How To Become A Bookkeeper

Bookkeeping is one of the most versatile career paths--nearly every industry and every business relies on a skilled bookkeeper to update and manage accounting records. The U.S. Department of Labor estimates that about 2.1 million bookkeeping, accounting, and auditing clerks crunch numbers in businesses across the United States. That 2008 figure is set to grow about 10 percent by 2018, signaling strong opportunity for trained bookkeepers.

What Does a Bookkeeper Do?

Bookkeepers balance the books on behalf of businesses of all sizes. As financial record keepers, they are responsible for tracking a company's accounts payable and receivable, including both expenses and revenue. They calculate profit and loss, and record financial data in such a way that is accessible to the company's financial analysts and decision makers. The scope of a bookkeeper's responsibilities varies based on the size and type of business. Small-business bookkeepers may have full control over the general ledger and financial reporting functions. At a large corporation, bookkeepers are likely to specialize in a specific area such as payroll or accounts receivable.

Key responsibilities of a bookkeeper include:

Recording transactions in a general ledger, balancing debits and credits to track profit and loss
Producing periodic (quarterly, annual) financial statements
Creating reports and summaries of key metrics for managers and financial analysts
Preparing bank deposits, including compiling cashier data, verifying receipts, and submitting cash, checks, and credit card receipts to the bank
Preparing payroll
Sending out invoices and pursuing overdue accounts
Making purchases as needed
Code financial documents to facilitate data storage and retrieval

Some specialty bookkeeping roles include:

Accounts payable clerk
Accounts receivable clerk
Auditing clerk
Payroll clerk

Some businesses may require additional bookkeeping services, such as the monitoring of loans and interest payments or compliance with regulatory requirements. Most bookkeepers today rely on computerized systems to fulfill bookkeeping responsibilities. These systems simplify data entry, provide calculations, generate reports, and securely store financial information. As a result, bookkeepers increasingly fulfill a broader mandate on the job, taking on payroll, billing and procurement responsibilities alongside financial recordkeeping.

What Are The Steps to Becoming a Bookkeeper?

As automation expands the role of the bookkeeper, education standards are rising. Traditionally, you could learn how to become a bookkeeper on the job, armed with no more than a high school diploma. Today, many employers expect at least some formal postsecondary training in accounting.

Take these steps to become a bookkeeper:

While still in high school, emphasize courses in mathematics, computer and office training, and business, if available. Communication skills can also help you thrive in a bookkeeping career.
Continue on to a college or vocational school program in accounting or bookkeeping. Most bookkeepers enter the workforce with a two-year associate's degree in the field.
Seek an internship while still in school to help you develop applied bookkeeping skills.
Practice using bookkeeping and accounting software. Many college accounting programs offer computer labs with access to common business software.
Apply for an entry-level job. Many bookkeeping jobs offer on-the-job training to new recruits in order to help you learn the procedures specific to the company.

These basic steps form a solid foundation for your career in bookkeeping. A combination of classroom learning and on-the-job applied training will introduce you to the procedures and software involved in reliable, accurate bookkeeping. In addition, you may learn more advanced accounting principles, including financial reporting and regulations relevant to your industry.

How to Become a Great Bookkeeper

You can learn how to become a bookkeeper in about two years, following a standard associate's degree curriculum. To reach the top of your profession and advance your financial career, however, you need to invest additional effort in your professional development. The following steps help you learn how to become a bookkeeper at the top of your game:

Certification. The American Institute of Professional Bookkeepers offers a voluntary Certified Bookkeeper (CB) credential. This certification demonstrates your proficiency in key bookkeeping functions such as payroll administration, balancing accounts, and following current accounting best practices. Certification requires two years of work experience, a passing grade on a written examination, and adherence to a code of ethics. You can find online courses to help you prepare for the Certified Bookkeeper exam.
Continuing education. Given the rapid advance of accounting and bookkeeping technology, it's critical to keep pace with the latest developments in your field. Continuing education courses help you stay current throughout your career.
Broader responsibility. Advance your career by taking on (and/or training for) broader responsibilities. You might expand into a supervisory role or choose a specialty niche to master within bookkeeping. A bachelor's or master's degree can support your promotion into accounting, financial analysis, or management roles.
Professional networking. Network with your peers and access professional development resources by joining professional associations. Choose from local groups or national associations like the American Institute of Professional Bookkeepers (AIPB).

Bookkeeping offers a solid career path with infinite opportunities for advancement. You can enter the field as a bookkeeper on the strength of your associate's degree. From there, take advantage of professional development training courses and certification to build your expertise and resume. Armed with these assets, bookkeepers can build their responsibility and career position, advancing into supervisory, analyst, or accounting specialist roles.

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