Bookkeeper Salary in US: How Much Do They Make in 2023

If you are interested in a career that involves managing financial records, preparing reports, and ensuring accuracy, you might want to consider becoming a bookkeeper. Bookkeepers are essential for any business, as they help keep track of the money that comes in and goes out. But how much do bookkeepers make in the US? What are the benefits of being a bookkeeper? And how can you become one? In this article, we will answer these questions and more, based on the latest data and information available.

Average bookkeeper salary in the US

According to the Bureau of Labor Statistics (BLS), the median annual wage for bookkeeping, accounting, and auditing clerks was $42,410 in May 2020. This means that half of the workers in this occupation earned more than this amount, and half earned less. The lowest 10% earned less than $26,810, and the highest 10% earned more than $64,260.

However, the bookkeeper salary can vary depending on several factors, such as:

• Location: The bookkeeper salary can differ significantly by state and city. For example, according to Authority, the highest average bookkeeper salary in September 2023 was in New York City ($54,858), followed by San Francisco ($53,601) and Boston ($50,878). The lowest average bookkeeper salary was in Orlando ($38,467), followed by Phoenix ($39,107) and Houston ($39,240).
• Experience: The bookkeeper salary can also increase with experience and skills. The average bookkeeper salary for entry-level workers (less than one year of experience) was $16.76 per hour in September 2023. The average bookkeeper salary for mid-career workers (5-9 years of experience) was $19.97 per hour. And the average bookkeeper salary for experienced workers (10-19 years of experience) was $21.47 per hour.
• Education: The bookkeeper salary can also depend on the level of education and certification. The average bookkeeper salary for workers with a high school diploma or equivalent was $18.75 per hour in September 2023. The average bookkeeper salary for workers with an associate degree was $19.67 per hour. And the average bookkeeper salary for workers with a bachelor’s degree was $20.69 per hour. Additionally, workers who have a professional certification, such as Certified Bookkeeper (CB) or Certified Public Bookkeeper (CPB), can earn more than those who do not.
• Industry: The bookkeeper salary can also vary by industry and sector. The top-paying industries for bookkeeping, accounting, and auditing clerks in May 2020 were:
  • Postal service: $62,150
  • Motion picture and video industries: $58,210
  • Securities, commodity contracts, and other financial investments and related activities: $56,620
  • Federal executive branch: $55,070
  • Aerospace product and parts manufacturing: $54,790

How much do bookkeepers make a week and month?

Based on the median annual wage of $42,410 reported by BLS we can estimate that the average bookkeeper makes about $815 per week and about $3,534 per month. However, these numbers are only averages and may not reflect the actual earnings of individual bookkeepers.

How to become a bookkeeper?

To become a bookkeeper, you typically need at least a high school diploma or equivalent. However, some employers may prefer or require candidates who have some college education or an associate degree in accounting or business administration. Additionally, having some relevant work experience or completing an internship can help you gain practical skills and knowledge.

To become a successful bookkeeper, you also need to have certain skills and abilities, such as:

• Attention to detail: Bookkeepers need to be accurate and meticulous when recording financial transactions and preparing reports.
• Math skills: Bookkeepers need to be able to perform basic arithmetic operations and calculations.
• Computer skills: Bookkeepers need to be proficient in using various accounting software programs and applications, such as QuickBooks Xero, Zoho Books, FreshBooks, etc.
• Communication skills: Bookkeepers need to be able to communicate effectively with clients, managers, accountants, auditors, and other stakeholders.
• Organizational skills: Bookkeepers need to be able to manage multiple tasks and deadlines and keep financial records well-organized.
• Problem-solving skills: Bookkeepers need to be able to identify and resolve any errors or discrepancies in financial data.

To advance your career as a bookkeeper, you may also consider obtaining a professional certification, such as:

• Certified Bookkeeper (CB): This certification is offered by the American Institute of Professional Bookkeepers (AIPB) and requires passing four exams and having at least two years of full-time bookkeeping experience.
• Certified Public Bookkeeper (CPB): This certification is offered by the National Association of Certified Public Bookkeepers (NACPB) and requires passing four exams and having at least one year of bookkeeping experience or completing an education program.
• QuickBooks Certified User (QBCU): This certification is offered by Intuit and requires passing an exam that tests your knowledge and skills in using QuickBooks software.

What are the benefits of being a bookkeeper?

Being a bookkeeper can have several benefits, such as:

• Job stability: Bookkeeping is a stable and in-demand occupation, as every business needs to keep track of its finances. The employment of bookkeeping, accounting, and auditing clerks is projected to decline by 4% from 2020 to 2030, but this is mainly due to automation and outsourcing. However, there will still be a need for skilled bookkeepers who can perform complex tasks and use advanced software systems.
• Job flexibility: Bookkeeping is a flexible occupation, as you can work full-time or part-time, on-site or remotely, for one employer or multiple clients. You can also choose to specialize in a specific industry or sector that interests you.
• Career growth: Bookkeeping can be a stepping stone to other accounting or finance careers, as you can gain valuable experience and knowledge that can help you pursue higher-level positions or further education. You can also increase your earning potential and marketability by obtaining professional certifications or degrees.
• Personal satisfaction: Bookkeeping can be a rewarding occupation, as you can help businesses manage their finances and achieve their goals. You can also enjoy the challenge and variety of working with different types of transactions and reports.

