Is it hard to become a bookkeeper?
Are you a wizard at using spreadsheets, and do you enjoy spending the whole day marking cells with the most eye-catching colours?
Is it your goal to turn everything you do into a series of numbers and equations?
Imagine having a job that allows you to work from the convenience of your own home and allows you to spend all day engaged in activities related to numbers. A job that allows you to work whenever you want, for whatever long you want, and in whatever capacity you choose to do so. Even if you don’t have any relevant experience or qualifications, you may still apply.
You only need to have solid computer skills, an interest in mathematics, and the willingness to assist company owners in tackling one of their most hated responsibilities: a box full of receipts.
Did you know that an article in Entrepreneur magazine ranked accounting as one of the most lucrative opportunities for small companies to pursue online?
Its high hourly wage of over $80 and its cheap overhead and almost nonexistent starting costs helped it earn this highly sought-after distinction.
As a result of this, if you are searching for a new online employment opportunity, I strongly encourage you to consider launching a virtual accounting firm.
You may get started in this in-demand, high-paying, flexible job path even if you have no professional expertise in bookkeeping. Working from home is a perk of this field. Here are the steps:
You have a high chance of succeeding as a bookkeeper if you enjoy working with statistics and technology, pay close attention to detail, engage in in-depth analysis, and are an effective planner. To our good fortune, there is a lot more to becoming a bookkeeper than simply having the right disposition for the job.
Bookkeeping is a sector that has excellent development, decent income, and flexible entrance criteria, all of which make it an attractive career option.
This is a broad subject with lots of potential for people who are more introverted or more extroverted and those who fall somewhere in between.
You only need solid computer skills and an interest in mathematics to become a bookkeeper. Entrepreneur magazine ranked accounting as one of the most lucrative opportunities for small companies to pursue online.
Even if you don’t have any relevant experience or qualifications, you may still apply.
Bookkeeping is concerned with recording transactions, whereas accounting requires the interpretation and analysis of data. If you do not have the time or motivation to maintain your books, bookkeeping is 10 times the effort that it should be.
Struggling to keep up with your bookkeeping? We’re here to help.
Bookkept are qualified accountants and business advisors who can take care of all your accounting and business advisory needs, so you can focus on what you’re good at – running your business.
What does a bookkeeper do every day?
For large and small organizations, bookkeepers oversee and track revenue and spending. You will be responsible for recording any financial transaction and assisting businesses in keeping track of how much money comes in and goes out each month as a bookkeeper.
Among your everyday responsibilities might be:
- sales of recordings
- receipts filing
- expense reconciliation
- Payroll and bill management payments
- preparing financial statements for record-keeping
After the transactions have been recorded, an accountant will check the bookkeeper’s work, analyze the data, and make any necessary revisions before submitting the accounts.
So, what is the difference between a bookkeeper and an accountant?
The major difference between accounting and bookkeeping is that accounting requires the interpretation and analysis of data, whereas bookkeeping is just concerned with recording transactions. This is the most important contrast between the two fields.
So…is bookkeeping hard to learn?
The answer to your question is both yes and no, which will probably not sit well with you.
However, even though all of this sounds incomprehensible to you right now, we assure you that it will become clear after you better understand what is involved in bookkeeping. Now that we get it out of the way…
A career in accounting is not one of those vocations that are in danger of becoming obsolete as a result of developments in technology.
On the contrary, bookkeepers are in higher demand than ever before in the business world because companies require someone to maintain their financial records and ensure that they are correct.
Technology’s only function is to streamline and simplify many aspects of human labour.
Bookkeepers, for example, have to deal with fewer paper checks as a direct result of the rise of electronic banking and the prevalence of accounting software.
This is because electronic banking and accounting software make it easier to track financial transactions.
The level of knowledge and attention to detail necessary to keep your records in order will vary widely according to your line of work.
One of the reasons why the answer to the question “Is accounting hard?” is not as straightforward as it would first appear is because of this.
Many business owners (though not all) are more than capable of performing their own bookkeeping if they are given a significant amount of spare time.
