How to Become a Bookkeeper in 5 Easy Steps
How to Become a Bookkeeper in 5 Easy Steps
How to become a bookkeeper
A bookkeeper maintains a business's financial records, tracking the day-to-day transactions like expenses, revenue, invoices, and payments. If this type of work interests you, you've come to the right place. In the following sections, you'll discover the essential steps to launch your career as a skilled and successful bookkeeper.
Step 1: Education
While not always mandatory, a degree in accounting, finance, or a related field can significantly enhance your prospects. Many entry-level bookkeepers hold an associate or bachelor's degree. If a full degree isn't feasible, consider a certificate program as a quick way to learn the basics.
Online platforms like Coursera offer bookkeeping and accounting courses, providing flexible learning options.
Step 2: Skills
To thrive as a bookkeeper, you'll need a combination of technical expertise and interpersonal abilities. Start by honing your math proficiency, data entry accuracy, and general computer literacy—these form the foundation of day-to-day tasks.
Next, prioritize mastering industry-standard software like QuickBooks, Xero, and Sage, which are essential tools for modern bookkeeping.
Equally important are soft skills: cultivate strong organizational habits, refine your time-management strategies, and practice clear communication to handle client interactions and financial reporting effectively.
Step 3: Experience
Getting hands-on experience is essential to becoming a confident bookkeeper. Look for entry-level bookkeeping or accounting clerk positions or internships where you can put your skills to work and make valuable connections. You can also volunteer at local non-profits or small businesses to build your resume and gain real-world experience.
Step 4: Certification
While not always required, earning a professional bookkeeping certification can give your career a valuable boost. Certifications show employers that you're committed and knowledgeable, opening doors to better job opportunities and higher pay. Keep this option in mind as you gain experience and build your skills.
Step 5: Career
To advance your bookkeeping career:
Craft a strong resume: Highlight your technical skills, software proficiency (mention specific programs you've used), and quantifiable achievements from any previous bookkeeping or accounting-related roles. Tailor your resume to match the specific requirements of the jobs you're applying for.
Network: Join professional organizations like the AIPB or local bookkeeping groups to connect with other professionals in the field. Attend industry events and workshops. Create a professional profile on LinkedIn and actively engage with relevant content and groups to expand your network.
Search for jobs: Utilize online job boards like Indeed, LinkedIn, and Accounting.com to find bookkeeping positions that match your skills and experience. Also, consider reaching out to local accounting firms or businesses directly to inquire about potential job openings.
Specialize: Focusing on a specific industry (like healthcare, real estate, or e-commerce) or a particular area of bookkeeping (like payroll, accounts payable, or tax preparation) can make you a more attractive candidate and potentially lead to higher-paying positions.
Stay updated: Accounting regulations and software are constantly evolving, so commit to continuous learning. Take continuing education courses, attend webinars, and stay informed about the latest industry trends and best practices to remain competitive and advance in your career.
Certifications can really help set you apart. We'll go over the details of how to become certified in the next section.
How to become a certified bookkeeper
The two main certifications, Certified Bookkeeper (CB) and Certified Public Bookkeeper (CPB), offer distinct paths to advance your bookkeeping career. Both certifications demonstrate your expertise and commitment, but the CB emphasizes practical experience while the CPB focuses on formal education and training. Choose the path that best fits your background and career goals.
Certified Bookkeeper (CB)
Earning the Certified Bookkeeper (CB) credential can significantly enhance your bookkeeping career. This nationally recognized designation demonstrates your expertise and commitment to the profession, setting you apart from other bookkeepers.
To become a CB, follow these steps:
Apply: Submit your application for the Certified Bookkeeper designation through the American Institute of Professional Bookkeepers (AIPB).
Pass the exam: Demonstrate your knowledge by passing the four-part national certification exam covering adjusting entries, payroll, depreciation, and more.
Agree to ethics: Sign the AIPB Code of Ethics to show your dedication to professional standards.
Provide experience: Validate your practical experience by providing evidence of at least 2 years of full-time bookkeeping work, or the equivalent of 3,000 hours in part-time or freelance roles. You can fulfill this experience requirement before or within 3 years after passing the exam.
Maintain certification: Complete 60 or more continuing education hours every 3 years to keep your credential active.
Many colleges and universities recognize the value of the CB designation and offer preparatory courses to help aspiring bookkeepers succeed on the national exam.
