what is a bookkeeper?
As a bookkeeper, you manage financial records. Some businesses may still write each transaction down in an actual book, but in modern times, many of the "books" you keep will be digital files. You keep track of every time money is spent or received. Your job may also include receiving and storing financial documents, such as invoices and receipts. In addition to creating financial statements, some bookkeepers also audit accounts or manage the payroll.
Every business uses bookkeepers, from fashion designers to sports bars and aerospace manufacturers. Bookkeepers might work for small local businesses or large international corporations. Since this job is so essential to managing a business, there are many different types of bookkeeping jobs to choose from.
bookkeepers vs. accountants
Accountants and bookkeepers are often mixed up because they have a similar focus on managing a company's finances. However, bookkeepers are specialized accountants that focus on the small details of finances. Accountants often look at big-picture financial trends, while bookkeepers focus on collecting, sorting and analyzing data. Bookkeepers handle day-to-day financial tracking and record keeping. They often need less formal certifications than accountants and may report to an accountant supervisor.
Would working as a bookkeeper suit your record-keeping and analytical skills? Then read on to find out what competencies and qualifications you need to thrive in a bookkeeper role.
bookkeeper jobsaverage bookkeeper salary
According to Job Bank, the average salary of a bookkeeper is $55,114 per year, which translates to $22.81 per hour. When you work in an entry-level position, you earn $38,730 per year. While the earning is quite low, it allows you to build your skills and gain experience to move to mid-level positions with better compensation. Experienced bookkeepers with many years of experience make up to $55,000 annually.
how to increase your salary as a bookkeeper
You can increase your bookkeeper's salary by working longer hours or taking on jobs with additional responsibilities. Some industries pay higher salaries due to the complexity of responsibility. For instance, working in the insurance or banking sectors attracts higher salaries than working in a small business. Some locations also have higher earnings because of an increased demand for the role. Due to higher hourly rates, the best regions to work in as a bookkeeper are Quebec, Alberta, Ontario and Manitoba.
You should also consider the size of the company when finding a job. Small businesses pay less due to the limited resources and minimal work involved. However, large companies have higher hourly rates, resulting from the complexity of the duties associated with the role.
types of bookkeepers
There are different types of bookkeepers based on the types of records they keep. Some bookkeepers handle all departments, while others at bigger companies may only focus on one area. Some of the different records a bookkeeper can focus on include:
- accounts payables: as a bookkeeper, you help a business keep track of its bills and debts. You ensure the company’s obligations to suppliers and other stakeholders are met on time to avoid interest charges.
- accounts receivables: you keep track of the cash flow in the business by ensuring invoices are issued on time. When you collect cash on time, you can reduce bad debts and improve the business's liquidity.
- payroll: you can specialize in managing the company payroll as a bookkeeper. You keep records of employee work hours and ensure they are paid on time.
working as a bookkeeper
Are you a fan of working with numbers? Then check out the duties, tasks and responsibilities of bookkeepers.
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what does a bookkeeper do?
Keeping financial records might initially seem simple, but bookkeeping can be surprisingly complex. Depending on your job, you'll end up doing one or more of these duties:
- keeping ledgers: all bookkeepers keep track of a set of financial ledgers. In these ledgers, you'll note each time money is spent and each time money is received. The entries include various details, such as the date, relevant bank account, amount of money and the purpose of the transaction.
- preparing financial statements: bookkeepers use their ledgers to draw up weekly, monthly, quarterly and annual statements. These statements analyze records to provide details such as overall profit and total expenses.
- managing invoices: many bookkeepers function as accounts receivable and accounts payable clerks. They draft invoices to send to customers or debtors and ensure the company's bills are paid.
- addressing bank discrepancies: if any money goes missing, your bookkeeping records are extremely important. Your job may include checking to ensure that bank accounts have the right amount of money and tracking down where missing funds have gone.
- discussing cash flow: some managers regularly meet with bookkeepers to discuss the company's finances. You'll do things like mention recurring causes of profit loss or attempt to forecast sale income for the upcoming months.
- additional duties: if you work at a small business, you might do additional financial tasks. Some bookkeepers help prepare tax returns or analyze time cards to calculate payroll.
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work environment of a bookkeeper
Bookkeeping is almost always an office job. The typical bookkeeper gets to sit behind a desk and spends time writing, reading and working with computer software. Usually, the job only requires travel if you work with multiple branches. A great thing about bookkeeping is that the work can often be done remotely. If you're interested in working from home, remote bookkeeping jobs are available.
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who are your colleagues?