However, company leaders frequently have to wear a variety of hats and must complete a laundry list of high-level activities to ensure the smooth operation of their companies.
It can be a difficult scenario if you divide your time between lower-level duties and higher-level jobs like bookkeeping. Unfortunately, the maintaining of the books is frequently the aspect that receives the least amount of attention, which takes us to our next topic…
Maintaining consistency in one’s bookkeeping practices is essential to ensuring a positive experience.
However, if you do not have the time, the motivation, the mentality, or the know-how to remain on top of your accounts, you will discover that bookkeeping is 10 times the effort that it should be.
For example, if you want to become an archaeologist quickly, all you have to do is try to dig through old records and transactions from the months that have passed.
However, instead of finding thrilling temples full of riches or new dinosaurs to name, all you will find are old transactions.
Bookkeeping is not for everyone.
A survey that interviewed over 500 Australian small company owners found that accounting is the work that they despise the most, with the second most detested activity dropping a whopping 24 percent behind bookkeeping in the rankings.
You are not alone if you don’t love classifying transactions. And if you don’t enjoy doing something, it doesn’t matter how straightforward the activity is; you can’t call it “easy.”
The process of maintaining books requires a lot of repetition and can be mind-numbing at times (well, a lot of times). If you are someone who does not have the patience or an attitude of a marathoner, you will rapidly realize that the work is too much for you to handle and you will become exhausted.
“Durham Technical Community College reported that the most difficult part of their job was not maintaining financial records, which accounted for 50 per cent of their time.
Instead, it was communicating with colleagues. Bookkeepers must maintain and balance financial records daily, including transactions from coworkers.”
Whether you are looking to become a bookkeeper for employment or a business owner looking to manage your finances, proper bookkeeping will require you to engage with your employees to understand your company’s transaction history better.
But, again, this is true whether you are looking to become a bookkeeper for employment or you are a business owner looking to manage your finances.
This is because we haven’t yet gotten to the meat of the problem in this discussion. Theory and practice are two quite distinct ways of thinking about anything, as any respectable scientist would attest to for you. And while though we’d venture to say that, in principle, many business owners are more than capable of doing their bookkeeping on their own, in practice, many of them fall short of their potential.
How much does a bookkeeper make?
Did you know that managing your own books is ranked as the number one most profitable business that can be started from your own home by Entrepreneur Magazine?
You may anticipate earning anywhere from $18 to $23 per hour after you begin working as a bookkeeper at the beginning level. This indicates that your annual salary as a novice might be close to $40,000 per year.
But keep in mind that this is the average amount of money you may make from working for a corporation. According to QuickBooks, if you have gained expertise in your field, you may make anywhere from $69 to $82 per hour working as a freelancer from the comfort of your own home.
If you wish to work from home, either part-time or full-time, accounting is an excellent choice to explore because of the amazing income possibilities associated with the position. On the other hand, if you are looking for a way to generate some additional money or if you want to establish a virtual bookkeeping firm without putting in too many hours of labour, bookkeeping could be the ideal career path for you.
What qualifications do you need to become a bookkeeper?
You won’t believe it, but starting a bookkeeping firm doesn’t require any special credentials on your part. You also do not need to be a Certified Public Accountant (CPA) or have a degree in accounting to launch a successful online bookkeeping service.
But if you want to have a successful career as a bookkeeper, you will need to possess a number of highly certain abilities and attributes that will help you succeed in the field.
Take a look at the characteristics listed below, and if you recognize any of them in yourself, you are destined to be a successful accountant.
Bookkeeping skills you need:
- Computer fundamentals checked; nothing out of the ordinary here. These days, having this ability is very necessary for whatever career you choose to pursue.
- If you are the type of person who likes to colour-code cells and, like me, you need everything to be in its box, then bookkeeping may be the right profession for you. Every day, you’ll have to deal with a large amount of papers and numbers. Additionally, it is necessary to remain on top of everything.
- You will need to keep a keen eye out for the key details since you will be responsible for documenting crucial financial information. The very worst thing that might happen is if you entered the incorrect number into the wrong cell. Customers want to know that they can put their money and confidence in you to handle their finances without any errors occurring. Therefore, you need to be able to quickly recognize when the sum of two numbers does not make sense.
