How Much Money Can Bookkeeping Businesses Really Make?

Bookkeeping, accounting, and auditing clerks usually get on-the-job training. Under the guidance of a supervisor or another experienced employee, new clerks learn how to do their tasks, such as double-entry bookkeeping. In double-entry bookkeeping, each bookkeeping transaction is entered twice, once as a debit and once as a credit , to ensure that all accounts are balanced. The median annual salary for bookkeeping, accounting, and auditing clerks was $28,570 in 2004, according to the Bureau of Labor Statistics.

• Retirements will be the main source of job vacancies in this profession.
• Software innovations, such as cloud computing, have automated many of the tasks performed by bookkeepers.
• As a freelancer, you will need to bid and win all projects on your own.
• Their job is to advocate and assist taxpayers when they have issues with the Internal Revenue Service.

The 2020 full-time average hourly wage rate for finance, insurance and related business administrative occupations, which includes bookkeepers, is $29.57. The 2020 corresponding median weekly wage rate is $1,021, giving an approximate full-time annual salary for this employment group of $53,000.

Average Bookkeepers’ Salary in Canada

Enhance your own finances while helping small businesses manage theirs. It consists of a 2 week self-led, online training with on-going check-ins with managers.

It may also discuss the major industries that employed the occupation. This tab may also describe opportunities for part-time work, the amount and type of travel required, any safety equipment that is used, and the risk of injury that workers may face. Bookkeeping, accounting, and auditing clerks are responsible for producing accurate financial records. They must pay attention to detail in order to avoid making errors and recognize errors that others have made. With appropriate experience and additional education, some bookkeeping, accounting, and auditing clerks may become accountants or auditors.

What Experience and Expertise are You Looking For?

It is indispensable to have a knowledge of accounting and to understand how to use accounting software systems. Bookkeepers.com is offering 3 courses for free on how to own a virtual bookkeeping business. Learn how to work from home, earn good money and be your own boss with the #1 most profitable little business. This helps business owners in the long run keep more of their income.

• Entry-level accounting clerks may post details of transactions , add up accounts, and determine interest charges.
• Greg DePersio has 13+ years of professional experience in sales and SEO and 3+ years as a freelance writer and editor.
• A bookkeeper is responsible for recording transactions into the system, which is part of the wider and more general practice of accounting.
• In double-entry bookkeeping, each transaction is entered twice, once as a debit and once as a credit , to ensure that all accounts are balanced.
• In fact, our data shows that the manufacturing, finance, and professional industries tend to offer much higher salaries for bookkeepers.
• If you are already a CPA, you can act as an enrolled agent without passing the exam.
• Other jobs may be listed with state and private employment agencies, on Internet job sites, and in newspaper classified ads.

You’ll be looking at roughly $300 a year, which, broken down, is $25 a month. A typical full-time annual salary for this occupation is in the region of $40,000 – $50,000. According to the latest figures, the highest hourly average wages are earned in Calgary, Alberta at $26.43 per hour and the lowest average wages are in Prince Edward Island at $18.00 per hour. Pay is determined by regional location, interview, and years of experience.

Licenses, Certifications, and Registrations

She has a couple of clients who are charged $500 a month, a couple at $400, and a few at $250. When I created the fixed rates for these clients, I wanted it to add up to roughly $50 an hour. One thing to note as you’re figuring out what to charge is what tasks you are doing for each client and how much time each of those tasks typically take.

Most bookkeeping, accounting, and auditing clerks are required to have some postsecondary education. Because almost every business has at least one bookkeeper, prospective workers might try applying to any firm that interests them. Even if there are no job openings at the time of applying, candidates may be considered for future openings. Bookkeepers with two years of bookkeeping experience can obtain a Certified Bookkeeper designation, which is awarded by the American Institute of Professional Bookkeepers. The certification ensures employers that bookkeepers can carry out all standard bookkeeping duties. In order to obtain the certification, a bookkeeper must pass three exams and adhere to a code of ethics. There are major differences between the three types of bookkeepers and what each can offer your business.

Bottom Line About Bookkeepers

I budgeted $25 a month on advertising for this bookkeeper, as those costs truly are relatively low and only optional expenses. This offering is attractive to clients so they don’t have to worry about keeping a subscription. Plus, as a bookkeeper, I get QuickBooks much cheaper for them than they would have otherwise. My ProAdvisor QuickBooks Online Plus subscription discount is $35 a month per client. So this bookkeeper who has eight clients would be spending $280 a month to hold their subscriptions. A bookkeeper’s expenses each month are relatively low, which is why this career is so appealing to many who are looking for a part-time side hustle.

You can charge your client for their subscription, but I personally like to add it into their bookkeeping plan with me. For this bookkeeper, I have her working half time, or about 20 hours a week. You definitely can be a full-time bookkeeper, but what I’ve found is that the bookkeepers I’ve interacted with most use it as a side hustle or a part-time job in conjunction with other revenue streams. ScaleFactor is on a mission to remove the barriers to financial clarity that every business owner faces. This expertise and the ability to handle more complex and, at times, more sensitive financial information might make hiring the right bookkeeper more expensive. How much you make as a first-year accountant depends mainly on the specific career path you pursue.

What is a Bookkeeper’s Salary?

If you’re growing, outsourced bookkeeping services should be able to help you scale by adding full service accounting when you are ready for it. The current average full-charge bookkeeper’s salary fluctuates between $35,000 to $55,000 per year while the average price of outsourcing your bookkeeping needs ranges from $500 to $2,500 a month. The biggest site for finding remote, work-from-home jobs, both full-time and part-time for your skillset. The trained researchers at FlexJobs hand-screen job listings to eliminate ads and scams found on other sites. Find everything from entry-level to executive positions at FlexJobs.

• A Bookkeeper is considered to be a low bonus-based job due to the generally limited involvement in direct revenue generation, with exceptions of course.
• The highest-paid bookkeepers were the 460 working for the US Postal Service, who earned $59,150 in average annual income.
• Whether it’s working remotely full time or freelancing, more people are seeking ways to work from home.
• Investopedia requires writers to use primary sources to support their work.
• Many companies hire remote bookkeepers to manage various accounting or clerical tasks.
• Senior bookkeepers make around $46,839 to $74,540 on average in the US, depending on experience, location, skills, and other factors.