What You Need to Know About Becoming a Bookkeeper

Published on: May 2, 2024

Bookkeepers are accounting professionals who track financial transactions and manage financial statements for an individual organization, ensuring that the organization can successfully operate as a business. If you love to work with numbers, and you consider yourself an organized, detail-oriented individual, then you may want to consider a career in bookkeeping.

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Bookkeeper Duties and Responsibilities

To ensure that a business's financial transactions and statements are properly maintained, bookkeepers work to record all financial transactions and check all financial records to verify that they are accurate.

According to the U.S. Bureau of Labor Statistics (BLS), the primary bookkeeper duties and responsibilities include:

Using accounting software to input financial data.
Posting all financial transactions in a timely manner.
Assigning debits and credits to the appropriate accounts within the business.
Generating accounting reports for other professionals at the organization.
Reconciling all differences identified within the transactions.
Verifying that all financial transactions and financial statements are accurate and in good standing.

How Bookkeeper Differs From Accounting

One of the most common misconceptions about bookkeeping is that it is the same as accounting. The two terms, however, are not interchangeable. The primary difference between bookkeeping and accounting is that bookkeeping requires professionals to input and verify financial records. The practice of accounting requires professionals to evaluate and analyze information, and in turn, make recommendations for an organization based on that analysis.

Bookkeeping is often considered an entry point into the field of accounting, allowing aspiring accountants to earn the practical experience required to further their career in the field.

Skills Every Bookkeeper Should Have

Every bookkeeper should have the following skills:

Detail-Oriented — Bookkeepers must accurately input all financial statements into accounting software, and even one small mistake can lead to complex challenges. All individuals who wish to pursue a career as a bookkeeper should be organized and detail-oriented.
Critical Thinking — Throughout each day, bookkeepers are responsible for verifying the accuracy and authenticity of the financial records they are maintaining, so it is important that they can think critically and analytically.
Communication — By their very nature, bookkeepers are good with numbers, and they can easily interpret financial information. However, they are often required to present reports to those who are not as familiar with the best accounting practices, so they need to be able to communicate financial information clearly and effectively to everyone in their organization.
Numeracy — The vast majority of a bookkeeper's day is going to be spent working with numbers, so math skills are necessary for this field.

How to Become a Bookkeeper

If you are planning to pursue a career in accounting, you will want to know how to become a bookkeeper. These are the steps that you can take to create a solid foundation for a lifelong career in accounting.

Have an Understanding of Basic Accounting Principles

Accounting principles are standard practices that are used by most businesses, regardless of size or industry, to ensure that their financial records are properly tracked and maintained. Some of the basic accounting principles that bookkeepers should be familiar with include:

Accruals
Consistency
Going concern
Conservatism
Economic entity assumption
Materiality
Matching
Accounting equation
Accounting period

By developing a basic understanding of these basic accounting principles and concepts, you will be able to better perform your bookkeeper duties and responsibilities.

Pursue Formal Education and Training

Bookkeeping is often considered the gateway to a career in accounting, so before you take on a position as a bookkeeper, you may want to earn a bachelor's degree in accounting. An accounting degree will allow you to become proficient in the best accounting skills and principles, all of which can be applied in your role as a bookkeeper.

Gain Practical Experience

In addition to earning a bachelor's degree in accounting, you also will want to gain practical experience before taking on a professional role as a bookkeeper. You can do this through work-study programs or internships, which allow you to gain direct experience in accounting in a role where you will be guided or mentored by an established professional.

Pursue Necessary Certifications

To develop advanced bookkeeping skills and set yourself apart in a competitive job market, you also may want to pursue a bookkeeping certification. The American Institute of Professional Bookkeepers offers the Certified Bookkeeper certification program, which covers advanced bookkeeping techniques and emerging trends in the field. This certification program is designed for experienced bookkeepers who are looking to elevate their status in the field of accounting.

Build Your Professional Network

Throughout your degree program, you will want to focus on building your professional network. Networking in the bookkeeping and accounting fields will allow you to make powerful connections that can help you both launch and grow your career. You can begin building your professional network by attending industry conferences and events, joining professional associations and pursuing internship opportunities in the field.

Advancing Your Career in Bookkeeping

Bookkeeping is an increasingly competitive field, particularly in the digital era when new technology is redefining this position in a number of ways. To set yourself apart from other qualified candidates, you will want to take actionable steps to advance your career in bookkeeping.

Specialize in a Niche Area

One of the best ways to advance your career in bookkeeping is to specialize in a niche area of accounting. Some of the top accounting specializations to consider include:

Forensic Accounting
Management Accounting
Financial Reporting
Auditing

Specializations in one or more of these areas can help you pursue unique opportunities that may not be available to other candidates with generic qualifications.

Continuing Education And Professional Development

Bookkeeping skills are the foundation of the accounting field. Once you have mastered the technical skills required for this position, you will want to continue your education and prioritize professional development to keep growing in the field. Whether you choose to pursue an advanced degree in accounting or enroll in certification courses, you will find that investing in your education and training will allow you to pursue higher-level positions or niche opportunities in accounting.

Why Become a Bookkeeper?

You should consider becoming a bookkeeper because:

Bookkeeping skills are universal. Every industry, and every business, needs an expert bookkeeper on staff to properly maintain their records.
Bookkeeping provides you with an opportunity to enter the field of accounting. Once you have secured a position as a bookkeeper, you will find that there are plenty of opportunities for growth and development.
Bookkeeping offers a comfortable starting-level salary. The BLS notes that the median annual salary for bookkeepers is about $47,000.

What Do Bookkeepers Do? Learn More At Husson University

At Husson University, we offer an online Bachelor of Science in Accounting degree that allows you to hone the technical skills needed to become a bookkeeper. In addition, you will take an in-depth look at the best accounting practices and principles, giving you the foundation you need to grow your career in accounting.

Request more information about our online degree programs today.