In either case, consider handling the accounting yourself or delegating this responsibility to one or a few of your current employees. Bookkeepers aren’t required to be certified to handle the books for their customers or employer but licensing is available. Both the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB) offer accreditation and licensing to bookkeepers. A bookkeeper can be the business owner, an in-house employee, freelancer or professional from an online bookkeeping service like QuickBooks Live or Bench. In September 2022, Payscale placed the national U.S. average rate for bookkeepers at $18.46 per hour.
- These detailed records may save you money down the road if you ever decide to hire an accountant.
- As a bookkeeper, your income level may vary based on your location, experience and employer.
- While it typically takes 4-6 years to become a Bookkeeper, becoming a Staff Accountant takes usually requires 2-4 years.
- This credential can boost your credibility in the eyes of potential employers, especially if you’re just breaking into the job market.
There are several types of accounting certifications that accountants obtain to expand their skill sets and gain positions within larger organizations. In addition to CPA credentials, other common accounting designations are chartered financial analyst (CFA) and certified internal auditor (CIA). There is a difference between an accountant and a certified public accountant (CPA).
Check out the following to get a better picture of their respective responsibilities. The line between where a bookkeeper role ends and https://adprun.net/ an accountant’s begins is not set in stone. However, the two either work closely together or one person can end up handling both.
Differences between bookkeeper and staff accountant education
On the other hand, accountants require more logic and problem-solving skills. With that being said, as time progresses, it is becoming increasingly the case that accountants hold at least a bachelor’s degree. In many cases, they also have a Master’s in Business Administration (MBA) or a Master of Accountancy. Bookkeepers and staff accountants have different pay scales, as shown below. Whether you hire an accountant, a bookkeeper or both, ensure they’re qualified by asking for client references, checking for certifications or performing screening tests. A CPA is an accountant who has met their state’s requirements and passed the Uniform CPA Exam.
- Bookkeepers don’t necessarily need higher education in order to work in their field while accountants can be more specialized in their training.
- Bookkeeping, in the traditional sense, has been around as long as there has been commerce ― since around 2600 B.C.
- A bookkeeper’s job is to maintain complete records of all money that has come into and gone out of the business.
- Accountants make more due to their educational background and if a CPA, their certification.
These include the certified bookkeeper (CB) designation offered by the American Institute of Professional Bookkeepers. I estimate that a bookkeeper’s salary will be less than half of an accountant’s salary. For example, an accountant with a year or two of experience might earn $60,000 per year while a bookkeeper will earn less than $30,000 https://online-accounting.net/ per year. More experienced accountants will be able to earn higher salaries but bookkeepers will not see significant salary increases. What’s more, a bookkeeping certification will help you hone your skills and provide more in-depth job training. This also provides a competitive advantage for bookkeepers beginning their careers.
Bookkeeper vs staff accountant overview
Both AIPB and NACPB require previous bookkeeping experience to qualify for their courses. Bookkeeping is a great starting point if you are interested in the field but not fully committed and want to test the waters. You may also be an ideal bookkeeping https://quickbooks-payroll.org/ candidate if you want a good job with a respectable wage and decent security but may not be looking for a long-term career. Bookkeeping offers much lower barriers to entry, and the competition you face in the job search is less fierce.
Bookkeeping vs. Accounting: How They Overlap
We believe everyone should be able to make financial decisions with confidence. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. You can also complete additional certifications to demonstrate your proficiency in advanced subtopics related to bookkeeping.
Bookkeeping vs Accounting: Key Differences
In this guide, you’ll learn what differentiates a bookkeeper vs accountant, which your business should hire, and when to employ them. In this guide, you’ll learn what differentiates a bookkeeper vs accountant, which your business should hire, and when to employ them. In September 2022, Payscale reported an average annual base salary of about $50,430 for full-charge bookkeepers. In terms of pay, bookkeepers tend to earn the most by working in niche industries. Compared to other major employment sectors for bookkeepers, they host relatively few jobs.
These are the main differences that set apart a bookkeeper vs accountant. These areas define the roles and functions of bookkeeping vs accounting and show why they’re both essential to the business. As both professions engage in managing finances, a lot of people may confuse a bookkeeper for an accountant, and vice-versa. While they work towards a common goal, bookkeepers and accountants support the business in different ways, and in different stages of the financial process. Here’s the bottom line (pun intended) — both bookkeepers and accountants provide important duties to the overall functioning of a business. In the realm of accountancy and a business’ financial positions, there are additional roles that work alongside bookkeepers and accountants.
In particular, the big four firms of Ernst & Young, Deloitte, KPMG, and PricewaterhouseCoopers offer larger salaries than mid-size and small firms. Depending on the city, you can expect to earn between $40,000 and $60,000 your first year as a Big Four accountant. While the companies do not publish salaries on their websites, the benefits can be a large draw. For example, KPMG offers employees up to 25 days of paid vacation time, telecommuting opportunities, and a robust health insurance package. The salary range for bookkeepers and accountants differ per state and on other important factors. But typically, accountants earn more than bookkeepers, and their midpoint salary is higher.
Key Differences
However, there are also several advantages of hiring a certified accounting professional in addition to or over a bookkeeper. These advantages include the benefit of a comprehensive financial analysis, a higher level of expertise, and legal assistance. Accountants can suggest recommendations and strategies to make the most out of your business financially. They can also help businesses efficiently deal with corporate taxes and any legal issues. The rate an accountant or bookkeeper charges depends on several factors.
If you’re just launching your bookkeeping career, a professional certification can set you apart from the competition. This credential can boost your credibility in the eyes of potential employers, especially if you’re just breaking into the job market. If you opt to pursue certification through a college or university, check with your chosen school’s admissions office to verify the length of the program. Some programs are asynchronous, meaning you’ll pace yourself throughout the course, and you don’t have to log in at any particular time.
