It will confirm the license and check for any disciplinary action taken against a potential CPA. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years.

Coursework and other continuing education programs support skill development and encourage professional networking, which can also expand your job opportunities. A bookkeeping certification can yield a high return on investment, depending on a few factors. Here are a few things to consider before obtaining a bookkeeping certification. Both AIPB and NACPB require previous bookkeeping experience to qualify for their courses.

In this guide, you’ll learn what differentiates a bookkeeper vs accountant, which your business should hire, and when to employ them. Accountants can become a Certified Public Accountant (CPA) by passing the Uniform Certified Public Accountant exam. It’s the bookkeeper’s task to record all the sales and purchases the business made in the ledger and to provide the supporting documents needed.

An accountant can be considered a bookkeeper but a bookkeeper isn’t considered an accountant without the proper education and certification. The biggest difference between the two is the educational background, certification, and licenses. Bookkeeper and accountant are terms that are sometimes used interchangeably and while what they do may overlap at times, there are some very distinct differences between the two. The two roles can have a significant impact on the success of your business. In this guide, you’ll learn what differentiates a bookkeeper vs accountant, which your business should hire, and when to employ them.

• They also provide insights about the company’s overall financial health to business owners and other stakeholders.
• The first thing to figure out is whether you need an in-house bookkeeper or an outsourced one.
• Julia is a writer in New York and started covering tech and business during the pandemic.
• Credentials like the CB and CPB certifications may also help bookkeepers develop the superior skills that boost their overall compensation rates.

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. For example, a certification from California State University, Fullerton costs $2,195.

Skill Building Games for Bookkeepers and…

They should understand your industry and the unique needs and requirements of small businesses. AIPB certification requires bookkeepers to have at least two years of full-time work experience and pass a national exam. To maintain the credential, bookkeepers are required to engage in continuing education. Both accounting and bookkeeping play an important financial role in business, there is a difference between the two.

• Industry newcomers tend to use the terms “bookkeeper” and “accountant” interchangeably, but there are a few important distinctions between the two.
• In the US, the salary for a bookkeeper ranges between $37,427 and $46,820 or an hourly rate of $18 to $23.
• An accountant can be considered a bookkeeper, but a bookkeeper can’t be an accountant without proper certification.

If you want to become a CFA, you need to pass three exams, including CFA level 1, level 2, and level 3. Bookkeepers don’t need a special certification, but a good bookkeeper is important for an accountant to have accurate financial records. Bookkeeping focuses on recording and organizing financial data, including tasks such as invoicing, billing, payroll and reconciling transactions.

While they work towards a common goal, bookkeepers and accountants support the business in different ways, and in different stages of the financial process. If an individual wants to work at a public accounting firm, becoming a CPA is a must to advance to management. If an accountant wants to work for a single company, they can advance to management and beyond without a CPA license.

What’s the difference between a staff accountant vs a bookkeeper?

A typical bookkeeping certification course takes several weeks to complete. For example, NACPB’s certification course takes 13 weeks, and AIPB’s certification course usually takes six months to complete. There are several telltale signs that you might need to hire professional bookkeeping and accounting help. Generally, a bookkeeper’s formal education will be less than a four-year college degree. Accountants generally have a 120 or 150 credit college degree including at least 30 credits of accounting courses plus 30 credits of other business courses. An enrolled agent (EA) is a tax professional authorized by the United States government.

How Can a Bookkeeper Become an Accountant?

The top-paying state for bookkeepers was Connecticut, where salaries averaged $42,190 per year. The differences between Bookkeepers and Staff Accountants can be seen in a few details. While it typically takes 4-6 years to become a Bookkeeper, becoming a Staff Accountant takes usually requires 2-4 years. Additionally, Staff Accountant has a higher average salary of $54,216, compared to Bookkeeper pays an average of $40,337 annually. One possibility is to start out by hiring a bookkeeper to handle all of the books and financial reporting and then hire a CPA down the road to handle your taxes during tax season. Both can be a huge benefit as your business grows and the finances become more time-consuming and complex.

Similar Jobs to Bookkeeper

Accountants and bookkeepers work with numbers and financial data all day long. However, just like with bookkeeping, expertise and accreditation affect those numbers as well as how in-depth and specialized your accounting needs are. Some accountants request a fixed price depending on the service while some charge hourly. The cost of hiring and maintaining a bookkeeper varies based on the needs of the business, the bookkeeper’s level of expertise, and the location of your business.

But if you work in a very tax-specific area, you might think of hiring both professionals for accounting and bookkeeping needs. In the U.S. accountants need to have at least an undergraduate degree in accounting, or more rarely in finance or business. Those wishing to work for larger companies pass the examination necessary to become a Certified Public Accountant (CPA) granted by The American Institute of Certified Public investment income taxes Accountants (AICPA). Certified Public Accountants can represent their clients before the IRS, work for a public company, and assist with an array of official bureaucratic and financial matters on all levels. Typically, professionals in bookkeeping and accounting spheres work together. Bookkeepers who are interested in switching jobs but do not have a college degree might consider becoming an EA after a stint with the IRS.

She is also experienced in setting up corporations with the State Corporation Commission and the IRS. There are also other credentials accountants can receive such as CFA and CIA that allow accountants to provide a specific set of services to businesses. CFAs or chartered financial analysts are knowledgeable about global markets, investment analysis, ethical financial practices, and portfolio management.