Depending on the employer, bookkeepers may qualify for other forms of compensation, such as performance bonuses. Bookkeepers still play important roles on accounting teams, especially in the small business world. This bookkeeper salary guide explores ways for emerging and established bookkeepers to improve their job prospects and earning power.
This compensation does not influence our school rankings, resource guides, or other editorially-independent information published on this site. Salary.com job board provides millions of Bookkeeper information for you to search for. Click learn about contra asset account on search button below to see Bookkeeper job openings or enter a new job title here. Our job description management tool- JobArchitect streamlines your job description process. Bookkeepers are needed in just about every industry and business, both large and small. If you’re a detail-oriented individual who enjoys working with numbers, then you might consider a career as a bookkeeper.
- Their work plays an important role in the operation of a successful business, which can have very many transactions in a single day, let alone a week, month, fiscal quarter, or year.
- You can also complete additional certifications to demonstrate your proficiency in advanced subtopics related to bookkeeping.
- In 2014, the average bookkeeper earned $33,042 annually, but today, they earn $40,337 a year.
- Unsurprisingly, the BLS identifies accounting, tax prep, bookkeeping, and payroll services as the industry that employs the most bookkeepers.
- What’s more, a bookkeeping certification will help you hone your skills and provide more in-depth job training.
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AIPB’s certification course usually takes six months to am i eligible for the earned income tax credit complete. In September 2022, Payscale reported an average annual base salary of about $50,430 for full-charge bookkeepers. According to BLS data from May 2021, the top 10% of bookkeepers earned median base salaries of $61,980 per year. In terms of cities, the leading destinations for bookkeepers also rank among the largest metro areas in the United States.
Compared to other major employment sectors for bookkeepers, they host relatively few jobs. As such, candidates should expect a more competitive landscape if applying for available openings. Both accountants and bookkeepers work to maintain accurate records of finances, and sometimes the terms are used interchangeably. Generally, bookkeepers focus on administrative tasks, such as completing payroll and recording incoming and outgoing finances. Accountants help businesses understand the bigger picture of their financial situation.
Your credentials show prospective employers that you’re a qualified bookkeeper and you’re willing and able to grow professionally. As a result, certification can lead to advancement opportunities in other areas of accounting, as well as finance and management positions. The answer to “How much can bookkeepers earn?” varies with experience. Payscale bookkeeper salary data from September 2022 indicates steady pay increases as their careers advance. These increases peak as a bookkeeper moves from entry-level roles into the mid-career stage. A bookkeeper with 0-2 years of experience earns an average entry-level salary of $28,506.
Average entry-level salaries approach $38,000 per year, according to Payscale. From this viewpoint, bookkeeping offers an appealing path to an accounting career. Instead of graduate degrees, bookkeepers can earn professional certifications that indicate greater ability. These include the certified bookkeeper (CB) designation offered by the American Institute of Professional Bookkeepers. However, master’s degrees in accounting are usually designed for professionals in more advanced or technical positions.
Unsurprisingly, the BLS identifies accounting, tax prep, bookkeeping, and payroll services as the industry that employs the most bookkeepers. Employers in areas with higher living costs also tend to pay a premium. However, keep in mind that those higher living costs may cancel out the financial benefits of increased bookkeeping salaries. Credentials like the CB and CPB certifications may also help bookkeepers develop the superior skills that boost their overall compensation rates.
In 2014, the average bookkeeper earned $33,042 annually, but today, they earn $40,337 a year. That works out to a 10% change in pay for bookkeepers over the last decade. The highest-paying states for bookkeepers are New York, Massachusetts, and Connecticut. The lowest average bookkeeper salary states are Arkansas, Nebraska, and West Virginia. A bookkeeping certification is an official demonstration of a person’s bookkeeping skills.
Take a bookkeeping course.
The bookkeeper salary levels listed in the Salary Guide reflect starting pay only and are based on actual placements throughout the United States. Bookkeeping still offers a stable career path that does not demand advanced degrees or extensive training. Some parts of the United States also expect to see above-average demand for qualified bookkeepers in their local labor markets. In addition, the average bookkeeper salary at companies like Lewistown Hospital and CSG are highly competitive.
Bookkeeping Certification Education and Cost
It’s a way to show your skill set to potential employers and others in your professional network. You can earn a bookkeeping certification through a college, a university or an accredited professional program. In terms of average bookkeeper pay rates, BLS data from May 2021 identifies the District of Columbia, Massachusetts, Washington, California, and Connecticut as the top-paying areas. Regarding overall job numbers, the BLS ranks California, Texas, Florida, New York, and Pennsylvania as the states with the highest employment levels. Additionally, your employer might be inclined to promote and offer higher salaries to certified bookkeepers.
Typically, double-entry bookkeeping uses accrual accounting for liabilities, equities, assets, expenses and revenue. Bookkeeping is the process of keeping track of a business’s financial transactions. These services include recording what money comes into and flows out of a business, such as payments from customers and payments made to vendors.
While these requirements may sound tedious, they could benefit your career in the long term. If you’re a seasoned bookkeeper, however, a bookkeeping certification may not be worth it. With years of experience under your belt, it’s likely that you already have the skills and credibility required to do your job well. Employers are less likely to ask for certified evidence of your skills if you’ve been working as a bookkeeper for years. What’s more, a bookkeeping certification will help you hone your skills and provide more in-depth job training.
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To better understand bookkeeper pay by state, Zippia has aggregated data across a multitude of channels including the BLS, FLC, and OPM. We then supplement that data with actual listed salaries from job posts. Finally, the data science team calculates a weighted average of these inputs to create an average pay for bookkeepers by state. Compare bookkeeper salaries for individual cities or states with the national average. Bookkeepers earn a median annual salary of $45,860, according to the U.S. However, a bookkeeper’s salary varies depending on their education, location and level of experience.