Best bookkeeping companies to work for

There are many bookkeeping companies that offer online or virtual services to clients across various industries and sectors. Some of the best bookkeeping companies to work for are:

• Bench: Bench is an online bookkeeping service that provides dedicated bookkeepers, intuitive software, and monthly financial reports to small businesses. Bench offers competitive salaries, benefits, perks, and opportunities for career development to its employees.
• Bookkeeper.com: Bookkeeper.com is a virtual bookkeeping service that works with QuickBooks users to provide essential bookkeeping services as well as assistance with payroll, taxes, financial planning, etc. Bookkeeper.com offers flexible schedules, training programs, and performance bonuses to its employees.
• Bookkeeper360: Bookkeeper360 is a full-service online bookkeeping service that works with Xero users to provide monthly or weekly bookkeeping services. Bookkeeper360 also offers add-ons for taxes, HR and payroll, inventory management, etc. Bookkeeper360 offers competitive compensation, benefits, incentives, and career advancement opportunities to its employees.
• Pilot: Pilot is an online bookkeeping service that specializes in serving startups and small businesses. Pilot uses a combination of software and expert bookkeepers to provide accurate and reliable financial reports. Pilot offers attractive salaries, benefits, equity, and perks to its employees.

Conclusion

Bookkeeping is a vital function for any business that needs to keep track of its financial activities and performance. Bookkeepers are responsible for recording and maintaining financial transactions, preparing reports, ensuring compliance, and supporting other accounting processes. The average bookkeeper salary in the US was $42,410 in May 2020, but it can vary depending on location, experience, education, industry, and certification. To become a bookkeeper, you typically need at least a high school diploma or equivalent, some relevant work experience or education, and certain skills and abilities. You can also advance your career by obtaining professional certifications or degrees. Being a bookkeeper can have several benefits, such as job stability, flexibility, growth, and satisfaction. You can also find many opportunities to work for online or virtual bookkeeping companies that offer quality services to clients.

Most Asked Questions About Bookkeeping

Here are some of the most asked questions about bookkeeping and their answers:

1. What is the difference between bookkeeping and accounting?

Bookkeeping and accounting are both related to the financial management of a business, but they have different roles and responsibilities. Bookkeeping is the process of recording and organizing financial transactions in a systematic way. Accounting is the process of analyzing, interpreting, summarizing, and reporting financial information for decision-making purposes.

2. What are the types of bookkeeping?

There are two main types of bookkeeping: single-entry and double-entry. Single-entry bookkeeping is a simple method that involves recording one entry for each transaction in a single ledger. Double-entry bookkeeping is a more complex.

method that involves recording two entries for each transaction in a ledger: a debit and a credit. Double-entry bookkeeping ensures that the accounting equation (assets = liabilities + equity) is always balanced.

3. What are the basic bookkeeping terms and concepts?

Some of the basic bookkeeping terms and concepts are:

• Transaction: A transaction is any event that affects the financial position of a business, such as a sale, a purchase, a payment, a receipt, etc.
• Ledger: A ledger is a book or a file that contains all the accounts and transactions of a business.
• Account: An account is a record of the changes in the value of a specific asset, liability, equity, revenue, or expense.
• Debit and credit: A debit is an entry that increases the value of an asset or an expense account, or decreases the value of a liability or an equity account. A credit is an entry that decreases the value of an asset or an expense account, or increases the value of a liability or an equity account.
• Journal: A journal is a chronological record of all the transactions that occur in a business, before they are posted to the ledger.
• Trial balance: A trial balance is a list of all the accounts and their balances at a given point in time. It is used to check if the debits and credits are equal and if there are any errors in the bookkeeping process.
• Financial statements: Financial statements are reports that summarize the financial performance and position of a business, such as the income statement, the balance sheet, and the cash flow statement.

4. What are the bookkeeping best practices?

Some of the bookkeeping best practices are:

• Keep accurate and complete records of all transactions and supporting documents, such as invoices, receipts, bills, etc.
• Use accounting software or applications that can automate and simplify the bookkeeping process and reduce errors.
• Reconcile your bank accounts and credit cards regularly to ensure that your records match your statements.
• Review your financial statements and reports periodically to monitor your business performance and identify any issues or opportunities.
• Maintain a separate business account and avoid mixing personal and business transactions.
• Follow the applicable accounting standards and tax laws for your industry and location.
• Seek professional advice or assistance from an accountant or a bookkeeper when needed.