Certified Public Bookkeeper (CPB)
Becoming a Certified Public Bookkeeper (CPB) elevates your expertise and demonstrates a high level of competence in bookkeeping practices. This certification validates your expertise in areas like accounting, payroll, and tax, making you a more valuable asset to businesses and clients.
To earn the CPB certification:
Meet eligibility: Confirm you meet prerequisites such as a high school diploma and a specific amount of bookkeeping experience.
Complete coursework: Complete the required coursework through the National Association of Certified Public Bookkeepers (NACPB) or an equivalent program.
Pass the exam: Pass the Uniform CPB Examination, which consists of four modules: Accounting, Payroll, Tax, and Ethics.
Agree to ethics: Adhere to a professional code of ethics demonstrating your commitment to professionalism.
Maintain certification: Fulfill 24 continuing professional education (CPE) hours annually and renew your license each year.
By obtaining the CPB certification, you gain recognition for your skills and increase your opportunities for advancement in the bookkeeping field.
How to become a bookkeeper with no experience
Starting without experience? Focus first on building your skills through online courses or certificate programs that cover bookkeeping basics and software like QuickBooks. Practicing with free software trials can also help you gain confidence.
Next, gain practical experience by volunteering for local non-profits or small businesses, or by applying for internships and entry-level roles that involve basic bookkeeping tasks. Even small freelance projects can boost your resume.
Networking is key—join bookkeeping groups on LinkedIn or local professional organizations to connect with mentors and discover job opportunities. When applying, tailor your resume to highlight relevant skills like accuracy and software proficiency and target entry-level positions such as accounting assistant or payroll clerk.
Volunteering with non-profits can provide valuable experience that future employers appreciate.
How to become a virtual bookkeeper
Becoming a virtual bookkeeper requires the same foundational skills and knowledge as traditional bookkeeping but with a greater emphasis on technology and client communication.
Instead of working in an office, you'll be managing finances remotely, so you'll need to be proficient in cloud-based accounting software, secure file-sharing practices, and virtual communication tools. You’ll also need to focus on clear, responsive communication and maintaining a professional online presence.
Many bookkeepers eventually start their own businesses. If you're interested in taking that leap, be sure to check out our guide on starting a successful bookkeeping business for more information.
FAQs about becoming a bookkeeper
What is a bookkeeper?
A bookkeeper is responsible for the day-to-day recording of a business's financial transactions. This involves entering data, updating records, and ensuring that all transactions are accurately documented. Bookkeepers maintain financial records, which they use to create financial statements and reports. Accurate bookkeeping provides a clear picture of a company's financial health.
Responsibilities of a bookkeeper may include:
Recording financial transactions
Maintaining and balancing ledgers
Preparing financial reports
Reconciling bank statements
Managing accounts payable and receivable
Ensuring compliance with accounting regulations
How long does it take to become a bookkeeper?
The path to becoming a bookkeeper isn't set in stone, taking anywhere from a few months to several years to gain the necessary skills and knowledge. This depends on whether you have any prior education or experience in accounting and how quickly you progress through your chosen learning methods.
Earning certifications can add to the timeline but can also boost your career prospects.
How much does it cost to become a bookkeeper?
The cost of becoming a bookkeeper is also variable. If you're resourceful, you can leverage free online resources to learn the basics. However, for more structured learning, you might invest in online courses, training programs, or certifications.
These can range from a few hundred dollars for a basic course to a few thousand for a comprehensive certification program.
Why become a bookkeeper
Ultimately, a career in bookkeeping offers stability, flexibility, and the chance to be a financial hero for businesses. Bookkeepers are in demand across industries, and the earning potential is impressive, with bookkeeping costs averaging $40 to $100 per hour, depending on the professional's location and expertise.
If a salary in that range sparks your interest, and you have a knack for numbers and organization, bookkeeping could be your ideal career path!
What is the difference between a bookkeeper and an accountant?
Bookkeepers are primarily responsible for the day-to-day tasks of recording financial transactions, categorizing expenses, and maintaining accurate financial records. They ensure that all financial data is correct and up to date.
Accountants, on the other hand, take a broader view of the financial picture. They analyze and interpret the data recorded by bookkeepers, prepare financial statements, provide financial advice, and may also handle tax planning and preparation.
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.