How to Become a Bookkeeper
From ancient merchants and farmers to modern-day enterprises, civilization has relied on bookkeepers to manage financial records and organize documents for thousands of years. When you learn how to become a bookkeeper, you become a vital asset to businesses and organizations by providing accurate financial records to help companies manage their cash flow.
There are many benefits to pursuing a career in bookkeeping. There’s tons of room for advancement into higher-paying positions such as bookkeeping supervisor, accountant, and certified public accountant (CPA). Some bookkeeping jobs also offer the opportunity to work from home and work a flexible schedule.
If you’re ready to learn how to become a bookkeeper, read on to find out what you’ll need to get started.
What Is a Bookkeeper?
A bookkeeper is an administrative professional who records financial transactions, prepares accounts, and keeps track of day-to-day financial data. Bookkeepers typically work in professional services, wholesale trade, retail trade, healthcare, finance, insurance, and government.
There are generally three types of bookkeepers:
- General bookkeepers: General bookkeepers record financial transactions for businesses, post invoices and payments, and monitor monthly bank reconciliations. Many general bookkeepers begin at entry level and move up to advanced bookkeeping positions.
- Full-charge bookkeepers: A full-charge bookkeeper shares many of the same duties as a general bookkeeper, but they often handle payroll and financial transactions for small-to-medium-sized businesses. Full-charge bookkeepers usually have more experience than general bookkeepers and often have some accounting knowledge.
- Certified bookkeepers: Certified bookkeepers handle a wider range of tasks than general and full-charge bookkeepers. These include monitoring accounts payable and receivable, general ledger, and daily transactions. They also handle all financial and income statements and may take on some accounting responsibilities. They must have at least two years of accounting experience and pass a four-part exam.
What Do Bookkeepers Do?
Bookkeepers help businesses keep their finances in order by maintaining transaction records and providing up-to-date financial information.
The day-to-day bookkeeping responsibilities often include:
- Reviewing, updating, and keeping track of financial records.
- Creating financial invoices for customers and clients.
- Posting debits and credits.
- Creating and maintaining charts and spreadsheets to monitor accounts.
- Managing balance sheets to keep track of company expenses and deductions.
- Collecting financial transactions.
- Completing data entry.
- Reconciling bank accounts.
- Handling accounts receivable and payable.
- Processing payroll.
Most bookkeepers work full-time, while others work part-time or as freelancers. Some bookkeepers advance to accounting and auditing positions after completing an undergraduate degree and/or expanding their skills.
Bookkeeping vs. Accounting
While bookkeeping and accounting roles may overlap, they have some key differences. While bookkeepers typically handle financial data, accountants analyze and present financial data to businesses.
Accountants also forecast future earnings or losses, identify financial risks, and recommend budget cuts when necessary. An accountant can be a bookkeeper, but a bookkeeper can’t be an accountant without the right education, training, and credentials. For more information, see Monster’s guide on how to become an accountant.
How to Become a Bookkeeper
Bookkeepers must have at least a high school diploma or equivalent. You don’t necessarily need a college degree to become a bookkeeper, but it’s highly recommended to have some postsecondary education to enter this field. In fact, some employers either require or prefer that candidates have a college degree.
Consider completing an associate degree or postsecondary certificate in accounting to gain the knowledge and skills necessary for a bookkeeping job. Earning a bachelor’s degree in business administration, finance, or accounting will likely open up more opportunities and boost your value to employers.
Postsecondary coursework relevant to bookkeeping includes mathematics, finance, computer systems, economics, and business.
The skills needed to be successful in bookkeeping include:
- Keen attention to detail.
- Data entry skills.
- Analytical skills.
- Strong organizational and time management skills.
- Math skills.
- Computer skills.
- Transparency, integrity, and confidentiality.
- Problem-solving skills.
- Excellent communication skills.
See this job description sample to learn more about how to become a bookkeeper.
Bookkeeper Training
As a bookkeeper, you’ll receive on-the-job training under the guidance of an experienced employee or supervisor. This can be done through an internship or a placement program, which can take about six months to complete.
During your on-the-job training, you’ll learn how to complete double-entry bookkeeping to balance accounts. This process involves entering financial transactions twice, once as a debit and another time as a credit.
Additionally, you may be trained on how to use accounting software, spreadsheets, billing and invoice tools, and other specialized computer programs.
How to Become a Certified Bookkeeper
Bookkeeping certification isn’t a requirement for bookkeepers, but it’s highly recommended if you want to broaden your job opportunities, gain more skills, and boost your pay.
The American Institute of Professional Bookkeepers (AIPB)
The American Institute of Professional Bookkeepers (AIPB) offers the Certified Bookkeeper (CB) designation for candidates who have at least two years of full-time bookkeeping experience. You may also be eligible if you have 3,000 hours of part-time or freelance experience.
To obtain the CB credential, you must pass the four-part national exam. The first two parts must be taken at a Prometric testing center, while parts three and four are open-book tests. All parts of the exam contain multiple-choice questions that cover entry adjustments, accounting errors, payroll, depreciation, inventory, internal controls, and fraud prevention.
The National Association of Certified Public Bookkeepers (NACPB)
You can also pursue specialized bookkeeping credentials from the National Association of Certified Public Bookkeepers (NACPB). That includes certifications in general bookkeeping, payroll, QuickBooks Online, accounting, accounting analysis, tax and business tax, and office management.
Each of the NACPB-accredited certificates requires you to pass an exam. Each exam contains 50 multiple-choice questions and simulations, and you’ll need to score at least a 75% to pass.
How Much Do Bookkeepers Make?
According to Monster’s salary data, the median bookkeeper salary is $42,099 per year. However, that could range from $34,300 to $50,883 depending on your experience, educational background, and location. Certified bookkeepers will likely earn more money than general or entry-level bookkeepers.
Monster’s Salary Calculator can show you how much bookkeepers generally earn in your area. Just enter the job title and location into the search bar to find the pay range, median salary, and potential next steps to advance your career and boost your pay.
How to Find Bookkeeper Jobs
Once you’ve learned how to become a bookkeeper, it’s time to start your job search on Monster. But before you apply, be sure to get your bookkeeper resume in order. Then, make sure you have a unique cover letter for each application that expresses your enthusiasm for the job and describes why you would be a good fit.
Once your application materials are ready to go, begin your job search by looking for bookkeeping positions on Monster.
Looking to work somewhere specific? Check out these five cities where bookkeepers are in high demand:
Get on the Books at Monster to Find Bookkeeping Jobs
Whether you’re just learning how to become a bookkeeper or you’re already certified, create your profile at Monster to find a job that matches your skills and experience level. We’ll get you connected with job recruiters looking for skilled bookkeepers like you. Plus, we’ll keep you in the loop on new bookkeeping jobs by sending free notifications directly to your phone.