5. What are the bookkeeping challenges?

Some of the bookkeeping challenges are:

• Time-consuming: Bookkeeping can be a tedious and time-consuming task, especially for small businesses that have limited resources and staff.
• Error-prone: Bookkeeping can be prone to human errors, such as data entry mistakes, calculation errors, duplication errors, etc. These errors can have serious consequences for the accuracy and reliability of financial information.
• Complex: Bookkeeping can be complex, as it involves dealing with various types of transactions, accounts, rules, regulations, etc. It can also require constant updating and adjusting to reflect changes in the business environment.
• Costly: Bookkeeping can be costly, as it may require investing in software, hardware, training, security, etc. It may also require hiring or outsourcing professional bookkeepers or accountants.

6. How to do bookkeeping for small businesses?

To do bookkeeping for small businesses, you can follow these steps:

• Choose an accounting method: You can choose between cash basis accounting or accrual basis accounting. Cash basis accounting records transactions when cash is received or paid. Accrual basis accounting records transactions when they are incurred or earned.
• Choose an accounting software or application: You can choose from various options available in the market, such as QuickBooks, Xero, Zoho Books, FreshBooks, etc. These tools can help you automate and streamline your bookkeeping process and generate financial reports.
• Set up your chart of accounts: You can set up your chart of accounts by creating categories for your assets, liabilities, equity, revenue, and expenses. You can also customize your accounts according to your industry and needs.
• Record your transactions: You can record your transactions by entering them in your journal and posting them to your ledger. You can also use bank feeds or import features to connect your bank accounts and credit cards to your accounting software or application.
• Reconcile your accounts: You can reconcile your accounts by comparing your records with your bank statements and credit card statements. You can also use reconciliation features in your accounting software or application to automate this process.
• Generate financial statements and reports: You can generate financial statements and reports by using templates or features in your accounting software or application. You can also export or share them with your stakeholders.

7. How to do bookkeeping for freelancers?

To do bookkeeping for freelancers, you can follow these steps:

• Choose an accounting method: You can choose between cash basis accounting or accrual basis accounting. Cash basis accounting records transactions when cash is received or paid. Accrual basis accounting records transactions when they are incurred or earned.
• Choose an accounting software or application: You can choose from various options available in the market, such as QuickBooks, Xero, Zoho Books, FreshBooks, etc. These tools can help you automate and streamline your bookkeeping process and generate financial reports.
• Set up your chart of accounts: You can set up your chart of accounts by creating categories for your assets, liabilities, equity, revenue, and expenses. You can also customize your accounts according to your industry and needs.
• Record your transactions: You can record your transactions by entering them in your journal and posting them to your ledger. You can also use bank feeds or import features to connect your bank accounts and credit cards to your accounting software or application.
• Track your income and expenses: You can track your income and expenses by categorizing them according to your chart of accounts. You can also use invoicing and expense tracking features in your accounting software or application to automate this process.
• Prepare for taxes: You can prepare for taxes by setting aside a percentage of your income for tax payments. You can also use tax preparation features in your accounting software or application to estimate your tax liability and file your tax returns.

8. How to do bookkeeping for nonprofits?

To do bookkeeping for nonprofits, you can follow these steps:

• Choose an accounting method: You can choose between cash basis accounting or accrual basis accounting. Cash basis accounting records transactions when cash is received or paid. Accrual basis accounting records transactions when they are incurred or earned.
• Choose an accounting software or application: You can choose from various options available in the market, such as QuickBooks, Xero, Zoho Books, FreshBooks, etc. These tools can help you automate and streamline your bookkeeping process and generate financial reports.
• Set up your chart of accounts: You can set up your chart of accounts by creating categories for your assets, liabilities, net assets, revenue, and expenses. You can also customize your accounts according to your industry and needs.
• Record your transactions: You can record your transactions by entering them in your journal and posting them to your ledger. You can also use bank feeds or import features to connect your bank accounts and credit cards to your accounting software or application.
• Track your donations and grants: You can track your donations and grants by categorizing them according to their sources, purposes, restrictions, etc. You can also use donation and grant management features in your accounting software or application to automate this process.
• Generate financial statements and reports: You can generate financial statements and reports by using templates or features in your accounting software or application. You can also export or share them with your donors, board members, auditors, etc.

9. How to do bookkeeping for e-commerce?

To do bookkeeping for e-commerce, you can follow these steps:

• Choose an accounting method: You can choose between cash basis accounting or accrual basis accounting. Cash basis accounting records transactions when cash is received or paid. Accrual basis accounting records transactions when they are incurred or earned.
• Choose an accounting software or application: You can choose from various options available in the market, such as QuickBooks, Xero, Zoho Books, FreshBooks, etc. These tools can help you automate and streamline your bookkeeping process and generate financial reports.
• Set up your chart of accounts: You can set up your chart of accounts by creating categories for your assets, liabilities, equity, revenue, and expenses. You can also customize your accounts according to your industry and needs.
• Record your transactions: You can record your transactions by entering them in