Comprehensive Guide to Becoming a Certified Bookkeeper

Are you considering a career in bookkeeping? With businesses of all sizes relying on precise financial records, certified bookkeepers play a crucial role in today’s economy. This guide will walk you through the steps to become a certified bookkeeper, enhancing your professional credibility and improving your job prospects in this competitive field.

What is a Certified Bookkeeper?

A certified bookkeeper is a financial professional who has demonstrated expertise in recording and reporting financial transactions. They have completed specialized training and passed certification exams, proving their proficiency in areas such as:

• Financial statement preparation
• Accounts payable and receivable
• Payroll processing
• Inventory management
• Internal controls and fraud prevention

Why Become a Certified Bookkeeper?

According to the Bureau of Labor Statistics, there were approximately 1,707,700 bookkeeping, accounting, and auditing clerk jobs in the United States in 2020. While the overall job outlook is projected to decline slightly, the demand for skilled and certified bookkeepers remains strong, particularly as businesses adapt to new financial technologies and regulations.

Becoming certified can:

• Enhance your professional credibility
• Increase your earning potential
• Open up new career opportunities
• Demonstrate your commitment to the profession

Educational Requirements

What education do you need to become a bookkeeper?

High School Diploma or GED

At a minimum, you’ll need a high school diploma or GED certificate to qualify for bookkeeper roles. This foundational education provides the basic math and analytical skills necessary for entry-level positions.

Optional Degrees and Certificates

While not mandatory, pursuing additional education can set you apart from other candidates and may lead to higher-paying positions or opportunities for advancement:

• Certificate in Bookkeeping: Usually completed in 6-12 months
• Associate Degree in Accounting: Typically a 2-year program
• Bachelor’s Degree in Accounting: A 4-year program offering more in-depth knowledge

Experience Requirements

How much experience do you need to become certified?

On-the-Job Training

Many bookkeepers learn through on-the-job training, which can take up to six months to become proficient. This hands-on experience is invaluable, as it allows you to apply theoretical knowledge to real-world situations and learn industry-specific practices.

Required Experience for Certification

To become a Certified Bookkeeper (CB) through the American Institute of Professional Bookkeepers (AIPB), you must have at least two years of full-time or 3,000 hours of part-time bookkeeping experience. This requirement ensures that certified bookkeepers have a solid foundation of practical experience before obtaining their credentials.

Certifications

What certifications are available for bookkeepers?

Certified Bookkeeper (CB) – AIPB

The Certified Bookkeeper designation from the AIPB is a widely recognized credential in the field.

• Exam Requirements: Pass a four-part, multiple-choice examination covering various aspects of bookkeeping.
• Experience Requirements: At least two years of full-time or 3,000 hours of part-time bookkeeping experience.
• Code of Ethics: Sign a Code of Ethics, demonstrating commitment to professional standards.
• Course and Exam Fees: Courses often include prepaid vouchers for the exams. For example, the Certified Bookkeeper course at VolState includes exam fees and costs $2,195.00.

Certified Public Bookkeeper (CPB) – NACPB

The National Association of Certified Public Bookkeepers (NACPB) offers the Certified Public Bookkeeper credential.

• Exam Requirements: Pass a four-part exam testing bookkeeping, payroll, QuickBooks, and accounting.
• Experience Requirements: A minimum of one year of bookkeeping experience.
• Fees: $369 for members; $449 for nonmembers.

Online Certification Programs

Where can you get certified as a bookkeeper?

Here are three current US schools offering accredited Bookkeeping Certification programs:

1. Volunteer State Community College

– Address: 1480 Nashville Pike, Gallatin, TN 37066
– Certified Bookkeeper Course
– Description: 100% online course designed for experienced bookkeepers to prepare for the AIPB certification exams.
– Program Length: Self-paced, typically completed in 6-12 months
– Cost: $2,195.00, including exam fees

1. University of the District of Columbia

– Address: 4200 Connecticut Avenue NW, Washington, DC 20008
– Certified Bookkeeper Program
– Description: 100% online program that prepares students for the AIPB certification exam.
– Program Length: Self-paced, typically completed in 3-6 months
– Cost: Contact the school for current pricing

1. Ashworth College

– Address: 5051 Peachtree Corners Circle, Suite 200, Norcross, GA 30092
– Bookkeeping Career Diploma
– Description: Flexible online program that prepares students for entry-level bookkeeping positions and provides a foundation for further certification.
– Program Length: Self-paced, can be completed in as few as 4 months
– Cost: Contact the school for current pricing

Skills and Knowledge Covered

What skills will you learn in a certified bookkeeper program?

Certified bookkeeper programs typically cover the following essential skills and knowledge areas:

1. Financial Statement Preparation:

– Preparing and analyzing balance sheets, income statements, and cash flow statements
– Understanding Generally Accepted Accounting Principles (GAAP)

1. Bookkeeping Software:

– Proficiency in QuickBooks, one of the most widely used accounting software
– Advanced Microsoft Excel skills for financial modeling and data analysis

1. Accounts Payable and Receivable:

– Managing vendor payments and customer invoicing
– Reconciling accounts and handling discrepancies

1. Payroll:

– Processing employee wages and salaries
– Managing payroll taxes and benefits
– Preparing and filing payroll tax reports

1. Depreciation:

– Calculating book and tax depreciation for assets
– Understanding various depreciation methods (e.g., straight-line, declining balance)

1. Inventory Management:

– Recording and tracking inventory levels
– Implementing inventory valuation methods (e.g., FIFO, LIFO, weighted average)

1. Internal Controls and Fraud Prevention:

– Implementing systems to prevent theft and fraud
– Understanding the importance of separation of duties

Career Path and Job Outlook

What does a career in bookkeeping look like?

Bookkeepers work in various settings, including offices and remote environments, and are responsible for maintaining financial records, handling payroll, and managing accounts. According to the Bureau of Labor Statistics, the median annual wage for bookkeeping, accounting, and auditing clerks was $42,410 in May 2020.

The job outlook for bookkeepers is expected to remain relatively constant through 2026. While some aspects of bookkeeping are becoming automated, the need for skilled professionals who can interpret financial data and provide insights remains strong.

Career progression for certified bookkeepers may include:

1. Junior Bookkeeper
2. Full Charge Bookkeeper
3. Accounting Manager
4. Controller
5. Chief Financial Officer (with additional education and experience)

Remote Work Opportunities

Can bookkeepers work remotely?

Bookkeeping is considered an excellent prospect for remote, contract, and work-at-home career opportunities due to its reliance on digital tools. The American Institute of Professional Bookkeepers reports that many bookkeepers are successfully transitioning to remote work, offering their services to multiple clients or working full-time for companies that support remote positions.

Key factors contributing to the growth of remote bookkeeping:

• Cloud-based accounting software
• Secure file-sharing platforms
• Video conferencing tools
• Increased acceptance of remote work by employers

Resources

For those interested in pursuing a career as a certified bookkeeper, the following resources provide valuable information and guidance:

• American Institute of Professional Bookkeepers (AIPB)
• National Association of Certified Public Bookkeepers (NACPB)
• Bookkeeping Certification – Coursera
• Becoming a Bookkeeper – Accounting.com

By obtaining a bookkeeping certification, you can enhance your skills, increase your earning potential, and open up new career opportunities in this essential field of financial management. Whether you’re just starting out or looking to advance your existing career, becoming a certified bookkeeper can be a rewarding path in the world of finance.