategy, sales, and customer relationships. With a bookkeeper actively monitoring invoices, payments, and expenses, it becomes far easier to spot cash flow bottlenecks or opportunities. “Essential to the operational success of any business, bookkeepers continue to play an important role in the workplace,” Stephens said. “While small business accounting software has made bookkeeping functions more organized, small business owners are still busy and rely on the expertise of bookkeepers.
Bookkeeper vs. accountant: What’s the difference?
Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support. After completing your education, you can seek an internship and get on-the-job training to become a bookkeeper. However, it helps to have a two- or four-year degree in accounting, finance or related discipline. The role can function as a part-time job to supplement other income, or you can be a full-time bookkeeper. If you become a QuickBooks Live bookkeeper, you can work from home based upon an agreed schedule at a set hourly rate based on your location, interview, and experience level.
