How to Become a Bookkeeper

Bookkeepers manage an organization's day-to-day finances. Tasks range from invoicing customers to paying bills. Depending on the company's size and the financial department's structure, bookkeepers may help file taxes and manage payroll. 

Technological changes aimed at improving efficiency in financial management will likely affect this industry, leading some bookkeepers to take on more of an analytical role. If you'd like to become a bookkeeper, you can seek training opportunities to adjust to these changes, such as becoming certified bookkeepers or enrolling in training on emerging technology.  

In some cases, you won’t need a formal degree to work in this field, but you can build your bookkeeping skills through work experience, training, and certifications. Learn more about what a bookkeeper does and how to become a bookkeeper, including the training and skills you need for a career in bookkeeping.

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

What does a bookkeeper do?

Bookkeepers manage the financial records of organizations. In this role, the entire scope of your tasks will vary widely by employer and business size. They might include creating and managing invoices, maintaining general ledgers, running payroll, and preparing financial statements. Bookkeepers do not make formal financial projections as accountants would. Bookkeepers can, however, analyze and create financial reports. As a bookkeeper, you'll need to adhere to local, federal, and company policies, regulations, and financials. 

Most bookkeeping professionals work traditional full-time schedules in an office setting. However, you might work remotely as a part-time or full-time employee or as a freelancer. You may even own your own bookkeeping business. It’s not uncommon for a bookkeeper to work for multiple companies and therefore travel to each business on varying schedules. 

Read more: What Is Bookkeeping? Duties, Pay, and How to Become a Bookkeeper

Common bookkeeper responsibilities include: 

• Maintaining the general ledger: Using written or computerized bookkeeping methodology, you'll enter transactions in and out and tallies the sum to ensure accuracy. You can also catch errors and fraudulent transactions using the data recorded on their ledger.  

• Designing spreadsheets: Spreadsheets are the core framework bookkeepers use to input and calculate data and analyze transactions. You should know how to design, manipulate, and use spreadsheets and rely on tools to enhance accuracy and efficiency. Spreadsheet software proficiency can also be beneficial.

• Completing financial reporting: You'll likely prepare financial statements and create financial reports to assist a business in daily operations and financial performance, which can help with important decision-making. The balance sheet, income statement, and statement of cash flow are three of the most common financial reports a bookkeeper maintains. 

• Handling accounts receivable, accounts payable, and payroll:  Most bookkeepers handle these three main aspects of a small business's finances. While performing these duties, you might find yourself paying bills, creating invoices, managing past-due accounts, and withholding taxes.  

Salary and job outlook

According to Glassdoor, the estimated total pay for bookkeepers in the US is $64,096 per year [1]. This figure includes an average base salary of $54,420 and $9,676 in additional pay. Additional pay may represent profit-sharing, commissions, or bonuses. Those who work in professional, scientific, and technical services typically earn the most, followed by those who work in the finance and insurance industries, according to the US Bureau of Labor Statistics (BLS) [2]. 

Despite a slight downturn in projected demand for bookkeepers, the need for bookkeeping services remains, as the BLS predicts 183,900 openings for bookkeeping, accounting, and auditing clerks between 2022 and 2032 [3]. Technological advances may impact the number of workers needed in this field, but these advances provide ample opportunity for bookkeepers to expand their skill sets as financial professionals. Many people who work in this field will go on to work in advisory and analytical roles rather than clerical ones.

How to become a bookkeeper

To become a bookkeeper, focus on building key bookkeeping skills and gaining the necessary qualifications. Though bookkeeping requirements vary, most employers don’t require college degrees. Some ways to gain skills include on-the-job training, certifications, and taking courses. 

1. Earn your high school diploma or GED. 

Bookkeepers must usually have at least a high school diploma or General Development Test (GED). Earning your diploma or GED is also a requirement if you want to pursue an undergraduate degree. 

Read more: Can You Go to College with a Ged?

2. Acquire an undergraduate degree. 

Although a formal college degree isn't usually required for becoming a bookkeeper, acquiring one strengthens your resume and boosts your hiring potential. It can also help you strengthen your skills. 

Many bookkeepers hold an associate degree in accounting. In some cases, companies may require a bachelor’s degree in business, finance, accounting, or a related field. 

Read more: Accounting Degrees: Courses, Careers, Salaries

3. Gain on-the-job training through employment or internships. 

Real-world experiences can help you acquire important skills necessary to succeed in bookkeeping. Gaining professional experience builds a great resume and helps you prepare for a career in bookkeeping. Look for an entry-level position or consider an internship. Not only will you learn new skills, but you may find that you can go on to work for that organization once your internship is over.

