A Guide to Bookkeeping: Skills, Salaries, and Careers

If you’re interested in being a freelance virtual bookkeeper, you can sign up for freelance marketplace websites to connect with potential clients. Freelance jobs can range from quick temporary projects to long-term employment. However, they may be less likely to offer training or educational opportunities.

With software there to cover the essential aspects of preparing financial reports, accountants are expected to use their time to analyze financial data and uncover insights and business trends. Basic bookkeeping ends and advanced accounting starts with the preparation of financial reports (also called financial statements), which show an overview of your company’s financial performance. Bookkeeping is a crucial function of accounting, and earning a bookkeeping certification is a great way to show employers your expertise. While a certificate is not a requirement to become a bookkeeper, some professionals pursue certification to show their skills to employers and stand out in their job search.

Creating a Business Plan for Your Bookkeeping Business

You can also learn how to use accounting software, like QuickBooks, which can teach you about the basics of bookkeeping as well as the technology used by many businesses. The American Institute of Professional Bookkeepers offers certification for experienced bookkeepers. You will learn how to record costs, value inventory, calculate depreciation, analyze financial statements, and use software programs. The courses cover bookkeeping, Microsoft Excel, business math, and payroll administration.

While most bookkeepers work with businesses, some individuals may also choose to hire a bookkeeper to track personal finances. The software also helps in preparing https://www.wave-accounting.net/nonprofit-accounting-best-practices-and-essential/ the trial balance, spotting errors, and making modifications. Additionally, working knowledge of accounting software is also desired in most accounting jobs.

What Does a Bookkeeper Do?

The ability to produce, comprehend and interpret invoices allows bookkeepers to track revenue entering a business and understand existing payments. Therefore, invoicing is an essential skill bookkeepers should have in order to do their job effectively. Bookkeepers can also program equations into spreadsheets to automatically calculate data and help analyze company transactions. Intuit is dedicated Accounting for Startups: 7 Bookkeeping Tips for Your Startup to providing its employees with the ability to learn and grow throughout their time with our company. Once candidates are hired as employees, they will be provided with training assignments and other resources that prepare them for their positions. Intuit provides its employees with supplemental learning materials after training has been completed to assist employees in developing their skills.

But yet again, there is no escape from a routine that will certainly oblige you to deal with calculations. A bookkeeper can expect to earn a salary in the range of $30,000-$60,000 a year in the US. However, compensation will widely vary depending on the employer, location, and candidate experience. Bigger companies tend to offer better compensation for bookkeepers; this is largely due to the increased volume of transactions and data. A multinational corporation performs hundreds of transactions a second, while a small business might perform less than a hundred in a day.

Intuit Academy Bookkeeping

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.

In addition, you can explore the organization’s archive of the latest bookkeeping news and updates, watch free bookkeeping training videos and take free certification practice exams. Completing bookkeeping courses online can also increase your competitive standing in the job market. While most employers don’t require candidates to show proof of their certifications, having them on hand can certainly help your chances of getting hired.

How to test bookkeepers’ data-entry skills

According to 81 percent of CBs who interviewed for a new job after becoming certified, having a certification contributed to getting the interview [4]. With a certified bookkeeper designation, you are qualified to perform all critical functions through the adjusted trial balance and basic payroll for small to medium-sized businesses. Most small business owners can begin managing their company’s finances by doing their own basic bookkeeping. However, as a business grows and the transactions multiply or become more complex and have greater tax implications, it may be necessary to seek professional help.

• That’s why it should serve as a heads up to you that if you want to pursue this career, you will have to be comfortable dealing with a little bit more than just elementary arithmetic skills.
• As a bookkeeper, you need to be detail-oriented, so you can ensure that all data is accurate and well-accounted for.
• With TestGorilla, you can create assessments made up of different skills tests to easily compare candidates’ bookkeeping abilities.
• The chart of accounts may change over time as the business grows and changes.
• You will have access to a client management portal, and can communicate with customers through video conferencing and messaging.
• Good bookkeeping practices are essential for a business to succeed, especially when it comes to the tax-paying season.

In addition, you must be able to handle any issues with a calm and productive approach. If you are committed to pursuing this profession, you must be comfortable with mathematical equations. As long as you are confident enough to handle numerical concepts and are quick to adjust to unexpected changes, you will perform well with your tasks.

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Assets, liabilities, and equity make up the accounts that compose the company’s balance sheet. At the end of the appropriate time period, the accountant takes over and analyzes, reviews, interprets and reports financial information for the business firm. The accountant also prepares year-end financial statements and the proper accounts for the firm. The year-end reports prepared by the accountant have to adhere to the standards established by the Financial Accounting Standards Board (FASB). Bookkeeping in a business firm is an important, but preliminary, function to the actual accounting function.

• As with the Balance Sheet, bookkeepers are also responsible for tagging transactions under the right accounts in the Income Statement.
• This information can help you make informed decisions about your business operations, investment opportunities, and other financial decisions.
• It will be helpful for you to understand this principle before posting any transactions.
• As a bookkeeper, your clients rely on you to keep their business financial transactions safe and fraud-free.
• But yet again, there is no escape from a routine that will certainly oblige you to deal with calculations.

A key aspect of preparing financial statements is following the accounting and reporting standards that apply to your industry or geography and as demanded by regulatory authorities. Financial reports that abide with accounting standards ensure regulatory compliance as well as make comparing financial positions simpler. Two commonly used accounting principles are the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). You may handle payroll functions as a bookkeeper, keep tax withholding records, and issue paychecks or send information to a contracted payroll service. Depending on the organization’s size, keeping track of business expenses and reconciling business statements may be your responsibility. As a bookkeeper, you will verify and balance receipts, keep track of cash drawers, and check sales records.