Bookkeeping is the science of recording financial transactions and maintaining up-to-date books of accounts. It is governed by certain regulations set by the international accounting federations and respective organization's objectives. Those who perform bookkeeping functions are called as bookkeepers or accounting clerks. The importance of bookkeeping can be judged from the fact that it provides formatted data as basis to make important financial decisions. If you plan to make a career in bookkeeping, here is some information about bookkeeping work.
Work Profile
Bookkeepers are responsible to collect information of the financial transactions of the organization performed by each department. They collect copies of receipts, bills and statements, in support of the transactions. Using accounting software, they post entries under appropriate account headings and present an overview of the financial status of that particular account book. Also, they verify the entries to ensure the accounts present true financial condition of the organizations.
Qualifications, Licensure Requisites
Bookkeepers require diploma or associate degree in bookkeeping to acquire suitable jobs. A full time degree course enhances prospects and is useful in finding jobs quickly. Besides, the American Institute of Professional Bookkeepers awards a designation of Certified Bookkeeper on successful completion of two years of work experience as full time bookkeepers and necessary examinations. These qualifications are a proof of the candidate's ability to adhere to standard bookkeeping protocols.
Job Scope
Bookkeeping is the job of bookkeepers alone. Thus it offers minimalist scope. One can improve with experience and enter accounting or finance field. However, some large organizations may have several bookkeepers who work on junior or senior levels or as chief book keeping officers. One may get an opportunity to specialize and look after the accounts of a specific department such as inventory, assets or accounts payable /receivable.
Work Environment
Bookkeeping is a prime example of a desk job and does not include traveling. It includes nominal eight working hours and public holidays. A book keeper may be required to establish correspondence with departmental heads, using different communication devices to verify the accounting entries. He is required to work on computers, using several accounting software. Work environment is not subject to any noise, safety hazards or health disorders. However, he may feel the work pressure during accounts closure period. Handling some third person's hard earned money may stress out some book keepers. Besides, one needs to be sincere and honest in his work as any mistake, intentional or unintentional, may be considered as fraudulent. It requires a sense of responsibility to survive in bookkeeping field.
Growth Potential and Career Path
Bookkeeping is the basic and the foremost function. Hence, it offers vast growth opportunities. Book keepers have a position equivalent to accounting clerks and are responsible for posting accounting entries in books of accounts. With due experience and performance, one may work as an accountant or chief accountant. On completing necessary training and acquiring the licensure, they may be eligible to work as public or management accountant. Also, one is free to choose a career in finance and work on managerial levels. Besides, bookkeepers may choose to work as regular employees or take up free lancing and provide assistance during accounting closures. Hence a humble beginning in bookkeeping may become the stepping stone to an enriching career for many.
Work Prospects
Accounting is a prominent function in any organization. It is made mandatory by law to submit financial statements for all types of organizations. Hence, one is sure to find bookkeeping jobs in the market, irrespective of recession or boom period. Bookkeeping is one of the most stable jobs. Some people refrain from bookkeeping jobs as they find it monotonous and emphasized on manual dexterity. This gives an advantage to dedicated professional bookkeepers who are good with figures and skilled at organizing work. Besides, it is a rewarding career.
Employment Industries
All kinds of industries employ bookkeepers. Whether it is a government organization, business enterprises, education, entertainment, IT, etc., bookkeeping is an important aspect of the financial establishment of the organization.
Bookkeeping offers several beneficial features to the pursuer. It offers growth, opportunities, security and decent remuneration. Hence, all aspirants must consider a career in bookkeeping to have a successful career.