Finance Strategists has an advertising relationship with some of the companies included on this website. We may earn a commission when you click on a link or make a purchase through the links on our bookkeeper vs accountant salary site. All of our content is based on objective analysis, and the opinions are our own. Accountants also perform overviews of the financial operations of a business to help it run efficiently.
Do you own a business?
To better serve clients and employers, they must be familiar with popular bookkeeping and accounting platforms and applications—able to adjust to new demands and responsibilities seamlessly. The roles of bookkeepers and accountants are constantly evolving – especially in the digital age. Accounting and bookkeeping technology is automating many of the tasks that used to take up an accountant or bookkeeper’s time. Both bookkeepers and accountants should have a high level of honesty and integrity, as they usually have access to a company’s bank accounts, employee data, and sensitive financial information. Good bookkeepers are capable of a wide variety of different finance-related tasks. As they gain experience, they may take on more complex responsibilities, such as advising clients or employers about best practices or compliance standards.
Small Business Resources
To maintain the credential, bookkeepers are required to engage in continuing education. Bookkeeping is the daily financial tracking of all of your daily financial transactions. The bookkeeper of a business might choose to use online bookkeeping software to track everything. As both professions engage in managing finances, a lot of people may confuse a bookkeeper for an accountant, and vice-versa. While they work towards a common goal, bookkeepers and accountants support the business in different ways, and in different stages of the financial process.
Do you already work with a financial advisor?
In September 2022, Payscale placed the national U.S. average rate for bookkeepers at $18.46 per hour. Bookkeepers should research local average rates to ensure they price their services competitively. According to BLS data from May 2021, the top 10% of bookkeepers earned median base salaries of $61,980 per year. In terms of pay, bookkeepers tend to earn the most by working in niche industries. Compared to other major employment sectors for bookkeepers, they host relatively few jobs.
But typically, accountants earn more than bookkeepers, and their midpoint salary is higher. They work hand-in-hand to ensure that the business complies with all legal and reporting requirements. This includes submitting documents and paying for local, state, and federal taxes on time. Typically, https://www.bookstime.com/ accountants, and sometimes even business owners, oversee bookkeepers’ work as their function has certain limits. When a bookkeeper wants to leap to being an accountant, they will need to take the CPA exam, plus earn a bachelor’s degree (most of the time), if they do not have one already.
In fact, businesses often receive the greatest benefit when bookkeepers and CPAs work together to ensure the company’s books and records are accurate and provide strategic advice. Bookkeeping is a transactional and administrative role that handles the day-to-day tasks of recording financial transactions, including purchases, receipts, sales and payments. Accounting is more subjective, providing business owners with financial insights based on information gleaned from their bookkeeping data. All small-business owners should consider hiring a professional accountant to handle their tax returns, at the least. When it comes to bookkeeping, some business owners choose to manage those tasks themselves. You may not mind balancing the books and handling financial transactions, and software like QuickBooks Online, FreshBooks and Xero can automate a significant amount of this work.
Starting Salaries and Benefits
- While there are certain similarities and overlaps between the two, there are distinctions that set these two roles apart.
- While these requirements may sound tedious, they could benefit your career in the long term.
- Bookkeepers and accountants deal with a business’s finances and are responsible for tasks that impact the company’s financial reporting.
- With many bookkeeping tasks being automated by accounting software, a small business may not need a full-time bookkeeper.
- Use of our products and services is governed by our Terms of Use and Privacy Policy.
- If you work with a small team, one of your current employees may be able to handle your general ledger and figure out how to reduce spending.
Raising median salaries for employees can balance the demand and supply of professionals in the sphere. As of 2021, approximately 1.7 million people worked as bookkeeping, accounting, or auditing clerks. The BLS expects the field to have a 5 percent decline in growth from 2021 to 2031. Still, you should see 197,600 job openings each year over the next decade [3]. To become certified, you need to pass a four-part examination, show two years of full-time bookkeeping experience or 3,000 hours of freelance or part-time experience, and sign a code of ethics.
Bookkeeper vs Accountant Job Description
Enrolling in one of the best online bookkeeping classes is a smart way for those interested in this career to bolster their existing financial knowledge. Therefore, those who do not like math, get confused easily when making simple calculations, or are generally opposed to number crunching should not apply. You can start with a bookkeeper to do all the books and financial reporting and then hire a CPA later to do your taxes during tax season. Both are huge benefits as your business grows and your finances get more time-consuming and complicated. Bookkeepers and accountants, although they may overlap, are two crucial and different roles in your business.
For the information to be reported as a financial statement, it needs to be identified, accepted, classified, and recorded. Learn more about bookkeeping, how it differs from accounting, the required qualifications, and bookkeeping jobs and salaries. For example, some small business owners do their own bookkeeping on software their accountant recommends or uses, providing it to the accountant on a weekly, monthly or quarterly basis for action. Other small businesses hire a bookkeeper or employ a small accounting department with data entry clerks reporting to the bookkeeper.
- To become CPAs (certified public accountants) they must meet their state’s requirements and pass the CPA exam which includes standard accounting principles and tax laws.
- The most important skills for a bookkeeper are payroll tax returns, customer service, and reconciliations.
- Bookkeepers handle many receipts and documents from a financial perspective.
- You will learn how to record costs, value inventory, calculate depreciation, analyze financial statements, and use software programs.
- Accountants tend to serve as a type of financial advisor for a business or individual, and most savvy business owners turn to an accountant for advice before making major financial decisions.
- What’s more, a bookkeeping certification will help you hone your skills and provide more in-depth job training.
No responses yet