What Does a Certified Bookkeeper Do, and Do You Need One?

A certified bookkeeper has earned professional certification credentials to demonstrate their competency in managing a company's finances. A bookkeeper's responsibilities usually include billing, invoicing, and organizing and reporting all financial transactions. In this role, you'll ensure your company’s finances are accurate, which helps you manage cash flow and meet all financial debts. 

Smaller companies may employ a part-time certified bookkeeper to periodically manage the business’s finances. In comparison, larger companies may need the support of a full-time bookkeeper to keep their financial records in order. 

Learn more about what a certified bookkeeper is, what the job duties look like, and the difference between a bookkeeper and an accountant.

What is a certified bookkeeper?

A certified bookkeeper creates and maintains a company’s financial records and has received certification from a competent organization. They are responsible for organizing financial transactions and ensuring the records are accurate so businesses can make key financial decisions. 

Having a certification in bookkeeping proves to employers that a bookkeeper has skills and knowledge in accounting, including preparing financial statements, utilizing proper software to track finances, and managing accounts payable. Not only does a certified bookkeeper record numbers, but they also analyze them. Although they handle the finances of a company, certified bookkeepers are not responsible for making financial projections or assessing risks. 

Read more: What Is Business Accounting? (And How to Manage Yours)

Certified bookkeeper job responsibilities

Many certified bookkeepers work closely with the accounting department to create financial reports, meet legal requirements, process accounts payable and receivable, and manage tax information. After gathering and organizing all the pertinent financial information, certified bookkeepers pass it to accountants.

Daily tasks of a certified bookkeeper

While bookkeeping has many responsibilities, some general tasks, depending on the size of the company, might include:

• Recording daily transactions and ensuring they are in the correct ledgers

• Creating and processing all invoices

• Maintaining all books to ensure bank reconciliation is accurate

• Preparing tax information for filing and potential audits

• Processing payroll 

• Paying bills for the organization 

Like many industries, specific software is available to help with the financial needs of small and large businesses. Bookkeeping software for a small business helps with almost all of the organization's basic accounting needs and can automate certain processes to save the bookkeeping staff time. Larger organizations may have more complex financial information, so custom software systems that fit their needs are available. 

Read more: Bookkeeping Services: Tasks, Tools, and More

Who needs a certified bookkeeper?

Any business can use a bookkeeper to help maintain its financial health. In addition to basic financial skills such as billing and invoicing, a good bookkeeper has the ability to foresee the impact of day-to-day operations on financial inflow and outflow, helping the company stay on track. A certified bookkeeper has the tools to collect and clearly present data to help managers make informed decisions regarding the best use of their finances. They can also assist in analyzing the allocation of funds to help keep your business running smoothly.   

Depending on the size of your company, quarterly reporting may be enough, while some businesses may only need their financial information at the end of the year when preparing for taxes. Because larger businesses require more financial help, you might consider employing a full-time certified bookkeeper or outsourcing monthly or quarterly professionals. While you are busy running your company, they can help with financial statements, management accounting, KPIs, forecasting, and planning. 

Some smaller companies may only need part-time bookkeepers to maintain and organize financial transactions, prepare taxes, and keep solid records. 

Benefits of hiring a certified bookkeeper

If you manage a business, hiring a certified bookkeeper offers many benefits. They understand the link between how a company operates and its finances. This allows them to help you make informed decisions regarding how your company distributes its cash flow. They can also interpret the financial data they collect and present it effectively while assisting decision-makers with any needed data analysis. 

As your business grows, the financial responsibilities become more complex, and it can be beneficial to hire a professional who can keep on top of financial standards and easily manage cash flow issues. However, whether you're a small start-up or a seasoned organization with many employees, hiring a bookkeeping professional can save you time so that you can focus on other responsibilities. 

Read more: Bookkeeping Certification: What It Is and How to Choose the Best One for You

Differences between a bookkeeper and an accountant

The main difference between a bookkeeper and an accountant is that a bookkeeper primarily focuses on basic daily finances. In contrast, an accountant handles more complex tasks, monitors the company’s finances, and advises business owners on how to make the best use of their financial assets.  

For example, a bookkeeper might handle bank reconciliations, look for errors in invoices, and record monthly transactions, while an accountant might prepare your corporate tax returns and conduct regular audits. Bookkeepers in larger companies may report to an accountant who will use the information for strategic planning.

A person typically needs a bachelor's degree, to become an accountant, while a college degree is not necessary for becoming a bookkeeper. Accountants also usually have a more advanced skill set.  For this reason, you may pay more to hire an accountant than a bookkeeper. 

Read more: A Guide to Bookkeeping: Skills, Salaries, and Careers

Who needs a bookkeeper vs. an accountant?

In many cases, the size of your company will help dictate your decision. A bookkeeper might be the right fit for you if you are looking for a professional to keep a record of your business’s daily financial transactions and if you have a simple business structure. Additionally, hiring a bookkeeper may be right for you if you want to spend less on payroll, as bookkeepers typically earn less than accountants. 

If you have the salary budget, you may want to hire an accountant to handle more complex financial transactions that need additional monitoring or recording or if you have a large inventory. Accountants generally deal with less clerical work compared to bookkeepers. Instead, they must use skills such as logic and problem-solving. 

Financial implications of hiring a certified bookkeeper

According to Payscale, wages for a certified bookkeeper will cost an average of $58,000 per year [1]. Additional training and education may increase this number.  If you own a smaller company, you may prefer to hire a candidate with just a high-school education and provide them with training, but those with larger businesses may require a candidate with more experience or a college degree. 

While bookkeeping is not a licensed profession, an employee with a certification proves their level of competency in the industry. Certification also shows that potential employees are up-to-date on accounting practices. 

Hiring a certified bookkeeper could potentially save your company money, offsetting the costs of wages and benefits. With their expertise, bookkeepers can often identify ways your company can cut costs, streamline financial practices, and avoid unnecessary fees and penalties.

Getting started with Coursera

Hiring a certified bookkeeper can help you keep your company's finances in order, no matter the size of your business or the industry. If you're interested in becoming a certified bookkeeper or have an employee who handles bookkeeping duties and would like to become certified, consider earning the Intuit Academy Bookkeeping Professional Certificate on Coursera. You'll have the opportunity to learn basic bookkeeping concepts, interpret and analyze financial statements, and become well-versed in accounting fundamentals to give you a solid foundation in the industry.