What is bookkeeping?
In simple terms, bookkeeping means the keeping of the financial books of an organization. Each and every financial transaction is recorded in the books daily. This is a meticulous and a time consuming task but it is essential for the efficient performance of any organization. The profits, losses, expenditures, earning, etc. are all written down in the financial books. Bookkeeping should not be confused with accounting as accounting comes after bookkeeping. In other words, accountants use the books maintained by bookkeepers to compose their financial reports. Bookkeeping should not be underestimated as this is the place where every day record of the business's money coming in and going out is recorded. It is useful in detecting financial problem areas and even in developing the future company policies based on the trends in transactions. Moreover, accurate bookkeeping is also a necessity for income tax calculations. Hence, it is officially required by the US government tax authorities.
Educational Requirements for Bookkeeping
If a person is detail oriented and good with numbers then bookkeeping is the field for him/her. Taking computer courses in high school helps abundantly in this career path as most of the bookkeeping is done using computer software programs such as QuickBooks. People can enter this profession even with a 2 year accountancy diploma or a certificate in booking after high school. Such programs quite efficiently prepare their students for practical bookkeeping using such courses as quarterly tax preparation, general ledger balancing and accounts payable and receivable. Students can earn these diplomas either on-campus, online or even by doing self study. Further degrees in bookkeeping can be earned by doing bachelors or even an MBA.
Demand for Bookkeeping
Bookkeeping is a highly demanded field as all organizations require bookkeepers to maintain their daily transactions. Companies are penalized in the US if they do not maintain their financial books efficiently and accurately. Even with the advent of the advanced bookkeeping softwares, someone is needed to carefully enter the numbers and maintain the files accurately. Hence, bookkeeper jobs are readily available.
Bookkeepers earn around $30,000 even with a diploma. This salary can be enhanced with further education in bookkeeping and accountancy. People can do an MBA and move up the ladder in the organization in areas such as purchasing, human resources, accounting, or auditing. Independent bookkeeping and accounting businesses can also be started to provide these services to companies, which prefer to outsource their bookkeeping. The bookkeeping career can even be pursued while sitting at home as bookkeeping such as medical billing can be done from home.