How to Hire a Bookkeeper

Some provide free and low-cost resources, while others may be more expensive but provide more knowledge. Candidates must take a four-part multiple-choice test and agree to follow a code of conduct. Explore programs of your interests with the high-quality standards and flexibility you need to take your career to the next level. The CPB is certified by the National Association of Certified Public Bookkeepers (NACPB) and is the more accessible of the two certs. Merchant processors, loans, and lines of credit may also be taken into account. They make sure everything is compliant with accounting regulations and standards.

What is the difference between accounting and bookkeeping?

In doing so, you can get a good idea as to the range bookkeepers charge for services. Overall, this is a very low-cost online business idea, and freelance bookkeepers make https://www.quick-bookkeeping.net/pay-stub-meaning/ $20 to $40/hour on average. Modern accounting software is the repository of all financial transactions for your company and can generate requisite reports in real-time.

Questions About How to Become a Bookkeeper

Other elements are completed at certain time periods as necessary to complete a business task. With fewer geographic constraints, we have a larger talent pool than ever to draw from. We can find remote bookkeepers who are the right match for your specific needs. And we can help you with the hiring process from beginning to end. Take time to research compensation trends for bookkeepers before you launch a job candidate search.

You feel like you don’t have time

But how do these job duties translate as benefits for your business? A bookkeeper can help ensure your business finances are organized and lets you focus on running and growing your small business. Bookkeeping covers many different industries, so it’s important to make sure that the person you hire is familiar with the industry your business operates in.

Second Career Path: Get Experience

You want to make sure you get your job posting in front of as many qualified applicants as possible. Since the information gathered in bookkeeping is used by accountants and business owners, it is the basis of all the financial statements generated. Most accounting software allows you to automatically run common financial statements such as an income and expense statement, balance sheet and cash flow statement. Business owners https://www.quick-bookkeeping.net/ or accountants can then use these statements to gain insight into the business’s financial health. The best bookkeeping services take care of basic bookkeeping tasks, like reconciling bank statements, inputting transactions and generating financial reports. You should be able to directly call or message your bookkeeper with questions whenever necessary, and some services offer add-ons for tax planning and payroll.

What tools do bookkeepers use?

Even if your company doesn’t have an office in one of these locations but you’re open to hiring someone remotely, you’ll need to comply with these laws. However, if you’re hiring a freelance bookkeeper, you may not have to consider such compliance laws—more often than not, these only apply when hiring an employee. According to the American Institute of CPAs, certified public accountant (CPAs) financially advise individuals, big companies and small businesses to help them reach their financial goals. For example, they can consult you on taxes and other accounting needs.

Our Salary Calculator provides real-world salaries by location and can help you determine what level of compensation bookkeepers in your city or state might expect to earn. Bookkeepers in the United States are not legally required to obtain a license, but they can participate in several voluntary certification programs. It’s best if you can find someone who uses the same accounting software as your accountant. Whoever you hire needs to be trusted with the everyday details of your business finances. And you’d hire an accountant to handle official reporting and high level business advice. No cap on meetings with your bookkeeper; QuickBooks says small-business owners usually schedule one or two video appointments per month.

And our recruiters are well-versed in helping companies hire remote workers. Bookkeepers are expected to do the day-to-day recording everything you need to know about the income statement of receipts, invoices and other transactions. Hiring an accountant will provide business insights based on bookkeeping information.

1. It involves courses that cost anywhere from $1,500-$2,500, and there’s also the cost of certification exams, which can run $100-$500.
2. Proper planning and scheduling is key since staying on top of records on a weekly or monthly basis will provide a clear overview of an organization’s financial health.
3. It’s similar to a bookkeeping firm, except more affordable, since automation cuts the bulk of manual work.
4. Bookkeepers are needed in just about every industry and business, both large and small.
5. A freelance bookkeeper is the most affordable option if your finances are simple, and you’re okay with your bookkeeper not being available for you every single business day.
6. However, some bookkeepers can earn less (around $37,000) or more ($50,000 and above) depending on their bookkeeping skills, experience, location, niche, and the quality of their clients.

Becoming a certified bookkeeper enhances your credibility and increases your earning potential. In 2023, the average bookkeeper in the United States earned an annual salary of $43,748. However, depending on a bookkeeper’s location, niche, and clients, they may command a higher salary, sometimes reaching $50,000 per year or above. Learning how to become a bookkeeper is also a great career choice if you like the idea of working remotely. When manually doing the bookkeeping, debits are found on the left side of the ledger, and credits are found on the right side.

However, some bookkeepers can earn less (around $37,000) or more ($50,000 and above) depending on their bookkeeping skills, experience, location, niche, and the quality of their clients. Maybe you enjoy the idea of being your own boss, or you’re still wondering if it’s for you. One organization to look into is The American Institute of Professional Bookkeepers. They provide bookkeeping certifications and training, which can officially make you a Certified Bookkeeper. Once you’ve learned how to become a bookkeeper and have two years of work experience, you can become a certified bookkeeper.

Accountants use the records a bookkeeper provides and their own expertise to help build budgets, assess finances, and make business decisions. Accountants have higher education requirements and may have training in bookkeeping roles. An undergraduate degree will take 2-4 years and can pursue higher-paying positions in the field than those without a credential. Professionals who learn through on-the-job training can grasp essentials after about six months in entry-level roles. How much you’re charged will depend—as it does with a freelance bookkeeper—on how much time it takes for someone to do your books, and whether you have catch-up bookkeeping to be completed. Following are some of the responsibilities and tasks a bookkeeper takes on.

You might also want to think about what you really need as a business to see if their services are in line with your needs. If you feel like you never have time to get your books updated and it’s taking up resources to do it yourself, a bookkeeper can help reduce the time you spend on financial tasks. You may also feel like it’s time to take a break from the grind and focus on other things that your business or clients need. Accountants have more education under their belts, and with additional qualifications come higher rates. Bookkeeping requires fewer skills and work, so hiring a bookkeeper instead of an accountant can save you money in the long run.