Are you interested in learning how to become a bookkeeper? This guide will walk you through the first steps toward a career in bookkeeping. This guide provides an in-depth overview of the bookkeeping skills you should learn, plus training options, educational requirements, and career paths.
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Bookkeeping continues to be a critical need for businesses, even as trends like AI reshape the landscape of the accounting industry.
So, even as accounting professionals begin applying the power of AI to bookkeeping tasks, the need for smart, dedicated humans in the industry is still as relevant as ever.
A bookkeeper is responsible for recording a company’s financial transactions, including sales, purchases, receipts, and payments. This process involves maintaining a detailed and accurate ledger, which helps ensure the business’s financial health and compliance.
Beyond transaction recording, bookkeepers often handle tasks such as reconciling bank statements, processing payroll, and preparing invoices. They also support accountants by organizing financial data and verifying that all records are up-to-date and accurate. For a detailed explanation, check out our article on a bookkeeper’s responsibilities and duties.
Want to know how to get started as a bookkeeper? There are a few steps you need to take to achieve your goal.
Building a successful career in bookkeeping requires honing a set of essential skills, including:
Bookkeepers usually only need a high school diploma unless employers specify additional requirements. However, taking courses in accounting, finance, and business administration can give you a better understanding of financial principles and make you stand out from other job candidates.
Many community colleges and universities offer certificate and associate degree programs designed for aspiring bookkeepers. A certificate or associate’s in bookkeeping can open the path to many entry-level bookkeeping and accounting jobs, with faster entry into the workforce compared to most bachelor’s degree programs. Online bookkeeping certification programs that build bookkeepers’ skills with popular accounting software like QuickBooks are also widely available.
You might also choose to begin with a bachelor’s degree (BA or BS) in accounting. While this is typically a four-year degree, you’ll gain skills that will qualify you for accounting jobs beyond bookkeeping, as well as giving you many of the educational credits you’ll need if you want to get your Certified Public Accountant (CPA) license later.
Whether it’s QuickBooks or another popular bookkeeping software, modern bookkeeping requires a solid understanding of these digital tools. Accounting software streamlines bookkeeping tasks, making it easier to record transactions, manage payroll, and generate financial reports. Mastering these tools also makes you a more attractive candidate to potential employers.
Consider exploring tutorials and online bookkeeping courses that provide step-by-step instructions on using these programs. Practical experience is invaluable, so take advantage of free trials or practice versions to get comfortable with the software's features.
While formal education is helpful, you need to apply that knowledge in a real-world setting. That’s where internships and entry-level bookkeeping jobs come into play. These opportunities allow you to work alongside experienced professionals, learn industry best practices, and get comfortable with daily bookkeeping tasks.
With internships, you get hands-on experience in managing financial records, processing transactions, and using accounting software. Entry-level positions, like a junior bookkeeper or an accounting assistant, help sharpen your skills further and build your confidence in handling more complex tasks.
Obtaining additional education and certifications demonstrates your commitment to continuous learning and excellence, which can help boost your credibility and open up new career prospects in more complex, higher-paying accounting roles.
Education is one common path to climbing the ladder in bookkeeping. A bachelor’s degree in accounting or finance is a common way to start a successful, fulfilling bookkeeping and accounting career. These programs offer in-depth knowledge of financial principles, accounting practices, and business management, and many professional accounting jobs require at least a bachelor’s. For those interested in the business strategy side of accounting, a Master of Business Administration (MBA) degree can be a logical next step and eventually might become a gateway to positions such as chief financial officer (CFO).
Getting certifications is also a great way to boost your credentials and expertise in bookkeeping. Programs like the Certified Bookkeeper (CB) from the American Institute of Professional Bookkeepers and the Certified Public Bookkeeper (CPB) are excellent options to consider.
The financial world is always changing. That’s why being informed about the latest trends and regulations can help you stay ahead of the curve. Attending workshops and webinars and taking advanced courses are great ways to continue learning and growing in your field.
To become a bookkeeper, you need to meet a few specific educational and skill requirements. You can also improve your qualifications by obtaining additional certifications and advanced education. Here's a breakdown of the essential and optional qualifications to help you succeed in this profession:
High school diploma or equivalent
Generally, you’ll need at least a high school diploma or an equivalent like a GED certificate to begin your career path.
Technical skills
As mentioned before, being well-versed in mathematics and becoming proficient in software like QuickBooks and Excel is a must for any inspiring bookkeeper.
Fundamental accounting knowledge
A strong foundation in accounting will better prepare you to handle the complexities of bookkeeping. This means understanding debits and credits, the accounting equation, and how to prepare and interpret financial statements, among other things.
