Introduction

Bookkeepers are responsible for one of the most fundamental careers in the finance and accounting industry. Their job consists of keeping track of the financial records of businesses by registering financial transactions performed and keeping hold of accounts, including funds and finances expended. Not only are they a main point of reference to become a bookkeeper is for the business and people involved, but they are also valuable sources of data for other financial-related works.

Bookkeepers are the foundation for every type of business and financial establishment, and without them, the smooth operation of companies and their financial liabilities are at risk. This career option is multifaceted and secure. Workers in this field can choose to expand their knowledge and specialise in areas of their desire, such as education, manufacturing, medical and healthcare, and even business and sports.

What Are the Main Types of Bookkeepers?

General Bookkeepers 

Role and Key Responsibilities: 

General bookkeepers perform the daily financial tasks of businesses, such as monitoring and recording over-the-counter transactions and reconciling accounts daily. Their primary responsibility is always to keep the books at their companies in good order and complete at all times. 

• Recording Transactions: A basic and all-encompassing task for a general bookkeeper is properly documenting what financial transactions have occurred and ensuring that they’re all entered into the appropriate accounts, properly referenced, and easily locatable at a future date. 
• Reconciliation of Accounts: One of the primary duties of general bookkeepers is to reconcile accounts. This involves comparing the internal company records with bank statements to make sure that there are no differences. Any differences will be rectified immediately, and errors will not be recorded in the reporting years.
• Accounts Payable and Receivable: Most bookkeepers manage invoices and payments for businesses, making sure that bills are paid on time and that payments owed to the business are received. It’s the accounting equivalent of a doctor checking a patient’s pulse—a crucial health check on cash.
• Maintaining the General Ledger: Generally, general bookkeepers keep the books of accounts of the business, namely the general ledger, the main accounting journal where all transactions of the business are recorded for the exact breakdown of what transactions belong to which category.
• Producing Financial Reports: Accounting practitioners such as general bookkeepers also produce balance sheets, income statements, and cash flow statements. These financial reports are essential for managers to understand the performance and financial health of their business. 

Full-Charge Bookkeepers

Role and Key Responsibilities:

A full-charge bookkeeper handles all the accounting transactions for a small to medium-sized business and undertakes a greater number and broader scope of tasks than a general bookkeeper. Often, full-charge bookkeepers do work that an accountant would do for a larger company.

• Handles the Entire Accounting Cycle: Full-charge bookkeepers oversee and maintain the entire accounting cycle, which includes accounting for revenue and expenses, reconciling accounts, and preparing financial statements.
• Financial Statements: While bookkeeping for profitability is performed regularly, the creation of full financial statements is done on an irregular basis—once a year, plus additional reports and financials during tax preparation. For example, a full-charge bookkeeper will produce the balance sheet, income statement, and cash flow statement.
• Employees’ Pay: Full-charge bookkeepers are responsible for payroll processing, meaning that they oversee the payment of employees with the correct wages by the appropriate date. Such tasks include calculating wages, withholding and remitting payroll taxes and benefits, and complying with payroll regulations.
• Tax Preparation and Filing: Bookkeepers fill out businesses’ tax forms and make sure that their tax burden is met and that their tax returns are filed correctly and on time. With their help, firms are less likely to be penalised for noncompliance. 
• Managing Internal Controls: Full-charge bookkeepers create and supervise internal controls to ensure the safekeeping of their company’s financial assets. They also create processes to prevent fraud and make sure that their company’s financial practices adhere to industry standards.

Certified Bookkeepers

Role and Key Responsibilities:

Certified bookkeepers are bookkeepers who have gone through the extra training and certification process to signify their competency and dedication to the record-keeping profession. Certification often requires passing a test and continuing education. 

• More Complicated Ledgers: Certified bookkeepers handle more complicated ledgers that require a higher level of skill and proficiency. This includes maintaining multiple accounts, preparing detailed financial reports and sheets, and analysing further financial data.
• Check Compliance With Accounting Standards: A certified bookkeeper also ensures that all financial records and related accounting practices relating to them adhere to accounting standards and practices, ensuring the books remain financially and legally compliant.
• Financial Analysis: A certified bookkeeper will provide a detailed financial analysis of your business to be able to make informed decisions. For example, looking at your financial statements, are you getting a 70% return on investment? What is your profit/loss percentage? Are you on the right path? If not, what can your bookkeeper suggest?
• Counselling on Financial Best Practices: Certified bookkeepers offer advice on the best financial practices for your business. This could involve recommending ways to improve your company’s internal controls, financial record-keeping and reporting procedures, and cultivating efficient and effective financial practices.
• Continuing Professional Development: Certified Bookkeepers must undertake Continuing Professional Development to maintain the certification. It is my objective to remain abreast of new trends in bookkeeping, incorporating changes in procedures and new rules to keep the certification active and provide my clients with major support at all times.