- Multitasker: if you are working as a virtual bookkeeper, you will most likely be dealing with many clients at the same time. Because of this, you will need the ability to transition from one set of accounts to another in a matter of hours or less. You will also need to prioritize the important duties for each of the companies you are in charge of managing.
- You don’t have to be the center of attention to be charming; that’s OK. Because you will be working from home, attendance at the celebration is not required of you in any way. And most bookkeepers are real introverts. Even if you just communicate with your customers through email, you still need to be pleasant in some way in order to be successful at developing positive working connections with them.
- The launch of a bookkeeping firm won’t take place overnight, so bear that in mind when you’re determined. First, you must ensure that you are ready to put in a lot of effort in order to achieve your goal. Bookkeeping requires time and work. If you want to be successful at it, you can’t be a slacker and put off the work that needs to be done. Any kind of business may be highly gratifying, but you can’t expect to be successful if you do. If you give up at the first indication of difficulty, there is no chance that you will ever succeed.
One thing that could help you get started the right way is getting some bookkeeping training under your belt.
Here are solid reasons you should consider to become a bookkeeper.
Plenty of jobs are available in bookkeeping.
The typical yearly pay for a bookkeeper with more bookkeeping positions available as the economy expands.
According to the Australian Bureau of Statistics projections, the economy is expected to expand by 11% between 2012 and 2022. This equates to 37,000 employment opportunities on a yearly basis.
Your job chances will be favourable no matter where you go because there is a consistent need for bookkeepers.
You also have a wide variety of work options available to you based on industry. In the field of professional, scientific, and technical services, bookkeepers make up around 12 percent of the workforce.
Others find employment in wholesale and retail commerce, health care and social assistance, financial services and insurance, and other related fields.
You may have the possibility to find a job in a firm that provides you with an excellent balance between your work and personal life and professional advancement opportunities.
Technology and bookkeeping go hand in hand.
Bookkeeping is not one of those professions that will be rendered obsolete as a result of technological advancements.
On the contrary, businesses require bookkeepers now more than ever to maintain their financial records in order and ensure that they are correct.
Technology has only one purpose: to make labour more convenient. Because to the development of internet banking and the prevalence of accounting software, bookkeepers, for example, have to deal with fewer paper checks.
You control your career
You may be able to get control of your job by learning bookkeeping. Start working as soon as possible, and work as much as you need to.
Many people start the sector with a high school diploma or some college education, however, many prefer to earn a college degree to improve their job prospects.
Many bookkeepers go on to become auditors or accountants, so there are plenty of opportunities for promotion.
Working part-time or full-time is possible, while longer workdays are frequent during tax season, when audits are due, and at the conclusion of fiscal years. In addition, you can work as a freelancer or for a well-established corporation.
The pay is solid
Bookkeepers are well compensated, and as the preceding section mentions, you have control over your career and earnings.
According to the Australian Bureau of Labor, the median annual compensation for bookkeepers in Australia is $36,430, with the top 10% earning more than $54,470.
The poorest ten percent of the population earns $22,480 or less. Earn a bachelor’s degree and certifications for better compensation, and focus on high-paying areas like the postal service.
Your passions fit
Bookkeeping may be a pleasant job to pursue if you have a passion for numbers and details and the ability to focus.
Prioritizing some activities over others and avoiding multitasking are both part of your work. There will be no multitasking. You must be able to concentrate on a single financial scenario without being sidetracked.
You combine your passion of technology with traditional methods.
For accounting, auditing, and document management, you could utilize ledger sheets and receipt books in addition to calculators, computers, and software packages. You’ll need to stay up with technical advancements in bookkeeping, so a drive to learn more is essential.
If you love interacting with people, you could appreciate working in an accounting position.
If you’re shy, though, there are lots of occupations where you won’t have to interact with others as much.
Work in a position that requires you to go to multiple clients’ offices if you enjoy getting out of the office.
