12 Bookkeeping Skills You Must Have

If you’re looking for a cloud-based bookkeeping software that doesn’t require hours of training, try FreshBooks. It’s simple to work with, yet it doesn’t compromise on essential functions and features. It’s completely possible to become a skilled and successful freelance bookkeeper without the need for a specialized degree or lengthy certification. While more education is always a bonus, many successful freelance bookkeepers start right out of secondary school. Accountants must follow Generally Accepted Accounting Principles and stay aware of industry-specific rules, regulations and deadlines. A keen eye for irregularities and errors is an essential skill for accountants.

Typically, double-entry bookkeeping uses accrual accounting for liabilities, equities, assets, expenses and revenue. Bookkeeping can be a great side hustle if you’re good at it and enjoy the work. Bookkeeping doesn’t require certification to practice, meaning you can teach yourself and start right away if you’re confident. However, more knowledge is always an asset, and a bookkeeping certificate can make your resume look more attractive, potentially helping you to gain clients. These will help prove your expertise in specific bookkeeping and accounting software to clients.

Intuit Academy Bookkeeping

Honesty and transparency are integral components of a Bookkeeper’s character. Upholding the highest ethical standards helps instil trust in clients and stakeholders. Moreover, a transparent approach to financial transactions instils confidence and ensures the credibility of the Bookkeeper and the financial data they manage. These are some of the bookkeeping skills that will not only help you gain the trust of your clients but will also boost your reputation in the industry.

Employers may also take you on if you are working towards a full professional accounting designation so that you will eventually move into an accounting position at that organisation. A bookkeeping course can teach you the basic knowledge to prepare financial reports, organise data using tools like Microsoft Excel, or understand how to balance books. If you’re organised and enjoy working with numbers, a job as a bookkeeper could be a good fit. The requirements will vary based on the organisation you work for and your responsibilities.

Career Benefits

Make sure that you give all of your clients the same level of commitment and never treat them poorly just because they gave you a low paycheck. If you enjoy organization and numbers and have experience with bookkeeping, starting your own business offering this service might be a smart career choice. Online bookkeeping services might be the exact solution you need to save both time and money. The service you decide to use depends on the needs of your business and may include extra features such as payroll or tax documents. Now that you discovered the most important bookkeeping skills and how to assess them, let’s close this article with a few frequently asked questions. Finding the best bookkeeper isn’t easy without testing the right skills for a bookkeeper.

However, depending on a bookkeeper’s location, niche, and clients, they may command a higher salary, sometimes reaching $50,000 per year or above. By staying up to date with your bookkeeping throughout the year, you can help alleviate some of the stress that comes with filing your taxes. The average annual base salary for a bookkeeper in India is ₹2,44,898, according to PayScale as of November 2023 [1]. You can usually expect to earn much more once you have at least five years of experience. For the past 52 years, Harold Averkamp (CPA, MBA) hasworked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online.

Check for errors in reports.

Managing the general ledger is part of your daily responsibilities as a bookkeeper. You may determine if any payments are due, submit them, and record them in the financial ledger. As a bookkeeper, you may also receive client payments and deposit them at your company’s financial institution. While it’s bookkeeping skills not always necessary to have a degree, some companies will look for candidates with coursework in accounting. Becoming a certified bookkeeper enhances your credibility and increases your earning potential. In 2023, the average bookkeeper in the United States earned an annual salary of $43,748.