Bookkeeping is a valuable skill that’s associated with steady employment. After all, virtually every industry – from the arts and education to finance and construction – requires accurate bookkeeping services. In 2006, the U.S. Bureau of Labor Services (BLS) projected that job opportunities in the industry would grow 12 percent through 2016. Bookkeepers who earn associate’s degrees and become certified through the American Institute of Professional Bookkeepers (AIPB) tend to have the best prospects for career advancement.
Bookkeepers are essentially junior accountants. They may have the knowledge to complete the majority of accounting tasks, but state regulations limit certain activities to accountants and certified public accountants. The trade-off is that only an associate’s degree is needed for many bookkeeping positions. Accountants, on the other hand, earn four-year bachelor’s degrees and often have additional certifications. Many people begin as bookkeepers and work their way up to accounting positions.
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Job Responsibilities
Bookkeepers create and maintain financial records. They manage accounting records such as expenditures, accounts payable, and profits and losses. Depending on the size of his or her employer, a bookkeeper could manage all the books for a company or just handle a sub-area of accounting tasks. For example, a bookkeeper’s primary responsibility might be compiling data from cashiers and preparing bank deposit forms.
Most bookkeepers work for small businesses and are responsible for the general ledger, which means that they record all debits and credits. They also typically prepare financial statements and other reports for managers. Other possible tasks include keeping track of overdue accounts, preparing invoices, and processing payroll checks.
Training and Education Requirements
Bookkeeping often involves on-the-job training. Nonetheless, at the minimum, employers expect a bookkeeper to have a high school diploma and experience with coursework relevant to accounting. Ideally, the bookkeeper has earned an associate’s degree in the field. An associate’s degree is generally earned in two years and online courses can expedite the process.
Typical bookkeeping course titles from community colleges include “Accounting Info for Management,” “Payroll Systems and Taxes,” “Federal Taxes,” and “Business English.” Furthermore, since modern bookkeeping is often computer-based, bookkeeping students typically study Microsoft Excel, QuickBooks, and other popular accounting software programs. Some bookkeeping programs also have specific modules or tracks. These let students specialize in bookkeeping for service-oriented businesses, merchandisers, and other specific types of employers or clients.
It’s possible to earn an associate’s degree in bookkeeping, then accept employment, and then complete a bachelor’s degree in business or accounting part-time. This opens the doors for career advancement. Furthermore, it provides a competitive edge; although a bachelor’s degree isn’t needed for most bookkeeping jobs, college graduates compete for these positions during tough economic times in order to gain work experience.
When evaluating a prospective bookkeeping school, a future student should ensure that it’s accredited by the Council of Higher Education Accreditation (CHEA) and will prepare graduates for the certification exam that’s offered by the American Institute of Professional Bookkeepers.
Salary and Wages
According to the U.S. Bureau of Labor Statistics (BLS), the median annual wages for bookkeepers in May 2010 were approximately $32,000. The bottom 10% of earners brought home $20,000 in the past year, and the top 10% reported earning more than $49,000.
Annual earnings for bookkeepers do not necessarily reflect a 40-hour work week. For example, BLS reports that in 2006 an estimated 24% of bookkeepers worked part time. Since bookkeeping workloads can vary seasonally, some people only work at tax time or during the winter holiday season. On the other hand, some people work full-time and also reap the time-and-a-half pay of seasonal overtime.
The government is a top-paying employer for this profession. Bookkeepers with the post office had an average hourly wage of more than $27 and an annual mean income of $56,430 in 2009. Bookkeepers with other branches of government, investment firms, railroad companies, and tobacco companies also reported relatively high earnings that year.
Certifications
A bookkeeper who chooses not to pursue a four-year college degree can earn the Certified Bookkeeper (CB) designation. Awarded by the American Institute of Professional Bookkeepers, the CB designation indicates that an individual has the skills and knowledge to effectively carry out all bookkeeping functions in accordance with accepted accounting procedures. This certification can only be earned after a candidate has gained at least two years of bookkeeping experience, passes a rigorous examination, and agrees to abide by an accounting code of ethics. Preparatory courses are offered by a number of community colleges and universities, and some exam training classes are even offered online.
Professional Bookkeeping Association
For more information, contact the American Institute of Professional Bookkeepers (AIPB). Their website, http://www.aipb.org, lists job opportunities, offers bookkeeping tips, has links to continuing education, and features other information of interest to bookkeepers and aspiring bookkeepers. AIPB is located at 6001 Montrose Rd., Suite 500, Rockville, MD 20852.
