How to Make a Living as a Bookkeeper
The large variety of work settings for a bookkeeper means the job offers more opportunity than many other types of occupations. All companies need bookkeepers and no matter where you go, a bookkeeper's educational requirements and duties are similar. Bookkeepers record financial transactions, create reports using those transactions, and reconcile financial accounts.
What Bookkeepers Do
Though most bookkeepers receive some on-the-job training, they often qualify for their jobs by taking accounting courses either in high school or college. Some bookkeepers have associate's degrees, though this is not required. Bookkeepers handle tasks such as recording sales, expenses, accounts payable, accounts receivable and other financial transactions. In addition, a bookkeeper maintains lists created by an accountant, such as the chart of accounts and company budget. Using accounting software, many bookkeepers run interim financial reports to keep decision makers up-to-date on the financial status of the company, though a CPA or accountant usually prepares the official end-of-year reports. In smaller companies, a bookkeeper might also handle additional tasks such as secretarial or office manager duties.
Bookkeepers who work in an accounting or bookkeeping firm usually have a minimum of two years experience and have taken college level bookkeeping courses. These bookkeepers either assist a CPA by helping to prepare records for reporting or they handle a client's day-to-day bookkeeping needs, including accounts payable and receivable.
In a small to medium-sized business setting, bookkeepers usually handle all the day-to-day financial transactions for the business. Tasks include creating invoices, paying bills, maintaining petty cash, running financial reports and reconciling financial accounts. They might handle additional tasks such as depositing money in the bank, maintaining petty cash, and taking inventory of supplies.
In corporate or large business settings, bookkeeping tasks are often split up among multiple bookkeepers. These bookkeepers are called clerks, and each bookkeeper's title reflects the portion of the bookkeeping tasks for which she is responsible. Common titles include accounts payable clerk, accounts receivable clerk and purchasing clerk.
Some full charge bookkeepers decide to work for themselves. To run your own bookkeeping service, you must have the proper equipment and an entrepreneurial spirit in addition to strong bookkeeping skills. Relevant degrees or certifications will help draw customers. Bookkeeping certifications include the Certified Bookkeeper Designation from the American Institute of Professional Bookkeepers, the QuickBooks Certification from Intuit, and the Microsoft Excel Certification from Microsoft. Having these certifications on your resume also make you a more attractive job candidate should you ever decide to become an employee again.
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