If you like the convenience of working in an office, many career options are available. You may truly adapt the job to meet your personality as long as you have the fundamentals down right, such as an aptitude for numbers and attention to detail.
What does it take to become a bookkeeper?
The fact that accounting is a job that can be done from home is one of the primary reasons why so many individuals are interested in entering the field right now. Working for yourself as a bookkeeper and running your own bookkeeping firm would probably allow you to bring in a significantly higher income than working for someone else.
However, even if you have decided that you want to be a bookkeeper, you won’t be able to immediately begin working in the field without first gaining some experience.
You require bookkeeping training. In order to provide an adequate level of service to a customer, it is necessary for you to have a solid foundational understanding of bookkeeping, accounting, and maybe even taxes.
You also need to have an understanding that bookkeeping is not a simple task that you can perform even if you have no prior training or expertise in the field. Keeping accurate books may be challenging.
We work with customers whose books are typically not particularly clean, which makes bookkeeping a challenge for us, but not always for the reason that bookkeeping itself is tough.
To become a good bookkeeper, you not only need to understand bookkeeping and know how to conduct bookkeeping, but you also need to learn pretty fast how to clean up customers’ books after you’ve mastered bookkeeping on your own.
In some respects, this is analogous to doing surgical procedures.
Imagine that you have just started your career as a doctor and that you are called upon to perform an emergency operation. It’s possible that you don’t have all that much experience in that particular field.
Therefore, you’re going to need some instruction in the real world initially.
The same is true for bookkeeping; you should seriously consider making an investment in bookkeeping training.
You may acquire this training, for example, from the community college in your area, through an online accounting training school, or from any other institution.
You could also look into alternative ways to get bookkeeping training.
Training is required, but it won’t get you all the way there on its own because you’ll also need some experience working in the real world.
For example, suppose you have never done any bookkeeping before.
In that case, I want to encourage you to first actually get a job in bookkeeping by working for an accountant, a bookkeeper, or working at a company doing some accounting and bookkeeping tasks.
If you have never done any bookkeeping before, I want to encourage you to get a job in bookkeeping.
You need to gain some experience, see some transactions in the real world and become familiar with a firm’s operation.
Another thing that you need to consider is that understanding how to keep books is insufficient.
It is imperative that you have a solid understanding of the accounting and bookkeeping software that you will be using. In the event that it is QuickBooks, for instance, you will need to determine whether you will use QuickBooks Online (which is hosted in the cloud) or QuickBooks Desktop (the desktop version of QuickBooks).
Because there are several variants of each, you will first need to choose the one that best suits your skill level and interests. Because QuickBooks Online is a cloud-based program, using it to launch a virtual bookkeeping firm is unquestionably a lot simpler than it would be with other options.
On the other hand, this is not something that can be started immediately. Even if you are familiar with driving a standard automobile, it does not follow that you can also operate a racing vehicle. A good analogy for QuickBooks Online would be a race vehicle: Before you can jump right in and start using it, you need to first learn how to operate a race car.
Another important aspect to bear in mind is the fact that when you launch a bookkeeping firm, you are actually launching a full-fledged company.
This indicates that if you don’t have any prior experience managing a company, you will need to educate yourself and gain practical experience by managing your own company.
This begins with deciding what sort of entity you want your company to be (both legally and fiscally), which is the first step in setting up your company. Having a strategy for what your company will be in the future or how it will look like is another need.
This is referred to as having a business plan.
Think about whether you will continue to be a single bookkeeper or whether you will expand your business to include staff or contractors in the future.
When you are planning the launch of your accounting firm, you need to give careful consideration to all of the aforementioned factors. Bear in mind, once more, that this might be a challenging task. In addition to learning how to maintain the books, you will need to educate yourself on the relevant technologies.
You need to gain some experience and see some real-world transactions. It is imperative that you have a solid understanding of the accounting and bookkeeping software that you will be using. When you launch a bookkeeping firm, you are launching a full-fledged company.
This indicates that if you don’t have prior experience managing a company, you will need to educate yourself. Bear in mind, once more, that this might be a challenging task.