As a creative business owner, it can be overwhelming to do all the daily tasks on your own. This is why I strongly recommend you to evaluate if you should do the bookkeeping and taxes yourself, or hire a professional.
There are several different levels of bookkeepers. Each of them know the basics, but the more advanced types of bookkeepers can even do tax prep and other skilled operations, like financial statements.
Here are the 3 main types bookkeepers so you can find the best one for your business.
1. General Bookkeeper
This is a person a person who deals with financial transactions and postings for a company or individual. Their knowledge can include easy single-entry bookkeeping or more detailed double-entry bookkeeping, and they will be familiar with financial software like Quicken or Quickbooks.
A general bookkeeper is responsible for recording all transactions into the general ledger, posting invoices and payments and keeping up with monthly bank reconciliations.
This type of bookkeeper can start at an entry level position, and move all the way up to basically running the whole financial department — depending on their talent and knack for organizing the numbers. You can start out with little-to-no-experience in this field, although researching or taking a few classes is very beneficial.
The salary for basic bookkeeping depends on your location, but starts around $28,000 annually. It may be more in an area like California or a little less in Georgia.
There’s not a requirement for continuing education or staying up-to-date on anything in particular. If you choose to do any research on your own then all the better!
2. Full Charge Bookkeeper
This is a person who has some many of the same responsibilities as a regular/general bookkeeper. The few differences are that they have to prepare financial statements, and in most cases handle payroll.
They usually handle the financial transactions for small-to-medium sized companies and have a higher level of experience based on the fact they may have taken a few accounting courses or classes.
The starting salary for a full charge bookkeeper is around $35,000 annually. And like with a general bookkeeper, there aren’t any requirements for keeping up-to-date on education or changes.
3. Certified Bookkeeper
This type of bookkeeper is much more knowledgeable. They handle everything that general and full charge bookkeepers do, on a daily basis, and lots more.
A CB must have at least 2 years (proven) experience working in the accounting field, and pass a four part national exam. They are expected to prepare all the financial and income statements, keep up with daily transactions, accounts payable and receivable, general ledger and any other accounting needs.
I have been a Certified Bookkeeper (CB) for the past 5 years and received my training through the American Institute of Professional Bookkeepers.
Certified Bookkeepers qualify for the CB title after their name, much like a CPA title. They are responsible for payroll and reporting to the state, quarterly tax payments, and with prepping all the year-end tax documents and financial statements.
To maintain the CB title, you have to stay current on continuing education and changing tax laws. The starting salary for a certified bookkeeper is $44,000 annually and can be as much as $85,000 annually depending on location.
Finding the Right Bookkeeper for Your Business
Bookkeepers can be called many things; head bookkeeper, junior accountant, accounting clerk, and even “bean counter.” But the job description is basically the same, to help run the daily books for businesses and individuals.
Bookkeepers are a very vital part of keeping a business running smoothly.
If you are just starting out, you might look into a less educated and less expensive bookkeeper/accountant. One that you can work hand in hand with as the business grows.
Otherwise, if you are looking for a more advanced bookkeeper, you will want to go with a Certified Bookkeeper (like me!). They will have a lot more knowledge, expertise and experience under their belt.
Salary Resources: If you’re looking to become a bookkeeper and want to know exactly how much you’ll be getting paid, check out this salary calculator from Payscale.
