But as your business expands, bringing on a bookkeeper can alleviate your workload and free up your time to devote to other areas of the business. 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. However, there are some key differences in the skills that these two positions require. Accounting assistants typically need to have strong research skills so that they can find information about tax laws and regulations. They also need to be able to communicate effectively with clients and other members of the accounting team.
Even so, the BLS projects an average of 183,900 openings 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. Accountants, on the other hand, take the data generated by bookkeepers and turn it into actionable insights. Accountants analyze financial trends and provide companies with a strategy for maintaining their financial health. Forbes Advisor’s education editors are committed to producing unbiased rankings and informative articles covering online colleges, tech bootcamps and career paths. Our ranking methodologies use data from the National Center for Education Statistics, education providers, and reputable educational and professional organizations.
Why People Confuse Bookkeepers for Accountants and Vice Versa
Accounting is the interpretation and presentation of that financial data, including aspects such as tax returns, auditing and analyzing performance. Bookkeepers and accountants are both critical for the financial health of a company. If you’re not tracking daily expenses, you’ll have very little information to give to your accountant and they won’t be able to make informed decisions. If you’re only focusing on expenses and not big-picture financial data, you’ll miss out on some strategic opportunities. That’s why it’s so important to understand the nuances between bookkeeping and accounting.
In 2020, they combined to account for more than 11.5% of all bookkeeping, accounting, and auditing clerks working in the United States. Depending on the employer, bookkeepers may qualify for other forms of compensation, such as performance bonuses. In 2019, Strategic Finance magazine published a report detailing a “looming crisis” in the accounting industry. The editorial asserted that not enough new bookkeepers are emerging to replace professionals aging into retirement. Department of Labor’s Occupational Handbook, some of the most in-demand accounting jobs include comptroller, accounting manager, senior tax accountant, and internal auditors. It is not an unusual career move for a bookkeeper to gain experience at a job, study, get certified, and work as an accountant.
Bookkeeper vs staff accountant overview
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 bookkeeper vs accountant salary is common. Initially, bookkeepers and accountants take the same foundational accounting courses. However, accountants go on for further training and education, which results in differences in their roles, earnings expectations and career growth.
Experienced bookkeepers, on the other hand, may not see a significant return on investment. Regardless of which bookkeeping certification you pursue, we recommend taking a preparatory course. A forensic accountant’s job is to investigate, audit, and prove the accuracy of financial documents and dealings.
Bookkeeper vs staff accountant skills
Comprehensive online courses like the Bookkeeper Launch will even teach you how to start your own bookkeeping business. Due to the additional education and training required to become an accountant, there are exclusive responsibilities that bookkeepers can’t perform. In terms of average pay rates, BLS data from May 2021 identifies the District of Columbia, Massachusetts, Washington, California, and Connecticut as the top-paying areas. Regarding overall job numbers, the BLS ranks California, Texas, Florida, New York, and Pennsylvania as the states with the highest employment levels. 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.