If you want to know how to become a bookkeeper and make good money, this is absolutely the right article to read.
It reveals all you need to know about becoming a bookkeeper and exactly how you can make money.
A bookkeeper is simply someone who records the transactions of a business. Several people are dreaming of making money as bookkeepers.
If you are one of them, then it is a noble ambition that you desire. Indeed, this will bring in money for you and also put food on your table.
It is also interesting that you can perform the duties of a bookkeeper right from the comfort of your home. In this case, you don’t need to spend money shuttling between an office and your home. Indeed, you will get to save money.
Who Is a Bookkeeper?
A bookkeeper is responsible for the recording of financial transactions. He or she performs the duties that entail identifying, measuring, and recording financial transactions.
Bookkeepers are the “keepers of books” they do this for a lot of clientele.
Who Needs Bookkeepers?
Many small and large businesses need bookkeepers to record their business transactions.
Clients can employ you to you record their financial detail, read over financial documents for accuracy, update financial statements, and help solve problems of miscalculations and errors in accounting, etc.
It would interest you to know that professionals such as accountants and tax auditors also seek the assistance of bookkeepers to help them complete their duties.
To make quick money as a bookkeeper you may need to work with clients that may seek your services online. In this case, you become a virtual bookkeeper and work from home.
In summary, those who hire bookkeepers include individuals, small businesses, non-profit organizations, government agencies, and so on. You can work at home as a freelance bookkeeper or a virtual bookkeeper, or you can be hired full-time.
Related: Types of Financial Intermediaries.
How To Become a Bookkeeper
There are things you can do to become a bookkeeper. You become a bookkeeper with no experience but you will need to take some type of training to learn the skills needed.
You can usually start working without having earned any specific qualifications.
At least, you may need to have completed a certificate or diploma course in bookkeeping to attract most clients or employers.
If you have a school-leaving certificate, you can still gain on-the-job experience working with some employers.
Beyond getting bookkeeping training from the scratch, you can also become a certified bookkeeper.
In the United States, most employers would prefer bookkeepers who are certified with two bodies like the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB).
To become the American Institute of Professional Bookkeepers (AIPB)- certified, you must pass the four-part national certification exam. Also, you must meet the 3,000-hour work experience.
To earn National Association of Certified Public Bookkeepers (NACPB)- certified, you must pass an exam and show you have earned an Associate or Bachelor’s degree in Accounting.
That said, be reminded that you can become certified through local or online college courses.
What Are the Tasks of Bookkeepers?
There are specific tasks associated with most bookkeepers. These include:
Recording of daily sales
They enter important financial transactions into the appropriate bookkeeping software.
Yes, they can use bookkeeping software, databases, and spreadsheets, including Excel, Quickbooks, and Freshbooks to perform their duties effectively.
Filing of receipts of payments
They help clients keep track of receipts that document their expenses
They keep track of business expenses and help to reconcile discrepancies found in financial records. They can use bookkeeping software to perform this task as well.
They manage the payroll of clients.
Managing bills payments
They monitor and keep track of client payments
Producing financial reports for record-keeping purposes
It must be noted that the tasks of bookkeepers are client-specific, however, the tasks listed above are what is generally expected of most bookkeepers.
After performing the above tasks, accountants working for the clients will then review, analyze and make adjustments to the report before submitting it to management.
If you are a bookkeeper working from home or one that works from an office, the above tasks would be associated with you.
A quick summary of the bookkeeper’s jobs you should be ready to do include that:
- You analyze financial statements
- You collect receivables on time
- You comply with local, state, and federal government laws about financial reporting or taxes
- You conduct monthly or annual account reconciliation
- You issue customer invoices
- You maintain annual budgets
- You maintain a petty cash fund
- You monitoring debt level or financial standing
- You perform various admin support tasks
- You process and manage payroll
- You recording cash receipts
- You update the chart of accounts
What Qualities Do You Need to Be a Bookkeeper?
To become a bookkeeper you need to have specific qualities. These include
You have to be detail-oriented
A good bookkeeper must have an eagle-eye for details.
Since you will be responsible for recording sensitive financial data, it becomes important to be focused.
A little error can be costly to the client and you.
So, detailed-oriented quality is required to avoid costly mistakes associated with bookkeeping.
Put in another way, having excellent attention to detail is a must for bookkeepers since they need to ensure the accuracy of financial transactions and a wide range of important figures.
You must have the abilities complete projects and meet deadlines
You need to meet deadlines always so you can always earn the trust of your clients. You will get a good rating that would bring in more jobs if you are known to keep with deadlines.
You have to be a great communicator so that you pass vital information to clients at the appropriate time
You can communicate effectively to pitch your skill from the onset. On the job, you should be able to highlight and convince clients on what is best for them, and you can also communicate earlier why you will not meet with a deadline and why.
You must be good with networking
Yes, you should have the ability to interact socially to find useful contacts and/or for personal advancement.
As a bookkeeper, you need to build a strong network that will help you grow in your profession.
Networking is all about getting aligned socially with other platforms and bookkeepers so you can grow and get in tune with the latest development in the bookkeeping world.
You must have good technical skills
You need at least, basic computer and math skills to work as a bookkeeper.
You also need to learn and use the latest bookkeeping software programs.
How Much Money Do Bookkeepers Make?
Bookkeepers earn a good income in exchange for their work.
According to a May 2019 report of The Bureau of Labor Statistics bookkeeping, accounting, and auditing clerks earned a median annual salary of $41,230 per year and $19.82 per hour
Freelance bookkeepers earn $20 to $40 on average. Some can earn up to $80 -$150 per hour.
Bookkeepers employed with a company earn somewhere between $35,000 and $55,000.
This means that on a full-time schedule of 2,000 hours per year, top bookkeeper businesses can bring in $300,000 per year.
Advantages or Pros of Becoming a Bookkeeper
There are many advantages associated with being a bookkeeper. If you are like some people who have decided to become bookkeepers from home, you too can enjoy the benefits.
The pros you will enjoy include:
- You can start-up a bookkeeping business with a low-cost budget
- You can set your hours and work from anywhere.
- You can earn a full-time income from home and you don’t need to work from an expensive office.
- You can get started without a degree or certificate.
- You can be hired by a wide range of clientele that includes individuals, small businesses, large corporations, and government agencies.
- You will earn good money based on your location and rating.
Disadvantages or Cons of Being a Bookkeeper
- There is very little room for errors. So, good focus and caution are required when doing this job.
- There is a need to take extra measures and invest in certain tools and systems that will make sure data is kept private and secure. Yes, since you are dealing with sensitive data, it becomes necessary to invest in the safety of the data. Although this is necessary, it may cost you some extra money if you are running a professional bookkeeping business.
- You may have to purchase specific accounting software. Yes, you need to invest in specific software that would make your job easy.
- It could be a challenge to land your first client without much experience or any references.
Where To Find Best Bookkeeper Jobs
Some places where you can access bookkeeper jobs include:
The above is what you should know about becoming a bookkeeper. This is a job that can be done by detail-oriented individuals.
The specific tasks of bookkeepers are shared above what it takes to become one is also revealed.
You can start making money today if you meet the basic requirements as shared in this article.