Should I Become a Certified Bookkeeper?
Bookkeepers keep track of financial records for companies and organizations. To ensure updated and accurate financial statements, they must understand how to use spreadsheets and database software programs. Financial statements include expenditures, debts, receipts, accounts payable and receivable, invoices, and profits. Travel may be involved for those who work for multiple clients. Depending on the position, overtime hours might be required at certain times of the year. The U.S. Bureau of Labor Statistics reported the median annual salary for bookkeeping, accounting, and auditing clerks was $41,230 in May 2019.
Bookkeeper Requirements
Degree Level | High school diploma or equivalent; associate or bachelor’s for advancement |
Degree Field(s) | Bookkeeping, accounting, business, or related field |
Licensure/Certification | Voluntary certification a plus |
Experience | 2+ years (for certification) |
Key Skills | Math and basic computer skills; detail-oriented |
Median Annual Salary (2019) | $41,230* |
*Source: U.S. Bureau of Labor Statistics
To be a bookkeeper, you need a high school diploma. Certification will then demonstrate your knowledge and skills in the field. You need two years of experience to be eligible for bookkeeping certification. Bookkeepers should also be detail-oriented and have math skills and basic computer skills.
Steps to Become a Certified Bookkeeper
How long does it take to become a bookkeeper? While it varies depending on the situation, here are steps you can follow to become a certified bookkeeper:
Step 1: Acquire a High School Diploma
Bookkeeper education begins with attaining a high school diploma. In fact, a high school diploma is the minimum educational requirement needed in order to become a bookkeeper. While enrolled in high school, you need to take courses related to mathematics, computers, accounting, and English. This will lay the necessary groundwork to pursue training at the next level or find employment.
Even though the minimum bookkeeper education requirements do not include post-secondary education, aspiring bookkeepers should consider a bookkeeping degree at the certificate or associate’s level. Certification for experienced bookkeepers is available through the American Institute of Professional Bookkeepers. These programs will teach you how to record costs, value inventory, calculate depreciation, analyze financial statements, and use software programs. Courses will cover topics in QuickBooks, Microsoft Excel, bookkeeping, business math, and payroll administration.
Step 2: Gain On-the-Job Bookkeeper Training
After being hired, bookkeepers are often given extensive job training by their employers. New bookkeepers are paired up with an experienced bookkeeper; new employees will observe work policies and learn how to perform the necessary operations associated with bookkeeping. Each employer will have different policies or methods for conducting work, so it is important that bookkeepers learn how the work is performed.
Step 3: Attain Bookkeeping Certification
To acquire the Certified Bookkeeper (CB) designation through the American Institute of Professional Bookkeepers, you must have two years of bookkeeping experience. You need to follow the code of ethics set in place by this organization and pass an examination to earn certification. The examination to become a Certified Bookkeeper is divided into four parts. There are preparation courses available online and at colleges to prepare you for certification.
Step 4: Continue Training and Education to Advance Your Career
Continued educational and vocational training in bookkeeping, accounting, or business administration offers bookkeepers the opportunity to become accountants or auditors. Specializing in growing industries, such as health care, insurance, hospitality, or financial services, also widens career opportunities.
How to Get a Bookkeeping Degree
Although only a high school degree is necessary to become a bookkeeper, it is very common for aspiring bookkeepers to acquire a post-secondary degree. Although there is neither a bookkeeping degree nor a bookkeeping school as such, an associate’s degree or a bachelor’s degree in accounting is a strong choice for future bookkeepers because it fosters many important skills for this field. Thus, instead of going to a dedicated bookkeeper school, prospective bookkeepers can often find relevant degree options at local colleges and universities. A degree in accounting will provide classes on subjects such as auditing, public accounting, and cost accounting, which further develop a bookkeeper’s skills and prepare individuals for jobs as bookkeepers. Furthermore, only a small percentage of bookkeepers hold a bachelor’s degree, which means that those who do acquire a bachelor’s degree can distinguish themselves from the majority of their peers and showcase their hard work and education when applying to bookkeeping jobs. Post-secondary degrees in accounting are frequently offered by public universities and community colleges, which make them an accessible option to prospective bookkeepers.
Bookkeeper Certification Options
Currently there are multiple options for gaining a bookkeeper certification or pursuing other relevant certifications for bookkeepers:
- American Institute of Professional Bookkeepers (AIPB)
- National Association of Certified Public Bookkeepers (NACPB)
- College and university programs
- Accounting software certification
Both the AIPB and the NACPB offer bookkeeping certification which is conferred after various requirements are met, including passing an exam. After these requirements are satisfied, the AIPB and the NACPB confer the titles of Certified Bookkeeper (CB) and Certified Public Bookkeeper (CPB), respectively. Various colleges and universities offer bookkeeper specialization programs which usually include taking a few classes and confer a bookkeeper certification, although these programs confer no titles. Bookkeepers may also find it useful to advance their careers by becoming certified in the use of certain accounting software. Certification in the use of accounting software can distinguish a bookkeeper and open up new job opportunities.
Bookkeeping Exam
The American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB) both offer options to become certified bookkeepers, and both including passing an exam.
Title Conferred | Cost of Exam | Cost of Study Materials | Registration/Application Fee | Membership Fee (annual) | |
AIPB Exam | Certified Bookkeeper (CB) | $200 | $314 ($254 for members) | $60 ($25 for members) | $60 |
NACPB Exam | Certified Public Bookkeeper (CPB) | $600 ($400 for members) | $1,297 ($997 for members) | $100 | $100 |
Bookkeeper Exam Requirements
Anyone can take the certified bookkeeping exams sponsored by the AIPB and by the NACPB. As far as scoring goes, the first two parts of the AIPB exam can be passed with a 75% or higher grade, while the second two parts require a 70% or higher grade. For the NACPB exam, all parts require a 75% or higher grade to pass. However, passing an exam is not the only part of becoming certified. To receive full certification by either the AIPB or the NACPB, bookkeepers must provide evidence of work experience, sign a code of conduct, and meet requisite education levels.
Bookkeeper Certification Exam Registration
In order to take the exam offered by the AIPB, one must register an application to become a Certified Bookkeeper, and this registration costs $60. Once this application is processed, the exam can be taken. In contrast, the NACPB requests that applications to be recognized as a Certified Public Bookkeeper only be submitted by those who have already passed their exam. The NACPB application costs $100.
Bookkeeper Exam Preparation
Both the AIPB and the NACPB offer exam preparation courses designed to prepare bookkeepers for taking teach organization’s respective certification exam. The AIPB study materials cost $314 for non-members, while the NACPB materials cost $1,297 for non-members. The AIPB offers members a discount of $60 for these materials, while NACPB members receive a $300 discount on NACPB study materials. Membership in the AIPB costs $60 annually, while NACPB membership costs $100 annually.
Exam Composition and Timing
Both the AIPB and the NACPB certified bookkeeping tests are taken in four parts. The AIPB exam includes the following four sections: Adjustments and Error Correction, Payroll and Depreciation, Inventory, and Internal Controls and Fraud Prevention. Parts one and two have a two-hour time limit, while parts three and four have no time limit and are taken at home. The NACPB exam contains these four parts: Accounting Fundamentals, Accounting Principles, Payroll Fundamentals, and QuickBooks Fundamentals. Each section of the NACPB exam has a two-hour time limit.
Expert Contributor: Stephen Mostrom Stephen has an MBA and JD and has significant financial experience at Fortune 500 banks, including JP Morgan Chase and Bank of America.