A professional accountant must ace the CPA exam and meet specific education and experience requirements for certification and employment in a public accounting firm. Bookkeeping is more about recording financial transactions, while accounting involves interpreting, analyzing, and summarizing those records. Both bookkeeping and accounting are crucial for managing finances but involve different tasks and serve distinct purposes.
Bookkeeper vs. Accountant: Salary and Growth Trends
Additionally, a staff accountant has an average salary of $54,216, which is higher than the $40,337 average annual salary of a bookkeeper. On the other hand, staff accountants typically have a bachelor’s degree in finance or accounting. To become CPAs (certified public accountants) they must meet their state’s requirements and pass the CPA exam which includes standard accounting principles and tax laws. A bookkeeper keeps the financial records of business transactions on a daily basis.
Accountant Qualifications and Education Requirements
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. This is the master file where they record or post, and keep track of sales and expenses. Ledgers can come in the form of a computerized spreadsheet, a software, or even on paper. Ultimately, what strengthens your credentials are sufficient experience and a good track record, either in bookkeeping or accounting.
Accountant Related Careers
Most states require accountants to be licensed by their state board of accountancy before they can offer services publicly. This certification requires passing an exam that covers topics such as accounting principles, payroll procedures, and tax regulations. Examples of bookkeeping duties include maintaining ledgers, reconciling bank statements, processing payrolls, creating invoices, and tracking payments from customers. In addition, bookkeepers should be familiar with basic accounting principles and computer software programs such as Microsoft Excel and QuickBooks. Bookkeepers and accountants are both essential to the financial industry, but they require different levels of qualifications.
- Bookkeepers can also get certified by the American Institute of Professional Bookkeepers (AIPB) or the National Association of Certified Public Bookkeepers (NACPB).
- Both bookkeeping and accounting play essential roles in managing financial records.
- A bookkeeping certification can yield a high return on investment, depending on a few factors.
- Programs like QuickBooks Online, FreshBooks, and Xero automate tasks such as recording transactions, managing accounts payable and receivable, and reconciling bank statements.
- Bookkeepers collect and organize the numbers that accountants rely on to do this work.
While accounting can be a lucrative long-term career, most accountants, unlike corporate attorneys or investment bankers, do not command huge salaries during the first few years. You must have a minimum of Record Keeping for Small Business 150 postsecondary education hours, or what amounts to a bachelor’s degree in accounting, and an additional 30 hours of graduate work. By checking this box, you are giving your consent for CCI Training Center to contact you regarding our services via SMS message to the phone number you provided above. Certifications like QuickBooks ProAdvisor or Certified Bookkeeper (CB) can boost credibility and earning potential. Growth brings risks—new markets, hires, or investments all require careful planning. Accountants guide sustainable expansion and navigate restructuring complexities.
How Synder can help accountants
For long-term career growth, it’s best to have more avenues open, and accounting has more growth prospects with better income potential. Higher education is necessary to succeed in this field, and the payoff on your career path also increases. Bureau of Labor Statistics, the national average salary for bookkeepers was $47,440 in 2023 bookkeeper vs accountant salary and for accountants $79,880.
- Let’s understand the careers of bookkeepers and accountants with their differences and similarities.
- Bookkeeper duties are keeping track of your finances and producing regular budget reports, so ideally, they should be knowledgeable about ways to do so.
- Other credentials accountants can get such as CFA and CIA allow them to offer specific services to businesses.
- In addition to base pay, some employers may offer bonuses or other benefits such as health insurance or vacation time.
- Their financial analyses and strategies are only as good as the data they’re provided with.
- These certifications demonstrate mastery over topics such as auditing standards, taxation laws, financial reporting practices, and ethics codes for professional accountants.
Bookkeeping and accounting are both important for tracking a business’s finances, but they serve different purposes. These differences show up in their day-to-day tasks, the skills needed for each role, and net sales the goals they work toward. The 20th century brought laws, rules, and standards to make accounting more accurate and trustworthy. Today, both bookkeeping and accounting rely on accounting software and bookkeeping software to save time and reduce errors.
- 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 bookkeeping, it’s normal to have extra hours during the busy tax season from January to mid-April.
- Technology has revolutionized both bookkeeping and accounting, streamlining processes and offering deeper financial insights.
- Additionally, an accountant has an average salary of $54,890, which is higher than the $40,337 average annual salary of a bookkeeper.
- Some bookkeeping tasks will still need a human touch, but the number of positions is expected to drop.
Main Functions: Bookkeeper vs. Accountant vs. CPA
Understanding both helps businesses choose reliable options for financial tracking and planning. Digital technology has made organizing and sharing financial records much faster and safer than using only paper. Many businesses now use specialized programs for even the smallest tasks, which has changed how bookkeepers and accountants do their jobs. While the primary difference between bookkeeping and accounting is their focus (bookkeeping is more day-to-day, while accounting is more holistic), there are other, more subtle differences.