Bookkeeper Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a bookkeeper. Feel free to use our job description template to produce your own. We also provide you with information about the salary you can earn as a bookkeeper.
Who is a Bookkeeper?
A bookkeeper is a person who keeps financial records for an enterprise. Traditionally, they keep records in the form of a ledger or journal, sometimes colloquially called “account books”. Bookkeepers can work for a company or can be outsourced to individuals, and small groups, and can handle account books for multiple clients at the same time.
A bookkeeper is at his desk at the end of a fixed accounting period, such as a month or a quarter. The bookkeeper can hand over the books to an accountant, who is responsible for calculating tax payments to the IRS or issuing formal reports. Medium-sized companies are more willing to retain an accountant, and reduce bookkeepers solely to improve efficiency, while small businesses and companies may retain a bookkeeper and hire an accountant as needed to handle official profit and loss reports or taxation.
Legal tasks such as bookkeeping and accounting can become very complicated, especially as the company grows. A good bookkeeper can deal with the influx of information and are very flexible. In addition, he or she also needs to be good at getting along with people, because the bookkeeper works with people at all levels of the organization to ensure that the company can account for all expenses, from the hotel room for work-related meetings to the paper in the copy room.
In some cases, bookkeepers may engage in illegal activities, such as falsifying account book records, to change the company’s financial situation. This behavior is sometimes referred to as “counterfeiting”, which is unethical and illegal.
The basic function of a bookkeeper is to maintain the financial records of a company. This is a vital part of running a business, and the work of a bookkeeper is often highly specialized. Some bookkeepers specialize in a particular area, such as tax preparation or the creation of point-of-sale systems that capture daily transactions in a retail environment. Other types of bookkeepers specialize in internal business processes or other areas. A bookkeeper will typically have at least one area of specialization, which they will discuss with you at length.
The level of expertise required to become a bookkeeper varies greatly. Higher levels of expertise translate into increased efficiency. A novice has limited experience, while an intermediate bookkeeper has several practical experiences. An advanced bookkeeper is well-versed in specific applied theories and techniques. If you are hiring someone for a specific role, you can ask for their education and experience, and consider this in your hiring decision. Regardless of your level of expertise, however, it is important to understand the job’s specific requirements and how to assess the candidate.
While some people use the terms accountant and bookkeeper interchangeably, they are completely different roles. A bookkeeper’s primary function is to record the financial transactions of an entity. A bookkeeper is responsible for maintaining records on payroll, sales, and cash receipts. In addition, they keep track of travel expense forms and provide valuable insights that could prove crucial for any company. They are essential to any business, and they are indispensable to the success of a firm.
Bookkeeper Job Description
Below are the bookkeeper job description examples you can use to develop your resume or write a job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The jobs and duties of a bookkeeper include the following:
- Developing a financial transaction accounting system by establishing a chart of accounts
- Maintaining subsidiary ledgers by verifying, assigning, and posting transactions.
- Balancing subsidiary accounts through reconciliation entries.
- Summarising the transfer of the subsidiary ledger by maintaining the general ledger
- Balancing the general ledger by preparing a trial balance
- Maintaining historical records through archive files.
- Contributing to the team’s work by completing relevant results as needed.
- Maintaining accurate financial transaction records
- Updating and maintaining the general ledger
- Recording debits and credits.
- Managing accounts receivable functions, including the distribution of payments.
- Settling accounts to assert the accuracy of the transaction
- Monitoring discrepancies in the estimated budget
- Managing daily accounting transactions.
- Liaising with external accountants for annual accounts and tax inquiries.
- Preparing and submitting monthly or quarterly business activity statements (BAS).
- Managing accounts payable functions, including processing invoices for payment due.
- Handling payroll and other related payroll tasks.
- Processing investment.
- Receiving, reviewing, and issuing broker declarations.
- Tracking customer assets.
- Managing accounts receivable functions, including the distribution of payments.
