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

To become one, you have to either have worked at the IRS or pass an EA examination. As an accountant, you may have to crunch numbers, but those are not the only skills needed. It is important to possess sharp logic skills and big-picture problem-solving abilities, as well.

All of Herzing’s accounting programs can be completed online on your schedule, at your pace. It’s a cost-effective way to get foundational knowledge in a subject and can help you qualify for an entry-level job. Additionally, if you would like to pursue your CPA, a degree in accounting is often the more preferred choice.

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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. However, if your accountant does your bookkeeping, you may be paying more than you should for this service as you would generally pay more per hour for an accountant than a bookkeeper.

So your sales team might use the POS and quote features of your accounting package, and your bookkeeper and financial administrators might enter invoices and prepare payroll. If they plan to be a CPA or Certified Public Accountant, they will also complete additional studies and pass an exam. While some accountants do perform bookkeeping functions, their training allows them to provide additional insights and to be instrumental in planning for future purchases, growth, expansion and more. Outside of the finance and accounting world, many people are confused about exactly what the different roles and designations mean.

Bookkeeper Role

In addition to working for corporations or businesses, accountants often find employment with financial firms, insurance agencies, auditing companies and government entities. Most importantly, expected salary, growth prospects and additional career opportunities are different for accountants than for bookkeepers. Bookkeepers and accountants generally need different law firm bookkeeping degrees and training to begin their careers. Though they both work with financial statements, their daily duties are distinct, and they rely on different software, tools and processes. Bookkeeper salaries vary state by state (see our chart below), and depending on where you live, you could be paying a large difference in one place versus another.

This decline can be attributed to the role of technology in automating many of the transactional functions of bookkeepers. Popular software has made it possible for many business owners to track their financial information, while accountants provide deeper insights and advice that software can’t replicate. For aspiring finance professionals, the question of bookkeeper vs. accountant is common.

When You Need a Bookkeeper vs. Accountant vs. Controller vs. a CFO

A key difference between a diploma and a degree in accounting is required coursework. Bookkeepers are responsible for entering the data into the books and keeping the records up to date. It involves tracking all income and expenses, paying bills, invoicing, tracking payroll, etc.

Also, the American Institute of Professional Bookkeepers offers a Certified Bookkeeper (CB) accreditation. Bookkeepers and accountants can learn specialized skills as they progress through their degree programs and gain on-the-job experience. That being said, if this is your chosen field, it is crucial to make one important decision at the very start. 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. The answer depends on where you are in your career, along with a few other factors.

The lowest 10% of accountants earned less than $44,480, and the highest 10% earned more than $124,450. 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. As such, candidates should expect a more competitive landscape if applying for available openings. The U.S. Bureau of Labor Statistics (BLS) groups bookkeepers with accounting and auditing clerks in its job-related data.

• Let us know what type of degree you’re looking into, and we’ll find a list of the best programs to get you there.
• CFAs or chartered financial analysts are knowledgeable about global markets, investment analysis, ethical financial practices, and portfolio management.
• That’s why it’s not a bad idea to hire a bookkeeper first to get those services at a minimum and then hire an accountant later to just handle the taxes.
• Junior bookkeepers looking to establish themselves in the field are arguably more likely to benefit from certification.
• AIPB certification requires bookkeepers to have at least two years of full-time work experience and pass a national exam.

Bookkeepers also received higher pay in the District of Columbia than in any state. At $51,440 per year, however, bookkeepers’ income fell short of average accountant pay by almost $36,000. The top-paying state for bookkeepers was Connecticut, where salaries averaged $42,190 per year. Earning your bachelor’s degree in accounting is the first step to a life-long career in the field. To maximize earning potential and secure long-term job stability, it’s worth pursuing a career as an accountant. Accountants often get CPA licenses; many big accounting firms require accountants to gain this certification.

Bookkeeping vs. accounting

CIA or certified internal auditor is an accountant who is certified in conducting internal audits. CIAs specialize in the accounting cycle process that involves security monitoring and financial risk assessment. CPAs are more specialized in tax codes and can represent clients before an Internal Revenue Service audit. For CPAs to maintain their accreditation, they must also maintain ongoing educational requirements. When it comes to long-term growth, bookkeepers should look to gain the qualifications needed to become an accountant. The BLS is committed to providing data promptly and according to established schedules.