Do you wonder what it is to be a Bookkeeper? Perhaps you have wondered how to become one or if it is even necessary. You should seek professional assistance if you are looking to make a career out of bookkeeping or simply to earn more. Continue reading to find out more about the job, education requirements and the compensation. No matter what your reason, you will be glad that you took the time and learned about this profession.
Duties of the job
Balance the ledgers and create financial statements. You will need to have great organizational skills and confidentiality in order to perform your job well in a fast-paced organization. A bookkeeper may be responsible for managing accounts payable and receivables, reconciling bank accounts, and maintaining petty cash. Other tasks include performing sales tax payments.
Bookkeepers need at least a bachelor’s in order to qualify. However, others may not require a college degree. Entry-level positions may be available by employers that do not require high school diplomas. Bookkeepers can also have certifications such as those from the Association of Certified Public Bookkeepers. Additional training might include finance and accounting. However, businesses often request specific qualifications, such as relevant experience, in job postings.
Education necessary
As the cost of higher education continues to rise, an associate's or bachelor's degree is not always necessary for a career as a bookkeeper. In many cases, a high school education is enough. This degree gives aspiring bookkeepers the basics of math, writing, communication and other skills they need to succeed in their job. Furthermore, it helps them gain relevant time management, organization, and teamwork skills. However, a bachelor's degree may be helpful for advancement.
As a bookkeeper, you'll need to be good at basic math. Having some knowledge of spreadsheets is beneficial, but you don't need to be an expert in the subject. It is important to be able interpret data from software and to manage your time effectively. Most clients expect their bookkeepers to use accounting software to keep track of their accounts. You should also be able to learn new software. Employers are more likely to hire someone who has experience or certifications in a particular field.
Compensation
Based on the level of experience, compensation for bookkeepers varies widely. Many bookkeepers are self-employed and charge anywhere from $20 to $70 per hour. Bookkeepers with higher salaries are in the financial services and energy industries. Additionally, bookkeepers working for companies that have more complicated business models generally earn more. An hourly salary for a bookkeeper is between $20 and $40.
The national demand for bookkeepers is expected to decline over the next several years. The number of bookkeeper jobs in certain states like Arizona, Utah, Delaware and Nevada is expected to rise by as much as 4% over the next ten years. Florida, Maryland, Nevada, on the other hand, will see growth of around 7.9%. San Francisco, Boston and Los Angeles are home to the highest salaries for bookkeepers. You should study if you are interested in this career.
FAQ
What does it really mean to reconcile your accounts?
Reconciliation involves comparing two sets of numbers. One set is called "source" and the other the "reconciled."
The source is made up of actual figures. The reconciliation represents the figure that should actually be used.
You could, for example, subtract $50 from $100 if you owe $100 to someone.
This ensures there are no errors in the accounting system.
What is the significance of bookkeeping and accounting
Bookkeeping and accounting are important for any business. They enable you to keep track all of your expenses and transactions.
These items will also ensure that you don't spend too much on unnecessary items.
Know how much profit you have made on each sale. You'll also need to know what you owe people.
If you don't have enough money coming in, then you might want to try raising prices. You might lose customers if you raise prices too much.
You may be able to sell some inventory if you have more than what you need.
You can reduce the number of products or services you use if you have less money.
All these things will affect your bottom line.
What is the distinction between a CPA & Chartered Accountant, and how can you tell?
Chartered accountants are professional accountants who have passed the required exams to earn the designation. Chartered accountants have more experience than CPAs.
A chartered accountant also holds himself out as being able to give advice regarding tax matters.
It takes 6 to 7 years to complete a chartered accounting course.
What is an Audit?
An audit is a review or examination of financial statements. To ensure everything is correct, an auditor reviews the company's financial statements.
Auditors search for discrepancies between the reported events and the actual ones.
They also verify that the financial statements of the company are correct.
Statistics
- Given that over 40% of people in this career field have earned a bachelor's degree, we're listing a bachelor's degree in accounting as step one so you can be competitive in the job market. (yourfreecareertest.com)
- Employment of accountants and auditors is projected to grow four percent through 2029, according to the BLS—a rate of growth that is about average for all occupations nationwide.1 (rasmussen.edu)
- According to the BLS, accounting and auditing professionals reported a 2020 median annual salary of $73,560, which is nearly double that of the national average earnings for all workers.1 (rasmussen.edu)
- a little over 40% of accountants have earned a bachelor's degree. (yourfreecareertest.com)
- BooksTime makes sure your numbers are 100% accurate (bookstime.com)
External Links
How To
How to Become An Accountant
Accounting is the science and art of recording financial transactions and analyzing them. It can also involve the preparation statements and reports for various purposes.
A Certified Public Accountant is someone who has passed and been licensed by the state board.
An Accredited Finance Analyst (AFA), an individual who meets certain requirements established by the American Association of Individual Investors. A minimum five-year investment history is required in order to be an AFA according to the AAII. To pass the examinations, they must have a good understanding of accounting principles.
A Chartered Professional Accountant or CPA (sometimes referred to simply as a chartered accountant) is a professional accounting who has received a degree in accounting from a recognized university. The Institute of Chartered Accountants of England & Wales (ICAEW) has established specific educational standards for CPAs.
A Certified Management Accountant (CMA), is a certified professional accountant that specializes in management accounting. CMAs must pass exams administered annually by the ICAEW. They also need to continue continuing education throughout their careers.
A Certified General Accountant or CGA member of American Institute of Certified Public Accountants. CGAs are required take several exams. The Uniform Certification Examination is one of them.
International Society of Cost Estimators, (ISCES), offers the Certified Information Systems Auditor (CIA), a certification. Candidates for the CIA need to complete three levels in order to be eligible. These include practical training, coursework and a final examination.
Accredited Corporate Compliance officer (ACCO) is a distinction granted by the ACCO Foundation, and the International Organization of Securities Commissions. ACOs need to have a bachelor's degree in finance, public policy, or business administration. They must also pass two written exams as well as one oral exam.
A credential issued by the National Association of State Boards of Accountancy is called a Certified Fraud Examiner. Candidates must pass at least three exams to be certified fraud examiners (CFE).
International Federation of Accountants has granted accreditation to a Certified Internal Audior (CIA). Four exams must be passed by candidates to receive certification as an Internal Auditor (CIA). They will need to pass topics like auditing, compliance, risk assessment and fraud prevention.
American Academy of Forensic Sciences, (AAFS), gives the designation of Associate in Forensic accounting (AFE). AFEs need to have graduated from an accredited college/university with a bachelor's level in any other field than accounting.
What does an auditor do exactly? Auditors are professionals who conduct audits of organizations' internal controls over financial reporting. Audits may be conducted on a random basis, or based in part on complaints made by regulators.