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In most cases, private companies do not pay more than the Big Four for young accountants with little experience. However, bookkeeping and accounting clerk jobs are expected to decline, with the BLS projecting a 5% fall in jobs over the same period. The BLS notes that job growth for accountants should track fairly closely with the broader economy. However, bookkeepers will face pressure from automation and technology that will reduce the demand for such workers. Jitasa’s bookkeeping and accounting services are specifically for the nonprofit sector.
Due to the additional education and training required to become an accountant, there are exclusive responsibilities that bookkeepers can’t perform. This guide will provide a detailed breakdown of what separates bookkeepers from accountants, so you can understand which accounting role is the best fit for your career aspirations now and in the future. For both careers, having advanced education, like a master’s degree, can make you more marketable, improve your ability to be promoted within your job, and make it easier to pass the exams for certifications.
What is the difference in salaries between a bookkeeper and an accountant?
The two careers are similar, and accountants and bookkeepers often work side by side. However, significant differences exist, like work conducted in each career and needed to be successful. The following analysis compares the education requirements, skills required, typical starting salaries, and job outlooks for accounting and bookkeepers. Entry-level positions require at least a bachelor’s degree in accounting, though some employers prefer a graduate degree.
If you’re a small business owner you likely have someone on staff (or even yourself) managing your company’s financial records and budget. These responsibilities are generally assigned to your bookkeeper or accountant. While these are extremely important roles to fill, few business owners actually understand the difference between bookkeeping and accounting. On this page, you will find further information about the factors that impact accountant salaries as well as a table outlining the best states for accountants. The distinctions between accounting and bookkeeping are subtle yet essential.
Bookkeeping
Note, they are different than Certified Public Accountants (CPAs) as they have not completed the additional educational and testing requirements necessary for that designation. In September 2022, Payscale placed the national U.S. average rate for bookkeepers at $18.46 per hour. Bookkeepers should law firm bookkeeping research local average rates to ensure they price their services competitively. But if it’s more complex, like building out your financial outlook, you might be better off with hiring an accountant. If any of these warning signs resonate with you, it may be time to hire a bookkeeper.
These topics remain hot because there’s often a lot of confusion about them. You can also look at the American Institute of Certified Public Accountants to find CPAs with skills in certain areas, such as employee benefits or personal finance.