- Processing customer mail.
- Preparing appropriate timetables and reports according to the requirements of customers and partners.
- Following accounting policies and procedures.
- Maintaining the chart of accounts.
- Maintaining the annual budget.
- Monitoring the level of office supplies and reordering as needed.
Essential Skills
- Basic accounting knowledge
- Understand accounting best practices
- Data entry skills
- High attention to detail
- Produce high-accuracy jobs
- Professional and organizational skills
- Contact degree or at least one year of experience
- Learn about Xero, QuickBooks, Zoho, Fresh Books, or other applications
- Knowledge of International Financial Reporting Standards
IFRS Standard International Financial Reporting Standards are International Financial Reporting Standards (IFRS), which consist of a set of accounting rules that determine how transactions are required to be reported in financial statements. Their purpose is to maintain the credibility and transparency of the financial world. The US Generally Accepted Accounting Principles (GAAP) generally accepts accounting principles and is a set of confirmed rules and procedures governing corporate accounting and finance or other accounting frameworks.
Qualifications
- High school degree or above
- Basic knowledge of accounting
- Proficiency in Microsoft Excel
In addition, because bookkeepers often deal with confidential information, employers have good judgments and decisions when looking for trustworthy people. Any aspiring bookkeeper must also pay attention to details, be well organized and ensure the accuracy of work.
How to Become a Bookkeeper
- Get a degree
Although many bookkeeping jobs only require a high school diploma, obtaining advanced accounting work knowledge through formal courses can serve bookkeepers well.
However, obtaining knowledge of accounting for a bachelor’s degree program allows you to explore similar topics and gain more knowledge through different accounting and auditing courses.
In addition, certain employers may require candidates to hold an associate degree or bachelor’s degree in business management and accounting.
Students in the associate degree program can participate in business mathematics, keyboards, economics, payroll accounting, tax procedures, and business law.
- Get the required training (Voluntary certification)
As a prospective bookkeeper, you can choose from several bookkeeping education methods. If you are looking for entry-level positions, you can register for an undergraduate and some online courses. Those seeking more advanced training can consider bachelor’s and master’s degrees in accounting.
However, students can learn how to update and maintain various records by registering in any of the following schools and can provide undergraduate and postgraduate courses in accounting, and have bookkeeping options respectively.
- New York University
New York University in New York State is a private non-profit institution offering bachelor’s, master’s, and doctoral degrees. Accounting professional courses and bookkeeper certificates were obtained by continuing with the College of Professional Studies.
The fee is $755. You can learn the principle of bookkeeping and master the basics of preparing financial statements, analyze business transactions from an accounting perspective, record them in the general ledger, and prepare period-end worksheets and financial statements.
- University of California, San Diego
The University of California, San Diego offers a bookkeeping course accredited by the American Association of Professional Bookkeepers (AIPB) to help you gain the knowledge and skills needed to become a certified bookkeeper.
The program will enable students to learn from AIPB workbooks, complete practical exams on a dedicated website, and take the AIPB certification bookkeeper exam.
The course fee includes a material fee of $500, and potential bookkeepers can also use this course as part of an accounting certificate program.
- Brigham Young University
This school offers a Bachelor of Accounting or Master of Accounting (MAcc). In the MAcc program, students will learn advanced courses in the field and develop skills in communication, collaboration, and decision-making.
The University’s Wharton School of Business offers bachelor’s, master’s, and doctorate degrees. In accounting. The course combines the principles of finance, economics, organizational research, and business. In addition, the enrollment rate and graduation rates are 9% and 96%, respectively.
Where to Work
In large companies, bookkeepers specialize in different aspects of financial management. Since all types of businesses require appropriate record management, there is a continuing need for qualified personnel to complete a range of different bookkeeper tasks.
