bookkeeper vs accountant salary

If you’re just starting out as a bookkeeper, earning a certification can help you stand out from the competition. With the Google Sheets Add-On, it creates a live, real-time link between your accounting software and your custom reports. This can help accountants, bookkeepers and other members of your team to share important information without access to your accounting software. As the name suggests, bookkeepers are financial administrators who record daily transactions in a company’s “books,” or probably more accurately, in their accounting software.

In contrast, the average hourly wage of more than 1.6 million bookkeepers was $17.62 per hour, for an average full-time wage of $36,640 per year. I  estimate that a bookkeeper’s salary will be less than half of an accountant’s salary. For example, an accountant with a year or two of experience might earn $60,000 per year while a bookkeeper will earn less than $30,000 per year. More experienced accountants will be able to earn higher salaries but bookkeepers will not see significant salary increases. Caryl Ramsey has years of experience assisting in different aspects of bookkeeping, taxes, and customer service.

Discover earning potential in the field of accounting

Their team of trained CPAs and bookkeepers has helped nonprofits all over the country regain control over their finances and grow their missions. Look for a firm that provides both nonprofit bookkeeping and accounting services. While you may just need one or the other right now, you never know how your needs may change in the future. Ensuring your provider offers both services opens up the opportunity to outsource your entire financial department in the future.

Junior bookkeepers looking to establish themselves in the field are arguably more likely to benefit from certification. Experienced bookkeepers, on the other hand, may not see a significant return on investment. The BLS projects employment for bookkeeping, accounting and auditing clerks to decline by 3% by 2030. Even so, the BLS projects an average of 170,200 openings per year 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. Regardless of which bookkeeping certification you pursue, we recommend taking a preparatory course.

The Best Nonprofit Bookkeeper and Accounting Services on the Market

After earning a bachelor’s degree in accounting and becoming an accountant, career opportunities are wide open. Accountants can work in a wide variety of sectors, including private industry, public accounting, government and nonprofits. However, accountants can also choose to go into management accounting by getting a certified management accountant (CMA) certification. This designation shows a higher degree of financial management skills, making it a great option for those who work in-house at a company and want to take on a managerial role in the finance department.

bookkeeper vs accountant salary

They also need to be able to communicate effectively with clients and other members of the accounting team. Bookkeepers, on the other hand, need to have strong organizational skills to keep track of all the financial transactions made by a company. They also need to have attention to detail to ensure that all the numbers in the financial records are correct. Generally speaking, the larger the law firm bookkeeping company, the higher the pay for a given role, and the better defined your career path will be. The Big 4 accounting firms are good examples of public accounting firms where an entry-level CPA could expect to make a higher-than-average starting salary. People tend to use the terms accounting and bookkeeping interchangeably; however, the two roles require different skills and qualifications.

How does an accountant differ from a nonprofit bookkeeper?

Bookkeeping is a transactional and administrative role that handles the day-to-day tasks of recording financial transactions, including purchases, receipts, sales and payments. Accounting is more subjective, providing business owners with financial insights based on information gleaned from their bookkeeping data. There are also other credentials accountants can receive such as CFA and CIA that allow accountants to provide a specific set of services to businesses. CFAs or chartered financial analysts are knowledgeable about global markets, investment analysis, ethical financial practices, and portfolio management.

  • With many accounting automation solutions available on the market, bookkeepers have been freed from the manual tasks of data entry.
  • For example, NACPB’s certification course takes 13 weeks, and AIPB’s certification course usually takes six months to complete.
  • The top-earning 10 percent of accountants received $111,510 annually or higher, while the top 10 percent of bookkeepers received $54,310 per year or more.
  • The bookkeeper can be found working in small, medium, or large business organizations.
  • Experienced bookkeepers, on the other hand, may not see a significant return on investment.