Modern bookkeepers often go beyond daily transaction recording to provide higher‑level support. They help create and manage realistic budgets, identifying trends and making recommendations that enable better planning and cost control. Through financial analysis, they compare actual results to forecasts, highlighting areas for growth or improvement.
- Industry-specific knowledge often means they’ll be familiar with relevant financial details and common challenges.
- Every organization has financial data and operations that need to be monitored and recorded.
- Therefore, while the bookkeeping role requires close attention to detail and a high level of accuracy, there’s less responsibility than in an accountant’s role.
- With QuickBooks Live for bookkeepers, you can get peace of mind and personalized expertise focused on your success.
Even a small error in the books can cascade into larger problems, from misstated revenues and miscalculated expenses to costly penalties or audits. A professional bookkeeper understands the rules and best practices, making sure transactions are properly classified, reconciled, and aligned with regulations. This vigilance doesn’t just save money, it provides peace of mind that your financial foundation is solid and compliant.
- In the U.S., virtual bookkeepers earn around $24 per hour on average, translating to $45,000–$65,000 annually.
- A good bookkeeper never cuts corners, and they are indispensable to small business owners who want to spend time growing their business, instead of maintaining it.
- And, when it comes time for the hiring manager to make a decision, each and every one of those things can matter.
Sure, they share some duties with accountants or accounts payable employees; there’s no doubt about that. But accountants tend to be more advanced, and accounts payable professionals are more focused. While that image may have been accurate many decades ago, that isn’t necessarily the case today. Now, bookkeepers make use of modern tools (as well as some classic ones) to track a company’s financials. They are tech-savvy, number aficionados, and they are a critical part of nearly any company’s operations.
After much deliberation and a large salary cut, I moved to a startup and fell in love! I was also surprised that what I came to build wasn’t already built. It made me think, “Hmm, maybe there are other companies out there that need my help.” This eventually led to the start of my business. I didn’t go to what felt like the traditional route of going to a Big Four accounting firm. I remember talking to bookkeeper the manager at my first job before they hired me. Manufacturing bookkeepers need to accurately recognize goods throughout the production process, including raw materials, work-in-progress, and finished goods.
How Much Does It Cost to Hire a Bookkeeper?
Customers schedule an appointment to have a bookkeeper review their transactions, and multiple schedules are available to choose from. You will have access to a client management portal, and can communicate with customers through video conferencing and messaging. Bookkeepers are responsible for recording financial transactions related to the business. While most bookkeepers work with businesses, some individuals may also choose to hire a bookkeeper to track personal finances.
It is an essential business function and can be a worthwhile career to explore if you’re detail-oriented, organized, and trustworthy. When you hear the term bookkeeping, you may wonder what responsibilities and experience are required. Unlike an accountant or CPA (certified public accountant), who requires a bachelor’s degree and a license, bookkeepers fall under the umbrella of financial accounting.
Certified public bookkeepers have mastered concepts like depreciation, payroll, and adjustment entries. Accountants on the other hand, go through rigorous training and standardized exams to become certified public accountants. Our intuitive software automates the busywork with powerful tools and features designed to help you simplify your financial management and make informed business decisions.
The Importance of Bookkeeping for Your Business
Bookkeepers regularly, usually monthly, compare the company’s financial records to bank and credit card statements to make sure the transactions and balances match. If something doesn’t line up, they figure out why—maybe there was a bank error or missed transaction—and fix the company’s books. According to the QuickBooks Entrepreneurship in 2025 report, over 34% of business owners have made errors when filing taxes. Follow these 6 steps to get your financial records tax-ready and comply with IRS requirements.
Payroll management can fall under the umbrella of human resources, get outsourced to a third party or be managed by a company’s finance department. Small businesses may keep payroll duties in-house and assign them to a bookkeeper for budget reasons. In this scenario, you could expect to calculate employee salaries, deduct taxes and withholdings and ensure employees get paid on time. You can also learn the skills you need to be a proficient bookkeeper through self-study, internships or experience, Stephens said. Taking courses in bookkeeping, payroll and online accounting systems can prepare you for a bookkeeping role. The oil and gas sector has specialized accounting rules to organize expenses, oil reserves, and taxes.
Every transaction, from sales and payments to expenses and deposits, is accurately recorded and organized. This meticulous attention to detail ensures owners have a clean, up‑to‑date ledger, making it easy to track performance and spot trends. Without this discipline, even the best‑run businesses can lose clarity and control over their numbers. Bookkeeping is vital to your business finances, but tasks like tracking sales and logging expenses can steal time you’d rather spend growing your business.
Relevant Skills and Knowledge
Get reliable reports from expert bookkeepers—delivered on time, every month. Bookkeeper360 is your one-stop shop for bookkeeping, tax strategy, payroll, and Fractional CFO support that scales with you. NACPB produces America’s most qualified bookkeepers providing America’s #1 bookkeeping education, certification, experience, and license.
And while keeping accurate records helps ensure clearer financial insights and smoother tax seasons, it’s easy for small business owners to fall behind or make errors. The median annual income for bookkeeping, accounting, and auditing clerks was $45,860 in 2022. However, the actual salary varies substantially depending upon factors such as location, level of education and experience, industry, and job responsibilities. For instance, bookkeepers in the finance and insurance sectors tend to earn more than those in other industries. Similarly, bookkeepers with a degree and professional certification can expect to make more than those without formal qualifications.
Book a demo today to see what running your business is like with Bench. However, you want to at least include education, experience and licensing requirements in your job description. You can work with other bookkeepers and tax experts to share and expand your knowledge. As you learn more about bookkeeping, use the opportunity to build or strengthen key technical and workplace skills needed to be successful in this role. Now, it isn’t just experience that influences how much you’ll make.
While learning the ropes of bookkeeping can take some time, almost anyone with a head for numbers and a propensity for data entry can learn this skill with practice. Bookkeepers track the money owed to the business (accounts receivable) and the money the business owes to others (accounts payable). Although the terms are typically conflated or used interchangeably, bookkeepers and accountants have distinct roles and obligations. Bookkeepers are, essentially, on the front line; they maintain an account of how finances flow into and out of an entity from day to day. As a business grows, the complexity of its financial picture grows too. If recording transactions, reconciling accounts, or chasing down receipts is pulling focus from higher‑level priorities, it’s a sign it’s time to hire a bookkeeper.