Freelance positions may be another way to enter the field and gain experience early in your career. Some companies may hire part-time remote bookkeepers who act as contractors rather than employees.  

Some employers offer on-the-job training for employees with little to no bookkeeping experience. 

4. Consider certification. 

Certifications demonstrate your proficiency in the bookkeeping field. They may also increase your annual salary, access to better-paying positions with more responsibility, and a greater chance of getting hired. 

Popular certifications for bookkeepers include: 

Certified Bookkeeping (CB) Designation

• Offered by the American Institute of Professional Bookkeepers 

• Requires at least one year of college accounting or professional experience

• Self-paced program that culminates with a certified bookkeeping exam

Certified Public Bookkeeper (CPB) Certification 

• Offered by The National Association of Certified Public Bookkeepers 

• Other than passing the pre-assessment exam, no educational or experiential requirements 

• Self-paced accounting fundamentals course and exam required to earn certification

Accounting software certifications

• Intuit QuickBooks Certified ProAdvisor Certifications 

  • Choose from Online, Advanced Online, Payroll, or Desktop 

• Microsoft Office Specialist Excel Associate certification

Required skills for a bookkeeper

As a bookkeeper, you'll need to hone certain technical and workplace skills. Technical skills are the more formal skills that you can learn through your education. Human skills are those you learn throughout your life through experience. 

Technical bookkeeping skills 

Proficiency in bookkeeping software and general computer literacy, as well as strong mathematical computing skills, are key for any bookkeeping professional. 

The software systems you use as a bookkeeper and the methodology you use to keep the books may depend on your employer. The landscape is changing for this profession by way of AI, machine learning, and automation so it's beneficial if you gain knowledge of multiple software systems to adapt to these changes. Some employers prefer double-entry bookkeeping, while others prefer single-entry. It’s also wise to have knowledge of multiple bookkeeping methods. 

Consider building these additional technical bookkeeping skills: 

• Invoicing

• Basic math skills

• Data entry

• Budget preparation

• Financial reporting 

• Knowledge of accounting software and basic computer literacy

• Knowledge of spreadsheet programs, like Excel 

• General business knowledge 

Workplace skills 

Bookkeepers work with critical financial data. For this reason, attention to detail is an important skill for you to have to ensure accuracy. You must also have integrity. Organizations trust you with confidential data and expect you to maintain privacy and be honest with them when handling this sensitive information. 

Consider building these additional workplace skills: 

• Clear communication 

• Organization 

• Problem-solving skills 

• Time management 

• Collaboration and teamwork

• Good memory 

• Adaptability 

Read more: What Are Job Skills and Why Do They Matter?

Bookkeeper career path

To get your start as a bookkeeper, consider applying for internships or entry-level positions, such as an associate bookkeeper. Take advantage of these positions as a way to build your skills and move into positions with more responsibility. Many employers will train entry-level bookkeepers on the job. 

Once you’ve been in the profession for a while, you might pursue a more advanced position in bookkeeping. Some bookkeepers become certified public accountants (CPAs). Accountants have more expansive roles than bookkeepers and typically earn more, making it a popular career pathway for bookkeepers. 

Working from home as a bookkeeper

Working from home as a bookkeeper—also referred to as virtual bookkeeping—means you complete all bookkeeping tasks remotely. Virtual bookkeeping jobs may be part-time, full-time, or freelance positions. To work as a virtual bookkeeper, you’ll need the same skills and training required to complete the tasks required for this position. 

Qualifications may vary by employer, as do your potential earnings. Some factors impacting a virtual bookkeeper's salary include your location and that of your clients, your experience in bookkeeping, and the scope of responsibility and tasks. Virtual bookkeepers can expect to earn an average base pay of between $48,000 and $68,000 per year, according to Glassdoor  [4]. You can find virtual bookkeeper job opportunities on online job boards, with staffing agencies, and on freelance online marketplaces.

Consider the benefits of virtual bookkeeping: 

• Flexible work hours 

• Improved work-life balance 

• Work from anywhere 

• Opportunity to have your own business 

• Greater autonomy 

Get started with Coursera

Organizations and individuals entrust critical financial data to bookkeepers. Bookkeeping is a career that requires integrity and professionalism, as well as mathematical and analytical acumen. Few formal qualifications are required, making this job fairly accessible for most detail-oriented individuals who enjoy working with numbers. 

Certification and training opportunities are ample in the field of bookkeeping. Enhance your skills as a bookkeeper with the Intuit Academy Bookkeeping Professional Certificate on Coursera. Get started today and break into the field of bookkeeping as a credentialed professional.