What Does a Bookkeeper Do?

Recording Transactions

For instance, one of the core tasks of a bookkeeper is to record the transactions that the business does. Every financial transaction a business does should be paid attention to, recorded, and input accurately and as soon as possible. These transactions might be a sale, a purchase, or other events involving receipts or payments. By inputting the data correctly, the bookkeeper helps to ensure that there is no error in the financial records and that the results of the reporting are accurate.

Reconciling Accounts

Also called ‘month-end closing’, account reconciliation involves matching up the business’s internal financial records with the external records of third parties (usually banks issuing bank statements, for instance) to check that they are the same and are reconciling, i.e., that there are no discrepancies present. Because of this, bookkeepers constantly carry out a series of reconciliations to keep the accuracy of those financial records in check and to ensure that, subject to any errors underlying them, the business’s level of indebtedness (within the cash flow cycle) is presented as accurately as is feasible.

Managing Accounts Payable and Receivable

Bookkeepers maintain both accounts payable and accounts receivable. Accounts payable refers to the money the business owes to its suppliers and making sure that bills are paid on time to keep the business in good standing with its vendors and to avoid late charges. Accounts receivable involve money owed to the business by its customers. Bookkeepers ensure timely invoicing and chase down customers who owe the business money to keep the inflow of cash healthy and plentiful.

Maintaining the General Ledger

The general ledger represents the backbone of a business’s accounting record. It contains every transaction that takes place and is used to create the financial statements of the business. Bookkeepers manage the general ledger and enter every transaction into it, ensuring that it gets posted to the appropriate account. Each entry is reviewed and entered regularly so that the general ledger is both current and accurate.

Preparing Financial Reports

Bookkeepers typically produce different financial reports, providing information on the firm’s financial position. For example, the balance sheet of the company reports on the financial position of the company at a point in time, listing the assets, liabilities, and equity. The income statement provides information on the profitability of the firm over a period of time, such as revenues and expenses. In another report, the cash flow statement reports on the cash inflows and outflows of the firm; for example, how cash is being generated and used.

Average Bookkeeper Salary

Salary Ranges Based on Experience and Location

In addition, bookkeeper salaries can vary based on experience level, the company’s size, or where you’re located. For someone with no experience, the average starting bookkeeper salary is roughly between £18,000 and £25,000 a year. After working for a few years, bookkeeper salaries are often closer to between £25,000 and £35,000 a year. For more senior bookkeepers (sometimes referred to as full-charge bookkeepers), the average salary rises to between £35,000 and £55,000. 

Location also plays a role, as wealthy cities and financial hubs like London and New York tend to pay higher salaries.

In London and New York, where there is a higher demand for bookkeepers and a higher cost of living, it is quite easy to make more than £40,000, £50,000, or even £60,000 annually.

Comparison of Salaries in Different Regions

Geography also affects bookkeeper salaries. Taking the US as an example, a bookkeeper in California, New York, or Massachusetts earns more than someone with the same occupation in states with lower living costs, such as Texas or Florida. The same goes for accountants in London and the South East as opposed to other regions in the UK.

For example, a bookkeeper will generally be paid more in the Australian cities of Sydney and Melbourne than in a regional town, or in the Canadian cities of Toronto and Vancouver than in a small town or country.

