How to Become a Bookkeeper: A Step-By-Step Guide

If you’re looking to make a career switch, there are few jobs as rewarding and stress-free as bookkeeping! More firms are using digital bookkeeping software, increasing the need for professional bookkeepers, making it a great career for number-lovers.

This blog post will walk you through becoming a certified bookkeeper quickly. We’ll cover topics such as certifications and licensing you will need, training options available to become proficient in bookkeeping methods, strategies to land your first job after certification or even how to start your own business if that works better for your life goals.

No doubt anyone can learn how to be a successful and impactful bookkeeper - so let's start learning the basics!

What Is A Bookkeeper?

As the bookkeeper, you manage all financial records. You have a lot of math to complete, from producing the records to validating their accuracy.

In mathematics, bookkeepers usually need more education than secondary school. Math is essential, but you'll also require bookkeeping software and other computer skills. Even if you have some knowledge of the industry before looking for a job, you will learn a lot from professional training.

Little time will be spent away from the office. The location of your bookkeeping work may determine whether you must visit your customers. Since most of your work may be done alone, there will be no group projects. Shouldn't they halt such initiatives anyway?

What Does a Bookkeeper Do

Bookkeepers are people who assist business owners in keeping track of their companies' financial records. This can entail things like tracking sales, income, and costs, checking statements to ensure they are accurate, verifying receipts, billing and account receivables, and processing payroll.

There are bookkeepers who work on employees, but working as an independent bookkeeper is becoming extremely prevalent, particularly in companies that are just starting out or are tiny. The majority of bookkeepers juggle several customer relations at once.

Bookkeepers generally need to possess a certain set of abilities in order to be successful in their jobs. We were able to pinpoint the most frequently required abilities for someone in this profession by looking through the applications that were submitted. We found that a significant number of applications used the phrases "detail-oriented," "integrity," and "computer abilities."

Bookkeepers specialise in helping businesses and individuals arrange their finances. Bookkeepers' duties vary per job, although they usually include these. Bookkeepers often do the following:

• Learn to use Excel, Quickbooks, Freshbooks, databases, and spreadsheets.
• Make entries in the relevant bookkeeping software pertaining to significant financial dealings.
• Maintain a close eye on and record the payments from customers.
• Utilise accounting software to maintain tabs on the costs of running your company.
• Find a solution to the inconsistencies that were discovered in the financial records.
• Generate financial reports
• Assist your customers in maintaining a record of their receipts, which serve as proof of their expenditures.
• Verify that the financial records are correct.
• Help your customers withhold and pay taxes every three months.

Self-employed bookkeepers who manage their companies may be asked to do more than their colleagues.

They will likely track their own income and expenses. They will also pay their own taxes and ensure their firm follows all rules.

Independent bookkeepers must know how to maintain their own books and promote their company to attract and retain consumers.

Bookkeepers Vs. Accountants

Bookkeepers are responsible for a wider variety of administrative activities, such as the ongoing upgrading and maintenance of financial operations and the preparation of financial reports.

It's more accurate to compare accountants to financial strategists. An accountant is a person who can assist a business owner in making sense of the numbers associated with their company, producing financial paperwork, and making preparations for the forthcoming tax period.

Essential Skills

Being a bookkeeper requires you to:

• Be able to read, write, and speak English.
• Acquire a knowledge of and stick to the basic accounting practises.
• Take care to avoid any errors in your work.
• Make use of software for word processing, spreadsheets, databases, and electronic mail.
• Utilise accounting software like QuickBooks or MYOB and software for controlling inventories if necessary.
• Keeping a record of one's financial dealings and conducting data analysis
• Perform effectively both in collaboration with others and on your own.

Job Duties

Bookkeepers are responsible for maintaining records of accounts and verifying the processes used to record monetary operations. You can work with accounting and bookkeeping firms and other companies. Working for yourself and contracting with firms or individuals is another alternative.

