You can expect a Bookkeeper Salary range of $30,000 to $60,000 per year in the United States.
As bookkeeper, one can expect to work in close proximity to a firm or firm to ensure that the most economically feasible and safe decisions are made. This is necessary to keep finances tight and under control.
Who is A Bookkeeper?
A Bookkeeper is usually responsible for overseeing the first six stages of the accounting cycle, while the last two are usually supervised by an accountant. Although there is a common overlap between the two professions, there are some differences that will be discussed later in this article.
What Does It Take To Be A Bookkeeper?
A bookkeeper must have a thorough knowledge of QuickBooks or a similar computer accounting program to track and record financial transactions and company records. Strong MS-Excel skills are also required for most companies.
Part of the bookkeeping process also includes the calculation, recording and balancing of financial statements, including payroll.
Thus, the accountant needs to maintain a healthy relationship with employees in order to communicate and process changes in wages, changes in benefits and other changes in employee wages.
Bookkeeper Work Enviroment
A bookkeeper will also work closely with managers or business owners to ensure smart decisions are made. This is especially important when selling company assets or estimating total revenue, profit, loss and financial condition of the company.
Bookkeepers will also be responsible for generating many reports for the full and complete transmission of this information. These reports are usually generated once a month, every six months or annually.
What Is The Difference Between Accounting And Bookkeeping?
The differences between accounting and bookkeeping are subtle, but significant when considering a career in any field. Accountants record the daily financial transactions of the enterprise. Accountants, on the other hand, are more focused on the big picture.
There are many things involved in bookkeeping, and close attention to detail is paramount. Meanwhile, accountants typically use accountant data to create financial statements and periodically review and analyze financial information recorded by accountants. They conduct audits and forecast future business needs.
The two professions are similar, bookkeepers and accountants often work side by side. These professions require many of the same skills and attributes. However, there are significant differences, such as the work that is done in each career and must be successful.
Skills And Knowledge Needed As A Bookkeeper
- Basic knowledge of accounting
- Understanding of the best methods of accounting
- Knowledge of IFRS, U.S GAAP or other accounting system
- Data entry skills
- High attention to detail
- Microsoft Excel knowledge
- Perform work with a high level of accuracy
- Professionalism and organizational skills
- Associates degree or work experience of at least one year
- Knowledge of XERO, Quickbooks, Zoho, Fresh Books or other programs
What Is Bookkeeper Salary?
According to the Bureau of Labor Statistics, the average annual salary of a bookkeeper is $40,240 per year, and the average hourly rate is $19.35. Salary in accounting depends on a person’s education, level of experience and location.
As they gain experience, accountants can increase their salaries. Although the details may vary depending on the employee’s education and location, the table below shows the average hourly rates for accountants depending on their level of experience in the field.
What Is Bookkeeper Salary Range In USA?
A bookkeeper can expect a salary in the range of $30,000 to $60,000 per year in the United States. However, the remuneration will vary greatly depending on the employer, location and experience of the candidate.
Larger companies tend to offer better compensation to accountants; this is largely due to the increase in transactions and data. A multinational corporation performs hundreds of transactions per second, while a small business can perform less than a hundred per day.
Usually the entry level salary for both accountants and bookkeepers is usually the same; however, the accountant’s earning potential tends to increase with career advancement.
It is not uncommon for an experienced accountant to make a career transition to accounting or another profession. Because accountants work closely with source data, they tend to have a good understanding of how business works.
How Much Does A Full Bookkeeper Earn Per Hour?
Bookkeepers often receive an hourly wage instead of an annual one. The average salary for new entrants is $20 per hour. This is equivalent to approximately $40,000 per year for a 40-hour work week.
The advantage of an hourly wage is that you receive 1.5 times the average wage for hours worked in excess of 40 per week. In accounting, extra hours are typical during the busy tax season from January to mid-April.
How To Get Higher Salary As A Bookkeeper
Although no degree is a guarantee of salary, a bachelor’s or master’s degree can accelerate advancement in this field. Not all accountants have these degrees, and advancement may be possible through other means.
Bookkeepers wishing to advance from entry-level positions may take on more responsibilities as full-charge bookkeepers or they may engage in various types of accounting.
Additional education or certification may be required for promotion, depending on the position sought. The table below shows some career opportunities as well as the average annual salary of an accountant.
Bookkeeper Job Outlook
There are significant differences in job growth and wages between them. The growth of accountants and auditors is expected to continue over the next few years. The Labor Statistics Bureau segment will increase the number of jobs by 4% from 2019 to 2029.
However, the number of Bookkeeping and accounting staff is expected to decline, and the BLS forecasts a 6% reduction in jobs over the same period. The BLS notes that job growth for accountants should be fairly in line with the economy as a whole.
However, accountants will face pressure from automation and technology that will reduce the demand for such workers.
How To Become A Bookkeeper
Get training
Training in accounting can be carried out from different sources. Many accountants start by learning to use accounting software such as QuickBooks. They can also use online courses, books or seminars to learn the basics of practical finance. Self-taught bookkeepers often acquire the necessary skills without direct training, and instead learn while working.
Most employers can train an entry-level accountant in six months or less. The length of the training period for a self-taught accountant will vary depending on the chosen method and personal schedule.
Apply for the position
If you are interested in being paid as a Bookkeeper, your next step will be to find a local or remote job. To present yourself as a qualified candidate, you will need to create a well-written resume that highlights your accounting skills and describes any professional experience you may have.
Familiarity with bookkeeping softwares, a deep understanding of personal and business finance, and a desire to learn are great skills to incorporate. If you lack practical experience, you can make up for it by imagining yourself as hardworking with significant potential for growth.
Consider certification
Both paid and freelancers can be certified. The American Institute of Professional Bookkeepers and the National Association of Certified Public Bookkeepers may offer you the title of Certified Public Bookkeeper.
To obtain these certificates, you need to work as a full-time accountant for at least two years or a comparable number of part-time hours. Then you have to pass an exam and commit to a code of ethics. Alternatively, you can take the Uniform Bookkeeper certification exam online to obtain a Certified Public Bookkeeper license.
Become a freelancer
If you are more interested in being a freelance accountant, your next step will be to set up your own accounting department.
Most of your potential clients will want to hire someone with some hands-on experience, so you may want to work in a traditional position as a local accountant or accountant for a year or two before becoming a freelancer.
CONCLUSION
Along with the above factors, the average salary of an accountant can also be affected by the condition in which you need to hire. Looking at occupational statistics from the U.S. Bureau of Labor Statistics, accountants collect the most in Alaska, where the average salary is $48,640 a year and $23.39 an hour.
South Dakota is at the other end of the scale: local accountants charge $33,970 and $16.33 per hour. In general, the national average for accountants is $40,662 per year and $ 20 per hour.
Usually the entry level salary for both accountants and accountants is usually the same; however, the accountant’s earning potential tends to increase with career advancement. It is not uncommon for an experienced accountant to make a career transition to accounting or another profession. Because accountants work closely with source data, they tend to have a good understanding of how business works.
Bookkeeper Salary FAQs
What Is Bookkeeping Meaning?
Bookkeeping is the accounting of financial events that take place in the company. Any process of recording financial data is considered accounting and is the first step in entering data into the bookkeeping system. The standard methods of bookkeeping are double and single entry. Good accounting practices are important for business success, especially when it comes to the tax season.
What Do You Need a Bookkeeper For?
Bookkeepers can deal with many financial aspects of your business, such as creating financial statements, processing accounts payable and receivable, and accounting for payroll. Make a list of all the services you need and the frequency of these tasks.