Large companies tend to hire several bookkeepers to handle specific accounting and auditing duties. The accounts payable bookkeeper is responsible for paying and purchasing different bills and purchase orders on behalf of the company. The accounts receivable clerk ensures that customers are billed correctly and paid in time. Payroll bookkeepers ensure that all employees of the company are paid appropriately for working hours.
In small companies, bookkeepers can take on all accounting duties. The bookkeeper usually keeps the general ledger, which includes all the company’s financial records. Most bookkeepers specialize in electronic records, although some small companies still keep physical records and receipts. Employees must be proficient in effective and accurate data entry when managing electronic records and must demonstrate strong organizational skills when submitting paper records and receipts.
Some bookkeepers choose to work for private accounting companies, which handle the accounts and financial affairs outsourced by various companies. Such companies usually emphasize that bookkeepers must be very careful to maintain the confidentiality of multiple financial accounts and information. Many experienced bookkeepers are freelancers to provide services, contracting projects for various businesses at home. In addition to standard accounting duties, free bookkeepers must also manage all aspects of their home business.
In case you are planning to become a virtual bookkeeper, Some of the most popular platforms for finding virtual bookkeeping jobs include:
- FlexJobs
- Upwork
- Fiverr
- Facebook group-join a bookkeeping group.
You can see the available jobs, and as a reward, you can also learn how other people in the same industry conduct business and deal with customers.
Although it may take some time and energy at the beginning, it is worth investing in yourself to provide you with the freedom and flexibility you need while being able to earn a full-time income from wherever you choose to work.
Bookkeepers can also work in the following places:
- Private sector
This is the category to which all accounting agencies fall, whether large or small. The private sector comprises a large portion of the places where a qualified bookkeeper can work. Likewise, it also provides numerous financial services for a wide range of clients.
For example, large companies have many internal areas, among which bookkeeping plays an indispensable role. In both large and small private companies, professionals in this career perform different functions.
- Industry and commerce
Success from an industrial or commercial point of view is closely related to financial resources. Therefore, tasks such as creating budgets, cash flows, cost control, and accounting systems are indispensable.
In industry and commerce, positions such as bookkeeper, financial advisor, management accountant, or internal auditor are just a few of the positions where a qualified bookkeeper can work.
These professionals form an important part of the management team in the industry. Here it is important to highlight that to store and analyze financial information, the use of accounting software is very common.
- Public sector
Bookkeepers play an important role in managing daily accounting transactions of different public firms. These are greater responsibilities since you work with resources that are obtained through the financial progress of the country
Likewise, some other areas where a bookkeeper works are health entities, local government authorities, and central government organizations. They provide an important source of employment for career professionals throughout the country.
- Local Management
In local administration, bookkeepers require a wide range of professional skills and specialized knowledge of the roles and functions of local authorities. Some examples of these include transportation systems, street cleaning, and maintenance, basic services, etc.
Each of those fields requires knowledge of accounting and bookkeeping either to engage in direct management or complimentary advice. In these types of entities, professionals must adhere to a very strict work code.
Bookkeeper Salary Scale
The range of earnings for a bookkeeper is from $1,973 to $2,850 per month. To be eligible for a higher salary, some employers may require a four-year degree in business, accounting, or accounting-related fields. Computer literacy is also an asset, and knowledge of spreadsheet software and word processing is an advantage.
The salary for bookkeepers varies from one employer to another. Salaries are based on experience, and can also vary according to a bookkeeper’s educational background and location. If you’re planning to get a higher salary, consider pursuing a degree program. While a bachelor’s or master’s degree won’t guarantee you a higher salary, it will allow you to work at a higher level.
The salary for bookkeepers varies considerably based on location, industry, and experience. In the United States, entry-level bookkeepers earn an average of $28,275 annually. The median salary for entry-level bookkeepers is $22,620, while the highest-paid professionals are $33,930. The salaries of full-charge bookkeepers are expected to rise by 0% over the next ten years. However, if you want to earn more, you can take on more responsibilities or move to a related occupation.