Usually, bookkeepers:

• Bookkeeping can be done manually or by utilising computer software. Keep track of all financial data.
• In addition to posting journal entries and settling accounts, maintaining general ledgers, preparing financial statements, and creating trial balances of the books.
• Perform the necessary calculations and preparations for writing checks for payrolls and utilities, tax, and other obligations.
• Fill out and send in all necessary government documents, including tax remittance papers, workers' compensation forms, pension contribution forms, and more.
• Generate tax returns for both individuals and businesses.
• Create any additional statistical, financial, or accounting reports that are required.

Do I Really Need Qualifications to Work as a Bookkeeper, or Is That Even Possible?

Many people use accounting and bookkeeping interchangeably. A bachelor's degree in accounting is usually required to work as an accountant. You may become a bookkeeper with a high school diploma.

How Do I Begin a Bookkeeping Career?

You only require a few fundamental abilities to get launched in bookkeeping. You do not need to attend a certain school or receive any specialised instruction to acquire these talents; nonetheless, you might find that you must hone them over time.

The following set of abilities can be beneficial to your career as a bookkeeper:

• You'll routinely prepare and keep precise customer financial records, so your math skills are essential. Although technology can handle most of the work, knowing a little math will help you determine if the program's figures are correct or if there is an error.

• This job requires computer abilities because you'll use accounting and bookkeeping software, and Excel.

• Skills in managing one's time effectively are essential, as you will frequently be moving from one client to another.

• Detail-oriented attention is required because one of your day-to-day responsibilities will consist of routinely recording monetary operations, where even a few dollars difference might create a problem. The information you enter into the system must be precise and compliant one hundred per cent of the time to make filing tax returns simple for your customer.

This job involves a lot of money and math. Try teaching yourself accounting and math to prepare for a career in numbers if you're not naturally excellent at them.

Think About Whether You Want to Be Your Own Boss And Work From Home

As a bookkeeper, you'll have the choice between the following three paths:

• Carry out your duties as an office worker.
• Put your bookkeeping skills to use as a freelancer.
• Start an accounting firm and work from home as a virtual bookkeeper.

If you want to start your own bookkeeping business in addition to working as a bookkeeper, there are a few things you should think about.

1. Being Your Own Boss

As a business owner, you must consider early costs. The following:

• Bookkeeping software
• Registering your business
• Marketing expenses

You will need to educate yourself on how to file your taxes as a freelancer if you run your personal autonomous firm.

This choice could result in fewer hours worked, allow you to select the number of customers with whom you collaborate, and give you the flexibility to collaborate with bookkeeping businesses, which could free up even more of your time.

2. Working as an Employee

This is an excellent path to take if you desire to work as a bookkeeper and possibly the owner of an accounting business in the future. It will provide you with considerable expertise in the real world. In addition, when starting a bookkeeping company, having prior work experience is quite helpful in the customer acquisition process.

Even if you detest the idea of telecommuting, it is possible to maintain your home-based employment status by seeking for bookkeeping positions that can be performed remotely.

Gain Bookkeeping Skills

While you are learning how to work as a bookkeeper, you will be required to start building a number of abilities related to bookkeeping, including the following:

• Accounting software proficiency
• Personal and business finance basics
• Basics of tax returns
• Financial reports

The excellent thing is that you can receive bookkeeping training without leaving the convenience of your own home. Online bookkeeping courses are affordable and plentiful, including free content. Additionally, many bookkeeping courses cover accounting software and financial reporting.

Even if it's not needed, a bachelor's degree might help you land a job. Only 12% of entry-level bookkeepers have a bachelor's degree, so having one provides you an advantage. Consider a bachelor's degree in finance, business, or accounting.

Get First-Hand Bookkeeping Experience

After receiving some instruction in bookkeeping, you will be prepared to begin bookkeeping work in the real world or to gain expertise in the field.

1. Finding Work as an Employee

Conduct a search on well-known job websites. Pay close attention to the position description so that you can determine which bookkeeping jobs can be done remotely and which must be done in-house.