Factors Influencing Bookkeeper Salaries

Several factors can influence the salaries of bookkeepers, including:

• Experience: Experience could be the best factor that affects the salary as well. Because bookkeepers with more experience could earn a higher salary as they know better and are more skilled. 
• Certification: A bachelor’s degree or another qualification relevant to bookkeeping can increase your earning potential. Professional certifications, such as those from the International Association of Bookkeepers (IAB) or the Institute of Certified Bookkeepers (ICB), can also indicate expertise and increase your salary.
• Industry: the industry in which a bookkeeper works can be a key factor in determining wages. For example, bookkeepers in the finance and insurance sectors can earn significantly more than others working in retail or non-profit organisations.
• Size of the Company: A small company might have fewer and more straightforward financial needs than a large company and might therefore be able to offer a lower salary than a larger company to a candidate from a bookkeeping school who has the skills to handle more complex issues.
• Location: As you read above, your geographical location is very important when it comes to salary. This is because some countries can offer better living conditions than others, and several factors come into play regarding the cost of living. Another factor has to do with demand.
• Specialisation: Bookkeepers with specific backgrounds in forensic accounting, payroll management, or tax preparation often report higher take-home pay because employers assign more work and value to their specialisation.

Bookkeeper Skills 

To be a good bookkeeper, you need to have a combination of both technical and soft skills. These skills are required to keep your financial records organised, processed, and accurate in compliance with the laws, regulations, and standards. They also help the entity achieve its objectives and become more effective.

Technical Skills 

• Mastery of Accounting Software: All bookkeepers must possess a high level of proficiency with accounting software. Being skilled in programmes such as QuickBooks, Xero, Sage, and Microsoft Excel is essential since these programmes enable bookkeepers to manage their clients’ books. Accounting software allows bookkeepers to automate data entry, transactions, and reports, compile QuickBooks company files, extract financial data, generate desired reports, and create summary sheets. The software also automates macros, which increases efficiency while minimising errors and streamlining processes. 
• Understanding Accounting Principles: Basic principles of accounting, including concepts like double-entry bookkeeping, are crucial for bookkeepers to keep in mind to record financial transactions in a systematic, complete, and consistent manner, which is essential for keeping true and reliable financial records. 
• Attention to Detail: Being accurate means paying attention to detail. Precision is also important in bookkeeping. The consequence of not paying enough attention to detail is that entries could be made incorrectly. As was seen with the school office, quick checking of entries, reconciling of accounts, and identifying possible errors are important. It’s these checks that make sure financial records are accurate and reliable. 

Soft Skills

• Managing Record: Managing a collection of financial records is a massive task. Without good organisation skills, a bookkeeper can’t stay on track when they have many documents, invoices, and bills to deal with each day. Being organised involves keeping files orderly. It also means having the ability to juggle multiple tasks at once, which helps with effective time management.
• Time management: You might have to be responsible for several of these tasks at once. Bookkeepers need to be able to prioritise their tasks, manage their workload, and meet their deadlines. This is crucial because all financial activities have to be recorded and reported to the relevant bodies at the right time. 
• Communication: Good communication skills allow the bookkeeper to explain key financial information effectively to non-financial stakeholders, such as by describing financial reports, explaining any anomalies and the reasons behind them, and vocalising the overall financial health status of the organisation.
• Problem-Solving: Bookkeepers need to be able to detect anomalies and resolve issues in accounting journal books. A basic requirement of this job seems to be the ability to identify issues or problems and devise solutions to mitigate them. This involves being able to make judgements about the integrity of the data, such as applying leeway in rounding financial entries. For instance, Bookkeeper Sam can round a figure of $9.19 to $9.20 in her accounting journal.

Bookkeeper Tips

• Software Development in Bookkeeping: As new bookkeeping software development is constantly happening to streamline business processes, industry trends and new product development in the bookkeeping and accounting fields are important. Thus, there is a need for the bookkeeper to be updated on the trends and software to be at the top of his or her game. Books and accounting software development are vast. A good bookkeeper needs to be constantly on the ball and take courses, attend webinars, and engage in other professional development to be current and refined. 
• Joining Professional Organisations: Join a professional IAB, ICB, or other organisation involved in accounting, auditing, bookkeeping, and all that is connected with bookkeepers. Being part of a professional organisation includes meeting like-minded individuals who you can network with, attend events with, borrow resources from, share knowledge with, and more.
• Certified: Get certified to be a bookkeeper from one of the professional bodies recognised in your profile. This will make you more marketable.
• Accuracy and Detail-Oriented: Accuracy is necessary for any bookkeeper. With good attention to detail, bookkeepers can double-check any errors and prevent them in the future. They can also reconcile accounts regularly and make sure that all financial transactions are recorded accurately.

