First things first, what is a bookkeeper?
A Bookkeeper is the person that produces financial records for a business or individual. Their day-to-day tasks might involve:
- processing and recording financial transactions, such as sales receipts, invoices or expenses
- producing reports, for example annual tax returns
- checking figures and reports for accuracy and correcting any differences.
Bookkeepers can be employed in the Accounts department of a business, or find themselves working for clients either freelance, as their own boss, or as part of an accountancy practice firm.
Expecting earnings of a bookkeeper
A bookkeeper working for a business can expect to earn £18,000 to £25,000 depending on experience - entry-level positions usually don’t require any previous experience.
Self-employed bookkeepers can earn a lot more as you can set your own rates. Some virtual bookkeepers start their own business from home without experience and find a qualification helps give them credibility and confidence to build a good client base.
What skills do you need to be a good bookkeeper?
You will need to be self-motivated. You may find yourself working independently, particularly if you are self-employed or in a small business, so the ability to keep motivated will make you stand out.
You’ll also need to be a good communicator. You’ll often be dealing with suppliers, customers and clients, and may have to chase invoices or query transactions. Being clear, persuasive and concise will help you deal with these situations.
Starting out in bookkeeping
The most common career route for someone new to accountancy is to study the AAT Professional qualification. This will give you a solid base knowledge of Accounting and Finance principles, with modules dedicated to bookkeeping and preparing accounts.
AAT also offer a shorter Bookkeeping Qualification which only focuses on the core modules. This means you can qualify in a shorter period, with the option to return to the full diploma at a later date.
Can a bookkeeper become an accountant?
The distinctions between accounting and bookkeeping are subtle but very important. Bookkeepers record the day-to-day transactions of a business, whereas accountants focus more on the big picture. You would need to continue your study and work through the AAT levels or go straight onto becoming ACCA or CIMA qualified.