An internship is another option for those interested in gaining important bookkeeping expertise and education on the job. After that, you can use various accounting software and tools at work. The chance to work for a company is one of many perks of internships.

You can locate job openings and internships by using employment boards, the networks available through your education, and by just inquiring around.

2. Finding Clients for Your Bookkeeping Business

Never undervalue the effectiveness of marketing that is spread through word of mouth. Almost every firm might profit from outsourcing its financial records. You should spread the message.

Branding yourself is yet another viable option for acquiring new customers. Follow these helpful hints:

• Narrow your emphasis by specialising in a particular sector of the market. If done right, this method will set you out from the crowd. Each sector of financial operations confronts distinct challenges, and concentrating on a particular company sector helps you become a professional faster.

• To illustrate your level of experience in bookkeeping, you should write blogs. In these blogs, you should answer common questions prospective customers might have regarding bookkeeping.

• Make use of LinkedIn and become involved in creating contacts and talking with prospective customers. You may show that you are a specialist in your field by making informative posts, interacting with prospective consumers and their posts, and optimising important parts of your profile.

Research Bookkeeping Certifications

You can take the certification exam if you have two years of bookkeeping experience and the relevant knowledge. To become a qualified bookkeeper, you must complete an exam.

Certification as a bookkeeper increases your reliability and earnings.

Consider looking into the Institute of Certified Bookkeepers as one of the possible organisations. They offer certifications in bookkeeping as well as education, both of which can lead to you being an official Certified Bookkeeper.

You might also become a Certified Public Bookkeeper by taking the online Bookkeeper Certification Exam the Australian Bookkeepers Association offers. This test will also enable you to get a bookkeeping certification so that you can become a Certified Public Bookkeeper. You may take this exam anywhere with reliable internet connectivity.

These exams will test your knowledge of corporate transactions, payroll taxes, financial statements, and more.

Increasing your trustworthiness can also be accomplished by earning software-specific certifications. These will assist you in proving to customers that you are a specialist in the accounting and bookkeeping software they use.

Who Needs Bookkeepers?

Bookkeepers are utilised in every conceivable type of commercial enterprise, not-for-profit organisation, and government department. Bookkeepers are an essential part of the administrative team of many large companies. It is common for accountants, CPAs, and tax preparers to collaborate with bookkeepers in order to serve their customers better.

Bookkeepers who work freelance or run their own bookkeeping companies frequently cite the wide range of clients' companies and organisations as one of the profession's most satisfying aspects.

Key Takeaways

Bookkeepers handle all reporting and financial analysis, which is crucial to business success. Bookkeepers have several career options in today's world of heightened reporting, accounting, and tax rules.

The following are the steps that must be taken to become a bookkeeper:

• Attempting to Complete High School Education
• Acquiring Knowledge and Skill
• Putting in Applications for Jobs
• Turning Your Hands to Freelancing
• Certification Ought To Be Taken Into Account

Thus, depending on where you want to start your bookkeeping job, you must determine whether to get an Associate's Degree, a Bachelor's Degree, or additional accreditations and licences to serve high-end clients. An Associate's or Bachelor's Degree allows you to get further certifications and licences.

In addition, when you perform your tasks and duties related to bookkeeping, employing accounting software will serve as your ideal assistant, allowing you to do the process more timely and effectively.