Bookkeeper Requirements

Educational Requirements

• Diploma or Degree in Accounting or Finance: Undergraduate students interested in a career as a bookkeeper would do well to pursue a degree or diploma in accounting, finance, or a related field. These four-year programmes introduce students to a wide range of foundational financial and accounting topics, as well as equip them with leadership and management skills that will come in handy when managing teams and projects. The coursework will include financial accounting, managerial accounting, taxation, and business law.
• Related Coursework: In addition to your general education requirements, taking courses relevant to the field of bookkeeping and accounting is imperative. Courses like Principles of Accounting, Financial Reporting, and Accounting Information Systems provide essential knowledge and preparation for bookkeepers wanting to successfully manage financial records on a day-to-day basis.

Certification Requirements

• Professional Qualifications: Carefully consider seeking Certified Bookkeeper status from professional groups such as the International Association of Bookkeepers (IAB) or the Institute of Certified Bookkeepers (ICB). This can be an excellent way to get recognition for your expertise, displaying your commitment to the profession and your dedication to following relevant professional standards. Certifications usually come after passing an exam and maintaining a continuing professional development (CPD) programme.

Experience Requirements

• Internships and Entry-Level Jobs: One of the main ways to get real experience is through internships or entry-level jobs. An internship or an entry-level job allows you to gather experience on the job that you would find in working as a bookkeeper, such as recording transactions, reconciling accounts, and creating financial reports. An internship or an entry-level job will also give you insight into what it is like to work as a bookkeeper on a day-to-day basis.

How to Become a Bookkeeper

Completing Relevant Education

• Earning a Diploma or Degree: The first step for anyone who wants to become a bookkeeper is to earn a diploma or degree in accounting, finance, or a similar discipline. Many colleges and universities offer dedicated bookkeeping programmes that include specialised training in accounting principles and practices. A degree programme provides a broad education in financial management and prepares graduates for a variety of potential bookkeeping roles. 
• Niche Programmes: Special programmes are also offered by community colleges, technical schools, and online degree mills. While they can cover the basics quickly, these programmes are often about honing one’s skills in a specific area of specialised bookkeeping or a particular software package (for example, QuickBooks and Xero).

Gaining Practical Experience 

• Internships: Internships offer real-world, hands-on experience. Most interns work directly under another bookkeeper or accountant, and they begin to learn the basics of recording transactions, reconciling accounts, and drafting and distributing financial reports. Networking: Internships provide many networking opportunities. Potential full-time employment: Upon completion of the internship, they might be asked to stay a full-time employee of the business. 
• Entry-Level Positions: An internship or degree obtained is followed by entry-level positions, including junior bookkeeper, accounting clerk, or accounts assistant. Towards accounting and managerial positions Entry-level positions provide a foundation for continual growth towards more advanced positions within the accounting and financial sectors.

Obtaining Certification

• Certification: The International Association of Bookkeepers (IAB) offers certification for bookkeepers at many competency levels, ranging from introductory to advanced—the IAB’s highest certification. IAB certification shows not only that you understand bookkeeping principles and practices but also that you are truly invested in the profession. To achieve certification, you must pass exams that cover certain concepts and competencies.
• Accreditation: A professional bookkeeper can enhance their credentials through certification with the Institute of Certified Bookkeepers (ICB). ICB is a globally recognised brand of qualifications formed from the merger of the International Association of Bookkeepers and the American Institute of Professional Bookkeepers. Through a programme of courses and exams, you can earn the distinction of ICB Accredited Bookkeeper (Associate), ICB Member, or ICB Fellow, depending on your educational background and work experience. These designations encourage employers to hire professional, highly qualified bookkeepers. 

Continuing Professional Development 

• Workshops, Seminars, and Webinars: Being involved in workshops, seminars, and webinars for continuous professional development is necessary to stay abreast of the recent technological as well as regulatory developments in bookkeeping. These events help us learn about new software, changes in accounting regulations and practices, and best practices in money management.
• Advanced Degrees: Consider getting a bachelor’s degree in accounting or a master’s degree in accounting. Advanced degrees will give you deeper training in accounting principles and practices, so there are more opportunities available in the finance and accounting professions. Higher skills unlock the skills needed for upper management positions and lead to more specialty niches in accounting and finance.

