Before investing in a course though, it might make sense to work through some free resources, like these at AccountingCoach.com. Most free courses will give you a baseline technical education to feel comfortable doing the work, but won’t cover the “business” side of becoming a bookkeeper. The first step to getting started is making sure you have a proper education and understanding of bookkeeping and accounting rules. But if it’s more complex, like building out your financial outlook, you might be better off with hiring an accountant. For example, a Certified Public Accountant (CPA) is paid more than a traditional accountant due to having to meet higher education and licensing requirements depending on their state. Whether you opt for basic bookkeeping or full-service bookkeeping and accounting, either option can help you be better prepared come tax season.
Hourly Salary from Job Postings for Bookkeepers
Depending on the employer, bookkeepers may qualify for other forms of compensation, such as performance bonuses. Bookkeepers still play important roles on accounting teams, especially in the small business world. This bookkeeper salary guide explores ways for emerging and established bookkeepers to improve their job prospects and earning power. Eight key factors will impact the hourly rate you’ll charge for your services. In Kate’s case, she earned an Advanced Pro Advisor certification from Quickbooks.
Client Size
- Bringing someone on as an in-house full-time employee requires extra costs on your end, such as benefits and health care, whereas contractors are not entitled to these perks.
- As an industry expert, you might help them recognize needs and opportunities.
- Full-service bookkeeping is everything you’d find in basic bookkeeping with additional accounting services and financial statement analysis.
- Kate has deliberately built her business around clients that allow her to be flexible with her time.
- Visit our other pages focused on salary and education for bookkeepers.
- The states with the lowest hourly rates for bookkeepers are Louisiana and Georgia, at $26 to $28/hour.
In 2014, the average bookkeeper earned $33,042 annually, but today, they earn $40,337 a year. That works out to a 10% change in pay for bookkeepers over the last decade. A bookkeeper with 0-2 years of experience earns an average entry-level salary of $28,506.
Bookkeeper Salary by Global Country
These accounting tasks include preparing financial statements and filing taxes. Full charge bookkeepers typically work for small-to- medium-sized businesses and can be assisted by an external CPA on more complex what is a bookkeeper transactions. One of the most important considerations of those who want to become a bookkeeper is the average bookkeeper salary. Today’s article shares how much bookkeepers make across the United States.
Types of bookkeeping: Basic vs. full-service accounting
Her next step was to create a dedicated website, appropriately named BookkeepingSideHustle.com. She’s already hired one subcontractor to help with two of her clients. So far it’s working out well, and she feels great about lifting some of that work off herself. For that first client Kate secured at the speed networking event, she charged $20 per hour.
We recommend QuickBooks Online, which we ranked as the overall best small business accounting software. If you decide to become certified as a QuickBooks ProAdvisor, you’ll have the added benefit of a free subscription to QuickBooks Online Accountant. The American Institute of Professional Bookkeepers (AIPB) certification program is ideal for someone who doesn’t have any formal education in bookkeeping. Certification exam and materials are $610 for nonmembers and $515 for AIPB members. Upon completion of all certification requirements, you’ll earn the designation of Certified Bookkeeper (CB), which you can include on your business cards and marketing materials. According to the job site Indeed, the average full charge bookkeeper salary in the United States is $46,090.
- Depending on the industry, you might be able to extend your services to include cost accounting for projects and jobs.
- But if it’s more complex, like building out your financial outlook, you might be better off with hiring an accountant.
- The highest-paying states for bookkeepers are New York, Massachusetts, and Connecticut.
- Depending on the type of accountant, years of experience, and certifications, you could be paying a pretty penny.
At a Glance: Salary & Jobs for Bookkeepers
Regarding overall job numbers, the BLS ranks California, Texas, Florida, New York, and Pennsylvania as the states with the highest employment levels. Unsurprisingly, the BLS identifies accounting, tax prep, bookkeeping, and payroll services as the industry that employs the most bookkeepers. Credentials like the CB and CPB certifications may also help bookkeepers develop the superior skills that boost their overall compensation rates. Instead of graduate degrees, bookkeepers can earn professional certifications that indicate greater ability.
Another option is to work as an in-house bookkeeper, which typically earn a salary of $49,672 per year, or the national average of $24 per hour. However, depending on where you live, average salaries can range from $71,500 to $27,500 per year. Whether or not you’re self-employed is a major factor in how much you make as a bookkeeper. For W2 workers, the average hourly rates are closer to $20/hour, while self-employed bookkeepers earn closer to $30/hour. While many self-employed bookkeepers work remotely, if you’re providing services locally, hourly rates vary state-by-state. States like Massachusetts and Washington have the highest hourly rates for bookkeepers at $40+/hour.
One challenge with any freelance business is how to connect with clients. In the US, there are no formal certifications required to call yourself a bookkeeper. A paid course may accelerate your progress and give you confidence, but there’s always a way for bootstrappers to get started on the cheap. However, be aware that business size does affect a bookkeeper’s workload and may lead to you paying more or even for a second bookkeeper to alleviate some of that burden. There are two main types of bookkeeping to be aware of when deciding what type of bookkeeper to hire.