How to Become a Bookkeeper

Bookkeepers manage an organization's financial records by tracking transactions and producing reports for accountants and managers. These professionals use problem-solving, analytical, and detail-oriented skills while working closely with numbers and bookkeeping software.

While a bookkeeper's duties may overlap with that of an accountant, bookkeepers do not need a college degree. However employers may prefer some college courses in accounting and finance or a bookkeeping certificate.

Learn how to become a bookkeeper in this guide.

Steps to a Bookkeeper Career

Since bookkeepers have no mandatory education or experience requirements, you can take several pathways into the profession. However, you may have access to more and better opportunities with stronger qualifications and credentials.

Below, we highlight the two most common pathways to becoming a bookkeeper.

Required Education for a Bookkeeper

Most bookkeepers require a high school diploma and some postsecondary education, such as a certificate, but you can improve your employment opportunities with an accounting degree. An associate or a bachelor's degree demonstrates your expertise in the field, which can help you land more competitive jobs and position you for future advancement.

There's also a salary boost that comes with higher degree levels. According to Payscale, accounting bachelor's degree graduates earn an average annual salary of $82,000, while associate degree graduates earn an average annual salary of $57,000.

Required Credentials for Bookkeepers

While bookkeepers may not need any professional certifications or credentials, many employers prefer them and some even require them. The most relevant bookkeeper certifications are the certified public bookkeeper (CPB) credential from the National Association of Certified Public Bookkeepers and the certified bookkeeper (CB) credential from the American Institute of Professional Bookkeepers.

Both credentials require you to complete a four-part exam, but the scope varies. For example, the CPB exam tests you on bookkeeping, payroll, QuickBooks, and accounting. The CB exam tests you on adjustments and error correction, payroll and depreciation, inventory, and internal controls and fraud prevention.

The CPB credential also requires a minimum of one year of bookkeeping experience, whereas the CB credential requires at least two years. You also need to sign a code of ethics for both credentials.

Optional Certifications and Degrees

In addition to the degrees and certifications above, bookkeepers can pursue advanced credentials to improve their standing in the field, their opportunities, and their earning potential.

A master's degree in accounting, for example, may help you pursue leadership positions in your field or organization. A graduate degree can also help prepare you for the certified public accountant (CPA) credential from the American Institute of Certified Public Accountants (AICPA). According to AICPA, CPAs earn 10%-15% more than the average starting salary for accountants.

To earn the CPA credential, you need to complete a minimum of 150 hours of higher education and pass a four-part exam.

Required Experience for a Bookkeeper

Bookkeepers typically don't need experience, as they often learn the required skills as they go. As a result, many accounting professionals start their careers in a bookkeeping role to build the experience they need for more senior positions.

Every job and person is different, but it usually takes about six months of on-the-job training to really get a grasp on the bookkeeping role. If you have a degree in accounting or a related discipline, you will probably pick it up quicker than if you don't. Many accounting programs feature internships and practicums that help you build experience as you learn.

Should I Become a Bookkeeper?

Bookkeeping offers a good starting place in the accounting field, with minimal education and experience requirements. You can develop valuable skills such as tracking transactions in bookkeeping software and creating reports, such as balance sheets and income statements.

There are some professional drawbacks due to software advancements that perform similar roles to bookkeepers and accounting clerks. The Bureau of Labor Statistics (BLS) projects a 5% decline in bookkeeping occupations from 2023 and 2033. The BLS also reports a median annual wage of $47,400 for bookkeepers, which is less than the average for all occupations.

Still, there's opportunity in the field, with nearly 175,000 annual openings projected over the decade. You can strengthen your employability and opportunity for advancement with a college degree.

The Job Hunt

Looking for a job can be intimidating, but there are numerous resources at your fingertips. If you have a degree or a certification, check with your school or professional organization for tips and resources. They may have a job board or professional network that could lead to opportunities.

You can also look through the following resources for bookkeeping-related job postings.

• Accounting Jobs Today: Accounting Jobs Today offers career coaching and resources, along with a job board that you can filter by industry, state, and job function.
• AIPB Job Board: The AIPB job board hosts bookkeeping job openings and client opportunities. You can also take courses and upload your resume for clients and employers to find you.
• American Accounting Association: The American Accounting Association hosts a job board and career center with accounting-related job postings across the country.
• iHireAccounting: iHireAccounting is home to more than 80,000 accounting jobs, including many bookkeeping opportunities. You can also find helpful employment resources and tips.

Upward Mobility

Bookkeepers can advance their careers with experience and education, pursuing roles with more responsibility and stronger professional outlooks. For example, if you have an accounting degree, you can pursue payroll accountant or staff accountant positions.

Payroll and staff accountants take on more analytical and managerial support roles, as opposed to the record-keeping responsibilities of bookkeepers. These positions also tend to pay better and offer more long-term growth.

The BLS projects 6% occupational growth for accountants between 2023 and 2033, with 130,800 openings yearly. The median annual salary for accountants was $79,880 in May 2023, over $30,000 higher than that for bookkeepers.

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