Content Summary

• If you're looking to make a career switch, there are few jobs as rewarding and stress-free as bookkeeping!
• More firms are using digital bookkeeping software, increasing the need for professional bookkeepers, making it a great career for number-lovers.
• We'll cover topics such as certifications and licensing you will need, training options available to become proficient in accounting methods, strategies to land your first job after certification or even how to start your own business if that works better for your life goals.
• In mathematics, bookkeepers usually need more education than secondary school.
• Math is essential, but you'll also require bookkeeping software and other computer skills.
• Even if you have some knowledge of the industry before looking for a job, you will learn a lot from professional training.
• The location of your bookkeeping work may determine whether you must visit your customers.
• Bookkeepers generally need to possess a certain set of abilities in order to be successful in their jobs.
• Make entries in the relevant bookkeeping software pertaining to significant financial dealings.
• Maintain a close eye on and record the payments from customers.
• Utilise accounting software to maintain tabs on the costs of running your company.
• Find a solution to the inconsistencies that were discovered in the financial records.
• Verify that the financial records are correct.
• Independent bookkeepers must know how to maintain their own books and promote their company to attract and retain consumers.
• Being a bookkeeper requires you to: Be able to read, write, and speak English.
• Acquire a knowledge of and stick to the basic accounting practises.
• Take care to avoid any errors in your work.
• You can work with accounting and bookkeeping firms and other companies.
• Working for yourself and contracting with firms or individuals is another alternative.
• A bachelor's degree in accounting is usually required to work as an accountant.
• You only require a few fundamental abilities to get launched in bookkeeping.
• You'll routinely prepare and keep precise customer financial records, so your math skills are essential.
• This job requires computer abilities because you'll use accounting and bookkeeping software, and Excel.
• This job involves a lot of money and math.
• Try teaching yourself accounting and math to prepare for a career in numbers if you're not naturally excellent at them.
• As a bookkeeper, you'll have the choice between the following three paths: Carry out your duties as an office worker.
• Put your bookkeeping skills to use as a freelancer.
• Start an accounting firm and work from home as a virtual bookkeeper.
• If you want to start your own bookkeeping business in addition to working as a bookkeeper, there are a few things you should think about.
• Working as an Employee - This is an excellent path to take if you desire to work as a bookkeeper and possibly the owner of an accounting business in the future.
• Even if it's not needed, a bachelor's degree might help you land a job.
• Only 12% of entry-level bookkeepers have a bachelor's degree, so having one provides you an advantage.
• Consider a bachelor's degree in finance, business, or accounting.
• After receiving some instruction in bookkeeping, you will be prepared to begin bookkeeping work in the real world or to gain expertise in the field.
• Conduct a search on well-known job websites.
• An internship is another option for those interested in gaining important bookkeeping expertise and education on the job.
• The chance to work for a company is one of many perks of internships.
• Branding yourself is yet another viable option for acquiring new customers.
• Follow these helpful hints: Narrow your emphasis by specialising in a particular sector of the market.
• Each sector of financial operations confronts distinct challenges, and concentrating on a particular company sector helps you become a professional faster.
• To illustrate your level of experience in bookkeeping, you should write blogs.
• You may show that you are a specialist in your field by making informative posts, interacting with prospective consumers and their posts, and optimising important parts of your profile.
• You can take the certification exam if you have two years of bookkeeping experience and the relevant knowledge.
• To become a qualified bookkeeper, you must complete an exam.
• Certification as a bookkeeper increases your reliability and earnings.
• They offer certifications in bookkeeping as well as education, both of which can lead to you being an official Certified Bookkeeper.
• You might also become a Certified Public Bookkeeper by taking the online Bookkeeper Certification Exam the Australian Bookkeepers Association offers.
• This test will also enable you to get a bookkeeping certification so that you can become a Certified Public Bookkeeper.
• You may take this exam anywhere with reliable internet connectivity.
• These exams will test your knowledge of corporate transactions, payroll taxes, financial statements, and more.
• Increasing your trustworthiness can also be accomplished by earning software-specific certifications.
• These will assist you in proving to customers that you are a specialist in the accounting and bookkeeping software they use.
• Bookkeepers are utilised in every conceivable type of commercial enterprise, not-for-profit organisation, and government department.
• Bookkeepers are an essential part of the administrative team of many large companies.
• Bookkeepers have several career options in today's world of heightened reporting, accounting, and tax rules.
• An Associate's or Bachelor's Degree allows you to get further certifications and licences.
• In addition, when you perform your tasks and duties related to bookkeeping, employing accounting software will serve as your ideal assistant, allowing you to do the process more timely and effectively.