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Small to mid-size businesses might employ their own bookkeepers. But in recent years, many have started offering bookkeeping services on a self-employed basis. This is good for businesses, as it means they can get all the benefits of a bookkeeper without having to employ a full-time member of staff.
The average full-time bookkeeper earns nearly $40,000 per year (almost $19 an hour), according to the U.S. Bureau of Labor Statistics reports. But Robinson pointed out that as a freelancer or contractor, you can actually earn a higher hourly rate while working fewer hours.
A bookkeeper records and classifies a company's daily financial transactions (e.g., sales, payroll, payment of bills, etc.). Their focus is on accurate record keeping, and less focused on interpreting the data and analytics. An accountant builds on the information provided to them by the bookkeeper.
Accountants are a level up from bookkeepers. They can (but usually don't) perform bookkeeping functions, but usually, they prepare detailed financial statements, perform audits of the books of public companies, and they may prepare reports for tax purposes.
In Australia, you don't technically have to be certified in any way to work as a bookkeeper. That's the reason why small business owners can do their own books and BAS. Administrators with experience in bookkeeping can offer their services without having to get a qualification to formalise their experience.
A bookkeeper records and classifies a company's daily financial transactions (e.g., sales, payroll, payment of bills, etc.). Their focus is on accurate record keeping, and less focused on interpreting the data and analytics. An accountant builds on the information provided to them by the bookkeeper.
How to Become an Independent BookkeeperGet Your Degree. No one's going to trust you with their money if you haven't studied accounting and bookkeeping.Gain Practical Experience.Add Some Credentials.Handle Your Legal Issues.Start Marketing Yourself.
To be a bookkeeper you need to have a money laundering license, also known as AML - Anti Money Laundering. If you don't have this you would be breaking the law if you start a bookkeeping business from home. License holders are offered a range of resources and guidance to help complying with your AML duties.
You should always ask! A qualified bookkeeper will be able to prepare accounts and tax returns for sole traders, as well as basic self assessment returns. Most will also be able to prepare your VAT returns and deal with PAYE.
Bookkeeping is a direct record of all purchases and sales your business conducts, while accounting is a subjective look at what that data means for your business. An accountant can be considered a bookkeeper, but a bookkeeper can't be an accountant without proper certification.