If you’re wondering how to get certified in bookkeeping or how to become a Certified Bookkeeper, the process usually involves completing coursework, passing an exam, and meeting certain experience requirements. You can also consider getting specialized certifications like QuickBooks Certification or Certified Payroll Professional (CPP) to bolster your qualifications.
For those who are committed to bookkeeping and accounting as a profession, getting an associate’s degree or bachelor’s degree in accounting is a smart move. These degrees teach the foundational skills of the accounting profession and are prerequisites for the majority of jobs in accounting, including CPA licensure. Many college accounting programs will also give you the chance to network with people in the accounting field who can help you with professional advice and even job and internship opportunities.
At minimum, any bookkeeper should know how to use:
Depending on your responsibilities and areas of expertise, you may also need to familiarize yourself with other types of software, such as:
The time it takes to learn bookkeeping can vary depending on several factors, including your prior experience with finance, the depth of knowledge you want to achieve, and the learning path you choose. Generally speaking, it can take anywhere from a few months to a few years, especially if you pursue a formal education.
Here are some certifications to consider:
Yes. Many people learn bookkeeping skills on their own, from small business owners who do their own bookkeeping to freelance bookkeepers who pick up the skill to earn extra income. Numerous educational resources are available online that teach the basics of bookkeeping for small businesses, including a full course of short videos on how to use QuickBooks for essential bookkeeping tasks.
Joining a professional organization provides access to valuable resources, networking opportunities, and continuing education. Here are some to consider:
Once you become a bookkeeper, you'll find various career paths to explore. Whether you prefer working for a company, freelancing, or specializing in a particular area, there are plenty of options to suit your interests and skills. Here are some types of bookkeeping jobs to consider:
This is your standard bookkeeper — a professional who manages the essential day-to-day financial tasks of a business, including recording transactions, maintaining ledgers, reconciling bank statements, and managing accounts payable and receivable.
Full-charge bookkeepers typically handle all the accounts for a small to medium-sized business. They may also prepare for audits, ensure the business complies with tax rules, and give financial reports to management to help with decision-making. A full-charge bookkeeper often works closely with the company's accountant or CFO, and in smaller companies, they might be the only accounting professional.
As a payroll bookkeeper, your primary responsibility is to manage and process employee payroll, which involves calculating wages, withholding taxes, and ensuring timely and accurate payment to employees. You’ll also handle payroll records, address payroll discrepancies, and stay updated on tax laws and regulations.
This professional keeps track of a company's inventory by recording and managing the quantity, cost, and location of inventory items.
When individuals and businesses need to prepare and file their tax returns, they can turn to a tax preparer. They're well-versed in tax laws and regulations and use that knowledge to make sure clients follow all the requirements while getting as many deductions and credits as possible.
A freelance bookkeeper provides bookkeeping services to businesses on a contract basis. This gives businesses the flexibility to get bookkeeping expertise without the commitment of a full-time employee.
A virtual bookkeeper does bookkeeping remotely using tools like Quickbooks to manage a client’s financial records. This allows for flexible working arrangements and the ability to serve clients from different locations.
According to the U.S. Bureau of Labor Statistics, the median salary of bookkeeping, accounting, and auditing clerks in the U.S. is approximately $47,000 per year. Many bookkeepers also eventually upskill into professional accounting roles, which the BLS lists as having a median salary of nearly $80,000 per year (and typically requiring a bachelor’s degree).
A bookkeeper’s income depends on factors such as their experience, education, certifications, location, and specific duties. Research the average salary estimates in your area to see if bookkeeping offers a comfortable income for your needs, and consider expanding your credentials if you want to set your sights on higher compensation.
Bookkeeping tasks are an essential part of running any business, or any organization that has a budget at all, even a nonprofit. As business continually changes and focus on financial compliance increases, accurate bookkeeping will only become more important. Thus, bookkeeping skills will always be a highly transferable and desirable set of skills, especially for bookkeepers who stay current with the latest technologies like cloud-based accounting software.
In addition, the base-level skills you’ll learn in bookkeeping are often a gateway to a lucrative and satisfying career in accounting. As we noted earlier, accounting is an expanding field where many professionals are able to command lucrative salaries, and bookkeeping is a common stepping-stone into this exciting and in-demand field of jobs. If you want the freedom to work in a variety of environments and skills that will transfer in many different jobs, bookkeeping could be for you.
Whether you're looking to get started as a bookkeeper or you’re interested in advancing your career through certifications and continuing education, you have plenty of options to explore.
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