What is the difference in salaries between a bookkeeper and an accountant?

Transfer-friendly programs, online courses, and dedicated services for working professionals make Franklin University a top choice for those seeking a bachelor’s degree in accounting. In  Accounting will teach you accounting best practices, industry-standard software, and financial analysis skills that will set you up for success. Once the bookkeeper posts all transactions, the accountant generates a trial balance that lists all business accounts and balances. Accountants will then use the updated trial balance to produce financial statements. For many small and medium businesses, cost is a big determining factor when choosing a bookkeeping and accounting service.

Becoming an accountant requires at least a bachelor’s degree in accounting or a related field from an accredited college or university. Many employers prefer applicants with advanced degrees such as master’s degrees in accounting or business administration with concentrations in accounting-related topics like taxation and auditing. The highest-paying industry for accountants is the securities and commodity business, where 70 workers averaged $96,260 annually in 2012, according to the BLS. An additional 23,650 highly paid accountants averaged $90,560 working for the federal government. The highest-paid bookkeepers were the 460 working for the US Postal Service, who earned $59,150 in average annual income. The 4,160 bookkeepers in the cinema and video industries came in second place, receiving average annual pay of $46,840.

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Plus, you’ll have access to a dedicated team of bookkeeping and accounting professionals to help you optimize your financial strategy and keep track of your business transactions. There’s not much room for error when it comes to managing your small business’ money. Let our FinancePal professionals handle it, and refocus your efforts on accelerating your company’s success. In general, accountants must have a bachelor’s degree in accounting or finance to qualify for an accounting role. Accountants may also get professional certifications like a Certified Public Accountant (CPA) for additional credibility and experience.

It is important to possess sharp logic skills and big-picture problem-solving abilities, as well. While bookkeepers make sure the small pieces fit properly into place, accountants use those small pieces to draw much more significant and broader conclusions. Bookkeepers are commonly responsible for recording journal entries and conducting bank reconciliations. A bookkeeper must be able to shift focus easily and catch tiny, hidden mistakes in a budget or invoice. They often bookkeepers work a few jobs for various clients if they work as a consultant.

Wage Range

The largest difference between accounting and bookkeeping roles is the required credentials, or academic qualifications, for each. Knowing the difference between bookkeeping and accounting can be tricky, especially with the interchangeability of the terms and how the duties can overlap. Bookkeeping is the process of recording all financial transactions a business makes from its opening to its closing.

Below, we’ll take a closer look at bookkeeping vs accounting, their key differences, and how working with bookkeepers and accounts can benefit your small business. Accounting bookkeeper salary is impacted by location, education, and experience. Accounting bookkeepers earn the highest average salary in Delaware, Oregon, New Jersey, California, and Massachusetts. If you have a more analytical https://simple-accounting.org/ and strategic mind, the accounting profession may provide the type of challenges that excite you. If you prefer tasks that require attention to detail, involve working with computer programs and financial data, and require good math knowledge, bookkeeping might be a better fit. The demand for qualified employees is another area where accounting and bookkeeper careers are very different.

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

According to BLS, the demand for bookkeepers is predicted to fall by 5% between 2021 and 2031 as financial software becomes more advanced. Business owners will probably still have bookkeepers, but fewer employees will be able to manage record-keeping operations. The annual wage in May 2021 for bookkeepers ranged between $29,120 and $61,980, according to BLS.

• In addition, many firms require in-house accountants to be licensed CPAs.
• If you choose to work for a company internally instead of in public accounting, the starting salary range is very broad.
• If you need an extra hand, you can also work with a team of QuickBooks-certified bookkeepers to help you manage and maintain your books virtually.
• However, accountants go on for further training and education, which results in differences in their roles, earnings expectations and career growth.
• Alternatively, they may show evidence of 3,000 hours of freelance or part-time bookkeeping work.

However, in order to complete your corporate taxes, create financial statements and so on, you will also need to have an accountant at some times during the year. Many small businesses choose to outsource these tasks so that they only pay an accountant when they need to use their services. Earning accounting certifications can expand your job opportunities, increase your earning potential and help with career advancement. Below we describe a few of the most popular accounting certifications and their requirements. Note that these are just a handful of the certifications available to accountants. Besides their differing job descriptions and daily responsibilities, bookkeepers and accountants have a few additional distinctions that are important to note.

The main difference between a bookkeeper and an accountant is that a bookkeeper records transactions while an accountant provides strategic advice based on their analysis of these transactions. On average, accountants make $60k-$90k annually while the average bookkeeper’s https://simple-accounting.org/bookkeeping-vs-accounting/ salary is between $30k and $50k. Most states require accountants to be licensed by their state board of accountancy before they can offer services publicly. While bookkeepers may not need any certifications at all, a license is non-negotiable for accountants.