Money makes things happen, but managing it can be not easy. If you’re better at handling money, you make a living out of it by simply becoming a Bookkeeper.
This piece will guide you on how to become a bookkeeper in a short time, the training involved, cost, licenses, salary, and variety of bookkeeping jobs.
A lot of people use the terms accounting and bookkeeping interchangeably. However, bookkeeping is actually just a fraction of the accounting process which deals with the recording of financial transactions.
As you read on, you will discover what bookkeeping really is, and the skills and role of a bookkeeper in an organization.
If you are eager to become a bookkeeper, you can begin your career on a good note as we have highlighted the various schools that offer bookkeeping, their tuition, and the duration of the program.
Table of contents
- What is BookKeeping?
- Types of Bookkeeping
- What is the Importance of Bookkeeping?
- Steps on How to Become a Bookkeeper
- Top Schools with Bookkeeping Programs
- New York University in New York, NY
- University of California – San Diego
- Brigham Young University in Provo, UT
- What are the Challenges in Bookkeeping?
- Bookkeeper Salary and Job Outlook
- Conclusion
- References
- We also recommend the following:
What is BookKeeping?
Bookkeeping is the recording on a daily basis, of a company’s financial transactions including purchases, sales, receipts, and payments by an individual.
Similarly, a bookkeeper is a skillful person who produces financial records for businesses or organizations. The roles and responsibilities of a bookkeeper include the following:
Bookkeeping Tasks
- Payments expense to suppliers
- Loan payments
- Customer payments for invoices
- Updating financial records
- Creating financial reports
- Checking records for accuracy
- Posting financial records in computer programs
- Putting debits and credits to appropriate accounts
- Monitor the depreciation of assets
- Reimbursement of employees for business expenses
- Distribute petty cash to employees
- Withhold funds for employee benefits
- Process and file payroll taxes
- Order office supplies, products, and merchandise
- Record inventory levels
- Generate financial reports
Types of Bookkeeping
Single-Entry System
The single-entry bookkeeping system is used for businesses that have minimal financial transactions. This system records cash sales and business expenses only once. Therefore, there is no creation of an opposite account.
Basically, this system is not traditionally used for businesses that have accounts receivable, accounts payable, or many capital transactions. Bookkeeping under the single entry doesn’t match transactions to corresponding accounts.
Entries are recorded on one side of business books which can make tracing revenues and expenses difficult. Consequently, there is no balancing system under this method.
Double Entry System
Double-entry bookkeeping systems allow the recording of at least two accounts and are used for businesses that have complex transactions. this method is used by organizations that collect income through accounts receivable and receive merchandise and inventory on credit.
Basically, this method posts single transactions as an income or expense, then creates a second entry to trace the transaction to a corresponding account. Apparently, this accounting or bookkeeping system is recognized worldwide.
The double-entry system allows the accounting equation to maintain an equal balance in assets and liabilities.
Bookkeeping Software
Accounting software is an important tool for small businesses. These programs are relatively user-friendly and prompt you to enter information to complete and post your transactions.
Small business owners would prefer to spend all or most of their time delivering their products or services to customers rather than generating invoices or creating financial reports.
There are varieties of software, ranging from essential to professional capacities, and you can purchase the software on desktop, online, or cloud versions. Softwares like Sage Business Cloud Accounting takes care of your finances.
Virtual Bookkeeping
virtual bookkeeping uses computerized software to post financial transactions, review and update statements and reconcile accounts. A Virtual bookkeeper telecommutes instead of physically working at a client’s office.
Apparently, there is not much difference between regular bookkeeping and virtual services apart from the location. However, to become a virtual bookkeeper, you must meet the qualifications for a regular bookkeeping job in addition to having a computer and reliable internet.
What is the Importance of Bookkeeping?
Having an accurate handle on your business transactions, helps you to know your income, gains, and losses. below are the role and importance of booking in any organization.
- Keep a clear picture of your financial health and also a reliable measure of your company’s performance.
- Save time when you file
- Make sure you’re not missing deductions
- Limit the Pain of an Audit
- Makes tax filing less complicated
Steps on How to Become a Bookkeeper
Obtain a Degree
Although many bookkeeping jobs require only a high school diploma, gaining an advanced working knowledge of accounting through formal coursework can serve you well as a bookkeeper well.
However, obtaining a Bachelor’s degree program in accounting allows you to explore similar topics and build on your knowledge with more courses in accounting and auditing.
Additionally, certain employers may require candidates to hold associate or bachelor’s degree programs in business administration and accounting.
Students in associate degree programs may take courses in business mathematics, keyboarding, economics, payroll accounting, tax procedures, and business law.
READ ALSO: Top 10 Accounting Certifications in Canada | 2023
Get the required Training
Voluntary Certification
Top Schools with Bookkeeping Programs
As a prospective bookkeeper, you have several bookkeeping educational options to choose from. If you are seeking an entry-level position, you can enroll in an undergraduate and some online programs. while those looking for more advanced training can consider bachelor’s and master’s degree programs in accounting.
However, students can learn how to update and maintain various records by enrolling in any of the schools listed below which can offer undergraduate and graduate programs in accounting and have bookkeeping options respectively.