Networking

• Professional Organisations: Consider joining a professional organisation such as the International Association of Bookkeepers (IAB) or the Institute of Certified Bookkeepers (ICB). This offers the potential to network with other members and learn from industry events, resources, and your peers.
• Attend Events in the Industry: Involving yourself in industry events such as conferences, seminars, and workshops is very important. This way, you get to meet a lot of people in the field. You get to make connections with some professionals, learn from their experience, get to know how they are handling themselves within the market, and possibly even land a job. It is a good way to learn and keep yourself updated on the current trends in bookkeeping.

Get Qualified as a Bookkeeper

Bookkeeping Online Course, Masterful Use of QuickBooks for Bookkeeping

Frequently Asked Questions (FAQ)

Why should you be a bookkeeper?
Becoming a bookkeeper offers several advantages. It is a stable and rewarding career with numerous opportunities for growth. Bookkeepers play a crucial role in managing financial records and ensuring the financial health of businesses. This profession provides job security, competitive salaries, and the flexibility to work in various industries. Additionally, bookkeeping skills are highly transferable, allowing for diverse career paths and opportunities.
Is bookkeeping a good career choice for you?
Bookkeeping is an excellent career choice if you have a strong aptitude for numbers, attention to detail, and organisational skills. It suits individuals who enjoy working with data, have a methodical approach, and possess strong ethical standards. If you are interested in finance and enjoy ensuring accuracy in financial records, a career in bookkeeping can be highly fulfilling. Bookkeeping also offers the potential for advancement into higher-level accounting and financial roles.
Bookkeeper Salaries
Salaries for bookkeepers vary based on experience, location, and the size of the company. Entry-level bookkeepers typically earn between £18,000 and £25,000 per year. Mid-career professionals can expect to earn between £25,000 and £35,000, while experienced bookkeepers may earn £35,000 to £45,000 annually. Senior roles, such as full-charge bookkeepers, can command salaries exceeding £55,000 per year. Bookkeepers working in major cities or for large companies may earn higher salaries due to increased demand and the cost of living.
Which qualifications can help with a career in bookkeeping?
To pursue a career in bookkeeping, obtaining a relevant diploma or degree in accounting, finance, or a related field is beneficial. Professional certifications such as those offered by the International Association of Bookkeepers (IAB) or the Institute of Certified Bookkeepers (ICB) are highly valued and often required for advanced positions. These certifications demonstrate expertise and commitment to the profession, enhancing career prospects. Continuous professional development through courses, workshops, and seminars is also essential for staying updated with the latest trends and regulations.
Do I need to be an experienced bookkeeper to get started?
No, you do not need to be an experienced bookkeeper to get started. Many entry-level positions and internships are available for those new to the field. These roles provide valuable hands-on experience and training. It’s essential to build your skills and gain practical experience while pursuing professional certifications to advance in your career. Internships and entry-level positions help you understand the day-to-day responsibilities of a bookkeeper and provide a foundation for future growth.
Bookkeeper Career Outlook
The career outlook for bookkeepers is positive, with strong demand across various industries. As businesses grow and financial regulations become more complex, the need for skilled bookkeepers continues to rise. The increasing reliance on financial transparency and accuracy in business operations ensures that bookkeepers will remain essential, offering stable and rewarding career opportunities. Technological advancements and the adoption of new accounting software also create opportunities for bookkeepers to enhance their skills and stay competitive in the job market.
Bookkeeper Hierarchy and Progressing Within the Role
The typical career progression for bookkeepers starts with entry-level positions such as junior bookkeeper or accounting clerk. With experience and additional certifications, professionals can advance to roles like senior bookkeeper, accounting manager, or full-charge bookkeeper. Continuous learning and professional development are key to climbing the career ladder in bookkeeping. Advanced roles may involve overseeing entire accounting departments, managing more complex financial tasks, or specialising in areas such as tax preparation or auditing.
Bookkeeper Exit Options and Opportunities
Bookkeepers have a wide range of exit options and opportunities outside of traditional bookkeeping roles. Their skills are highly transferable, allowing for careers in finance, accounting, consulting, and even entrepreneurship. Experienced bookkeepers can transition into roles such as financial advisors, business analysts, or tax consultants. Additionally, some may choose to start their own bookkeeping firms or businesses, leveraging their expertise to offer specialised services. The versatility of bookkeeping skills opens up numerous pathways for career advancement and diversification.