As a bookkeeper, you work with accounting clerks, accounting technicians and accountants. In an office setup, you are likely to interact with administrative assistants, receptionists and data entry clerks. These professionals provide support in performing your tasks and ensuring proper reconciliation of accounts.
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bookkeeper work schedule
Because bookkeeping is such an essential task, you get to choose from various work schedules. In some companies, bookkeeping is a full-time job. You work from 9 am to 5 pm on weekdays and get weekends off. Other jobs offer chances to perform part-time bookkeeping. You come in for a few hours each week to update the books and can choose your schedule. Overtime is rare in the bookkeeping world. This job typically follows the same patterns every day. However, you work slightly longer hours in some industries; for example, when making quarterly reports, preparing for the tax season or solving sudden financial discrepancies.
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career opportunities as a bookkeeper
The job demand for bookkeepers is fairly neutral. In regard to the outlook, the rise in automated accounting software may result in slightly reduced job growth rates. However, that doesn't mean the industry is on the decline. There are excellent opportunities for bookkeepers who also provide analytical and advisory services. Although basic data entry might be handled by software, experienced bookkeepers who are capable of explaining what all the data means are still in demand. Becoming a bookkeeper gives you valuable financial experience that you can use to apply for other jobs, too. With a little extra training, bookkeepers transition to other roles, such as purchasing managers, accountants, or financial advisors.
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advantages of finding a job as a bookkeeper through randstad
Working with Randstad offers you a range of benefits.
- always a contact person you can fall back on and ask for help from
- many training opportunities
- a range of jobs in your area
bookkeeper skills and education
Bookkeepers need the following qualifications:
- educational qualifications: while most employers hire bookkeepers with a secondary school qualification and provide on-the-job training, a college program makes you competitive in the job market. Pursue a college course in bookkeeping, accounting or another relevant field. Alternatively, pursue a recognized professional accounting program like Certified General Accounting or Chartered Accounting. When you finish the first level, you can become a bookkeeper.
- work experience: gain relevant work experience by working as a financial or accounting clerk. Your experience improves your chances of getting a higher-paying job.
competencies and characteristics of bookkeepers
Successful bookkeepers are analytical, focused, and can easily pay attention to even the smallest details. To perform well at your job, you need the following skills:
- mathematical skills: although bookkeeping software will handle a lot of calculations for you, it is important to fully understand concepts like addition and subtraction. Mathematical skills make it easier to quickly estimate things and tell at a glance if a ledger needs to be corrected.
- technological skills: modern bookkeepers spend a lot of time working with computer software. You need knowledge of programs like Microsoft Excel and QuickBooks.
- attention to detail: as a bookkeeper, you focus on small details and stay focused, even when performing repetitive tasks. Good bookkeepers are meticulous record-keepers who put a lot of effort into ensuring all records are correct.
- organizational skills: to avoid any issues, you need excellent organizational skills. Good bookkeepers organize numbers, documents, files and more.
- time management: many bookkeepers work independently. You sit by yourself and create goals to ensure you finish all your work in a timely manner.
FAQs
Here, you will find the answers to the most frequently asked questions about the profession of a bookkeeper.
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what are the duties of a bookkeeper?
As a bookkeeper, you oversee a company's financial data, like recording transactions such as accounts receivables and payables. You post the transactions to their various accounts and conduct daily banking activities. Bookkeepers also reconcile financial reports to third-party records, such as bank statements. Sometimes, you perform payroll duties.
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how much does a bookkeeper make?
As a bookkeeper, you earn $22.81 per hour or an annual salary of $44,479. The earnings fluctuate depending on your experience and the complexity of the tasks you handle. When you are new to the position, you take home $38,730 per year, while experienced bookkeepers earn over $55,000 annually.
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is bookkeeping a stressful job?
Working as a bookkeeper can sometimes be stressful, especially when reconciling financial records and balancing company accounts. However, you have a good chance of success and can ensure operations run smoothly if you are proactive in your duties.
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do bookkeepers need a licence in Canada?
You can provide bookkeeping services in Canada without any accreditation or designation. While you don't require a licence, you need certification and some training to become a bookkeeper. Professional certifications help you advance your career.
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how do you become a bookkeeper?
The minimum requirement to become a bookkeeper is the completion of secondary school. You can join an apprenticeship and learn on the job or complete a college program in bookkeeping or accounting. After you complete the first two years of your professional accounting program, you qualify for a job as a bookkeeper.
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how do I find a job as a bookkeeper?
Finding a job near you as a bookkeeper is easy. Search our job offers. Then submit your application using the ‘Apply’ button top right on the page. No jobs available right now? Send us your resume and we'll pass it on to a recruiter who will contact you if an opportunity opens up for you.
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