Bookkeepers are responsible for taking care of financial records, such as payroll and accounting, at small- to medium-size businesses. Bookkeepers should have a bachelor’s degree in accounting or a related field and experience working with financial records is needed.
According to the Bureau of Labor Statistics, the annual mean wages for bookkeeping managers are $66,870. That’s $32 per hour for those keeping records and managing books in various industries. You might be surprised at how much you can earn as a bookkeeper because each position on your résumé is likely to have a different salary range.
Starting Salary For A Bookkeeper Overview
The question of how much does a bookkeeper make has been the topic of many conversations for years. Are you curious about how much you can earn as a bookkeeper? Are you wondering whether it’s possible to make a career out of bookkeeping?
The truth is that there are many factors that determine exactly how much money you will make as a bookkeeper, but there are also some general guidelines that can help guide your decision. The first thing to consider is whether or not you want to work full-time or part-time. If you’re looking for more flexibility, then part-time may be an option for you. However, if you want stability and security, then full-time employment might be preferable.
Another factor that affects your salary as a bookkeeper is your experience level. Bookkeepers who have worked at companies for many years will typically have higher salaries than those who have just graduated from college with only basic knowledge about accounting practices and procedures. It’s important to remember that if someone has been working in this field for decades, then they’ve likely developed strong relationships with clients who trust their judgment when it comes time for tax preparation services or other financial advice; therefore they’re likely charging higher fees than newer employees who may not yet be fully
working as a bookkeeper
As keeper of the books, er sorry, we mean bookkeeper, you’re in charge of all things financial records. From creating the records in the first place to checking them for accuracy, you’ve got a lot of math on your hands.
Speaking of math, you’ll probably need some postsecondary education to become a bookkeeper. Math will be a good starting point, but you’ll also want to be familiar with certain bookkeeping software and other computer skills. While it’s great to have some experience and knowledge before you secure the job, you will learn a lot through on-the-job training.
The majority of your work will be in the office. But depending on where you’re employed as a bookkeeper, you may have to travel to clients’ sites as well. The majority of your work can be completed in solitude so no group projects here. Isn’t it time they ban those types of projects anyway?
Bookkeeping vs. Accounting: An Overview
The distinctions between accounting and bookkeeping are subtle yet essential when considering a career in either field. Bookkeepers record the day-to-day financial transactions of a business. Accountants, by contrast, focus more on the big picture.
With bookkeepers, there are a lot of minutiae involved, and keen attention to detail is paramount. Meanwhile, accountants tend to use the bookkeeper’s inputs to create financial statements and periodically review and analyze the financial information recorded by bookkeepers. They conduct audits and forecast future business needs.
The two careers are similar, and accountants and bookkeepers often work side by side. These careers require many of the same skills and attributes. However, significant differences exist, like work conducted in each career and needed to be successful. The following analysis compares the education requirements, skills required, typical starting salaries, and job outlooks for accounting and books.
It is not an unusual career move for a bookkeeper to gain experience at a job and then study, get certified, and work as an accountant.
Bookkeeping
You can become a bookkeeper right out of high school if you prove you are good with numbers and have strong attention to detail. In fact, many aspiring accountants work as bookkeepers to get a foot in the door while still in school. Additionally, bookkeepers who excel at their jobs are sometimes promoted to accounting positions, even if they lack the level of education the company typically prefers.
Companies task bookkeepers with tasks such as recording journal entries and conducting bank reconciliations. A bookkeeper must be able to shift focus easily and catch tiny, hidden mistakes in a budget or invoice, and often bookkeepers work a few jobs for various clients if they work as a consultant.
Accounting
As an accountant, you may have to crunch numbers, but those are not the only skills needed. It is important to possess sharp logic skills and big-picture problem-solving abilities, as well. While bookkeepers make sure the small pieces fit properly into place, accountants use those small pieces to draw much more significant and broader conclusions.
As an accountant, you may work for a company or yourself, and there are opportunities for accountants in many industries like law, insurance and health, small business, and, of course, tax accounting firms. Accountants work with numbers and financial details all day long. Therefore, those who do not like math, get confused easily when making simple calculations, or are generally opposed to number crunching should not apply.
How Much Do bookkeepers Make?
Median Salary
According to the Bureau of Labor Statistics (BLS), the median annual bookkeeper salary is $40,240 per year, with a median hourly rate of $19.35. Bookkeeping salaries vary depending on the individual’s education, level of experience, and location.
Salary By Experience
As bookkeepers gain experience, their salaries can increase. While details may vary by the employee’s educational background and location, the table below shows average hourly pay rates for bookkeepers based on the level of experience they have working in the field.
| Experince | Salary |
|---|---|
| < 1 year | $14.30 per hour |
| 1-4 years | $15.27 per hour |
| 5-9 years | $17.38 per hour |
| 10-19 years | $18.61 per hour |
Salary by Degree
While no degree is a guarantee of salary, a bachelor’s or master’s degree can expedite advancement in the field. Not all bookkeepers hold these degrees, and advancement may be possible through other avenues. The table below illustrates the average bookkeeper salary by degree.
Accounting Salaries
BACHELOR’S DEGREE
Median Salary: $69,000
MASTER’S DEGREE
Median Salary: $91,000
Career Path Salaries
Bookkeepers who wish to advance from entry-level positions may take on more responsibilities as full-charge bookkeepers or they may pursue various types of accounting. Advancement may require additional education or certification, depending on the position sought. The table below details some career possibilities, along with an average annual bookkeeper salary.
What Are the Top States for Bookkeeper Pay?
In addition to education level and work experience, location is a factor in bookkeeper salaries, which vary from state to state. The table below lists the top states for bookkeepers, along with the annual mean wage for each location.
- DISTRICT OF COLUMBIA Annual Mean Wage: $54,970
- ALASKA Annual Mean Wage: $48,640
- CONNECTICUT Annual Mean Wage: $47,890
- CALIFORNIA Annual Mean Wage: $47,750
- MASSACHUSETTS Annual Mean Wage: $47,020
WHAT ARE THE TOP INDUSTRIES FOR BOOKKEEPER PAY?
Bookkeepers work in a variety of industries, which allows graduates a certain amount of choice when it comes to work environment. Bookkeeper salaries also vary depending on industry. The table below details the top industries for bookkeepers and the annual mean wage for each industry.
