How to Become a Bookkeeper: Don’t Miss the Salary Part

How to Become a Bookkeeper

A Bookkeeper has to deal with facts-n-figures. The work entails the keeping of books i.e. maintaining financial records. They may be physical books or, in today’s time, using software on the computer.

All kinds of businesses need to keep accounts to maintain all financial records… what money is coming in and what money has gone out. It also has the time and date when the transactions have to occur. While at a very small and individual level, a person may be able to keep accounts on his or her own. Once an enterprise gets bigger, he will need a Bookkeeper who may double as an accountant, otherwise your time for your actual work will reduce. Even the small companies hire freelance bookkeepers time to time for auditing purposes.

 

How to Become a Bookkeeper?

As such, Bookkeepers can find diverse employment opportunities even in small communities apart from metros and large urban areas. Even a firm or a grocery shop in a rural area will require the services of a Bookkeeper.

 

Job Description of a Bookkeeper: What Does a Bookkeeper Do.

A Bookkeeper is at a rung lower than that of a certified public accountant. And so does not have or lesser fiduciary responsibilities. His work involves…

  1. Banking.
  2. Reconciliation.
  3. Accounts payable and receivable.
  4. Payroll control and disbursement.
  5. You may also have to do all the taxation work for the company.

If you are a Bookkeeper, you will have to prepare, control, balance, and check various accounts using standard bookkeeping methods. Keeping a record of daily financial transactions in a ledger. Those are done either manually or by computer. It is important as is balancing of accounts. You may also have to prepare audit reports.

Depending on the job profile and the company you work for, you may also have to tally inventory figures. Be in charge of all banking works, and be eligible to pass vouchers for cash or disburse cash. As for such responsibilities, honesty is of utmost importance.

 

Qualifications Required for a Bookkeeper.

How to Become a BookkeeperYou obviously need to have a head for facts-n-figures and mathematics needs to be one of your strengths. Therefore, you ought to have taken subjects like math and accounting in school or other finance related subjects.

You also need to have computer experience. If you are familiar with software, which are used in accounting, is a plus point. In fact, most firms nowadays use some kind of accounting software. You should have basic functional knowledge to start the job but you need to learn the details very fast.

While you may not need professional qualifications, certification will always help in career advancement and even if you want to get an entry-level job. A college degree as also some study in an accounting course will also take you further.

Must Read: Career Coach: 7 Wonderful Facts You Need To Know

Career Advancement Opportunities for a Bookkeeper.

  1. Post studies an entry-level job is well and good, but obviously, you don’t want to be stuck there. With diligent work experience and study, you can aspire to become an accountant or inventory control manager.
  2. You can even freelance as a Bookkeeper because very small businesses may not want to hire a full time Bookkeeper. This way you can expand your area of work and once you have a large client base you can even employ other Bookkeepers. I have a friend who is earning more than $10,000 per month as a freelance Bookkeeper.
  3. Assistant accountant.
  4. Bank account information clerk.
  5. Cost clerk.
  6. Account clerk.
  7. Budget clerk.
  8. And finance clerk.

If you work for a large company, you will find many opportunities for career advancement there. Once you are experienced you can run your own consulting firm.

 

What is a Freelance Bookkeeping?

It is an individual or a consulting firm offers services on bookkeeping and audit. The services include…

  1. Fixed fee service. It is normally charged monthly.
  2. Hourly fee. This system used mainly by the small firm owners. The cost is $20 to $50 per hour per man.
  3. Startup pricing. This is used for support purpose and charged yearly basis.
  4. Project Fee. The fees is decided based on the project requirement and time frame.

 

Salary of a Bookkeeper.

In US, earnings of a bookkeeper would vary between $19,760 and $46,020 annually, along with other benefits. In the UK this would vary between £10,000 to £20,000 per year, again with extras. Obviously earnings depend on the firm you work for, your experience and abilities and your actual job profile. If you are self employed, a consultant or a freelance bookkeeper, your earnings may be substantially more or less, depending on how much work you have on hand.

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1 COMMENT

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