New York University in New York, NY
New York University in New York, NY is a private non-profit institution that offers bachelor’s, master’s, and Ph.D. programs in accounting as well as a bookkeeper certificate through the School of Continuing and Professional Studies.
With the fee of $755, you can learn the principles of double-entry bookkeeping, master the basics of preparing financial statements and analyzing business transactions from an accounting standpoint, record them in a general ledger, and prepare end-of-period worksheets and financial statements.
University of California – San Diego
University of California – San Diego offers a bookkeeping course that is endorsed by the American Institute of Professional Bookkeepers (AIPB) that will help you to get the knowledge and skills you need to become a Certified Bookkeeper.
Basically, the program will enable students to learn from the AIPB workbooks, complete practice exams on a dedicated website, and take the AIPB Certified Bookkeeper examinations.
The course fee includes $500 for materials and prospective bookkeepers can also take this course as part of the accounting certificate program.
Brigham Young University in Provo, UT
Brigham Young University is a private research university located in Provo. The school offers a Bachelor of Science (BS) in Accountancy or a Master of Accountancy (MAcc).
At BYU, Bookkeeping is offered under the financial accounting course and students learn financial and managerial accounting principles, basic accounting statements, processes, and management applications. In the MAcc program, students take advanced courses in the field and develop skills in communication, collaboration, and decision-making.
University of Pennsylvania in Philadelphia, PA
The University of Pennsylvania is a private research university in Philadelphia, Pennsylvania. The school Accounting Department features research studies in capital markets, securities analysis, and taxes.
The university’s Wharton School of Business offers a bachelor’s degree, master’s degree, and Ph.D. in Accounting. The curriculum incorporates principles from finance, economics, organizational research, and business. In addition, the school acceptance and graduation rate is 9% and 96% respectively.
Other online schools offering booking programs include:
| Schools | Program Duration | Tuition |
| Rio Salado College | 12 months | $1,942 |
| UCLA Extension | less than 12 months | $2,342 |
| U.S. Career Institute | 4 months | $585 |
| Penn Foster Career School | 5 months | $79 per credit hour |
| Lone Star College | 4 months | $49 per credit hour |
| University of Utah | 12 months | $1,499.00 |
| University of Georgia | 6 months | $2,816 |
| Kennesaw State University | 3 months | $2,195 |
| Loyola Marymount University | 6 months | $1,100 |
What are the Challenges in Bookkeeping?
Bookkeeping jobs can often be very complicated. Getting invoices made by your accounting division and sending them on a regular basis, and keeping track of receipts and maintaining them can be very challenging. below are some of the challenges of bookkeeping.
- Accounts Receivable and Collections
- Constant Monitoring of Finances
- Cash Flow Problems
- Irregular Financial Reports
- No Record of Minor Expenses
- Time Management
- Unorganized Paperwork
- Poor Payroll Management
- Not Closing Your Accounts
- Fraud Detection
How to manage challenges of bookkeeping
- Analyze your bills carefully
- Be prompt at receiving payments
- Record payment for your products and services so that you can cover your expenses as well as give you some profits.
- Reduce manual payments
- Obtain in-depth financial reports
- Use of bookkeeping software in generating timely and accurate salaries for your employees.
- Strategize your tasks and pick one at a time as per the priority.
Bookkeeper Salary and Job Outlook
Data from the US Bureau of Labor Statistics show that the median annual wage for bookkeeping and auditing clerks was $40,240 in May 2018.
Bookkeeping is so widely valued in businesses and organizations, high concentrations of jobs may be found in large metropolitan areas that are financial centers.
However, changes in technology that allow business owners without financial backgrounds to handle their own bookkeeping jobs will affect the employment of bookkeepers.
The drop in available positions means bookkeepers may need more experience and higher qualifications to distinguish themselves from future job candidates. BLS projects the employment of bookkeeping, accounting, and auditing clerks to decline by 4 percent from 2018 to 2028.
Conclusion
Becoming a bookkeeper is an ideal career for people passionate about helping businesses and organizations grow by managing their finances effectively. A bookkeeper can work in almost any industry including banks, companies, schools, and even hospitals.
While accountants are responsible for interpreting, classifying, analyzing, reporting, and summarizing financial transactions, a bookkeeper’s role is to perform the bookkeeping activities in the company.
However, before you can become a certified bookkeeper, you need to first earn a bachelor’s degree in accounting or business administration at an accredited college or university. Secondly, you have to get the necessary training and also register with the bookkeeping agencies in your discipline.
In addition, a bookkeeper must be very skillful in mathematics, and computer science, pay attention to detail and have an understanding of the bigger picture in other to carry out the bookkeeping duty effectively.
References
- study.com: Top Schools for Bookkeeping
- https://www.accounting-degree.org/affordable-online-bookkeeping-certificate/
- fbc.ca: 6 Reasons Bookkeeping is Important to your Business
- https://www.wikihow.com/Be-a-Bookkeeper
- quora.com: What are the types of bookkeeping
- https://smallbusiness.chron.com/types-bookkeeping-48070.html
- smallbusiness.chron.com: Types of Bookkeeping
- careerbuilder.com: The career of a bookkeeper
- Bookkeeping, Accounting, and Auditing Clerks
- techjockey.com: How to Overcome These Biggest Challenges in Bookkeeping
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