Although people often use these two words interchangeably, they actually have different meanings. Like with bookkeepers, this amount can vary based on experience level and location of the job. Accountants must meet more stringent requirements than bookkeepers to practice professionally. Accountants have a more advanced role than bookkeepers in that they analyze data to make bookkeeper vs accountant salary recommendations about how a business can improve its operations or save money. In addition, bookkeepers should be familiar with basic accounting principles and computer software programs such as Microsoft Excel and QuickBooks. Bookkeepers don’t need any specific certifications, but you want to make sure whoever works on your company’s bookkeeping is extremely organized.
After passing the AIPB’s certification exam, you will be recognized as a certified bookkeeper. The bookkeeper job description entails maintaining the general ledger and accounts, recording transactions, posting debits and credits, running payroll and creating invoices. If you’re looking online for bookkeeping certifications, you’ve probably already run into information about accounting programs. While there are similarities between bookkeeping vs. accounting are similar, these two fields are not the same. A bookkeeper is likely to be employed at a smaller company or organization and will process a large volume of routine transactions.
Bookkeeping vs. Accounting: Job Outlook and Salary
The BLS projects employment for bookkeeping, accounting and auditing clerks to decline by 3% by 2030. Even so, the BLS projects an average of 170,200 openings per year for bookkeeping, accounting and auditing clerks. The demand for new bookkeepers stems from a need to replace those who retire and workers who transfer to other industries. Both AIPB and NACPB require previous bookkeeping experience to qualify for their courses.
It goes beyond basic bookkeeping by incorporating financial management, planning, analysis, and decision-making. Accounting is another monetary-focused profession that involves measuring, processing, interpreting, and communicating financial information about individuals, businesses, or organizations. This amount can vary depending on the type of business they are working in, their experience level, and the location of the job.
Bookkeeping vs Accounting: What’s The Difference?
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. Bookkeepers may start working for a small business to gain experience and then go back to school for a degree in accounting or finance. Enrolling in one of the best online bookkeeping classes is a smart way for those interested in this career to bolster their existing financial knowledge. In the realm of accountancy and a business’ financial positions, there are additional roles that work alongside bookkeepers and accountants.
It’s important to know how these two jobs differ, as they’re both essential to the success of the business. Their functions sometimes overlap as well, because bookkeeping is one part of the whole accounting process. If you prefer to make inferences and provide solutions, then you should consider a role as an accountant.
Expand Your Job Opportunities
The distinctions between accounting and bookkeeping are subtle yet essential. The two careers are similar, and accountants and bookkeepers often work side by side. 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 bookkeepers.
