Bookkeeper Salary: What Can You Earn?

Finding accurate data on bookkeeper salaries can be challenging.

In this post, you'll get a detailed overview of the earnings potential in financial record-keeping roles, including key factors impacting pay such as experience, credentials, location and more.

You'll also learn about growth outlooks for the profession and tips to maximize your income as a bookkeeper over time.

Introduction

Bookkeepers are essential financial professionals who record and organize financial transactions for businesses and organizations. As key members of accounting teams, bookkeepers handle critical back-office tasks to ensure finances are accurately tracked and reported. This section will provide an overview of what bookkeepers do and how much they typically earn.

Defining the Role of a Bookkeeper

A bookkeeper's core responsibilities include:

While bookkeepers focus on recording transactions and preparing statements, accountants generally handle higher-level tasks like financial analysis, reporting, auditing, and advising on business decisions. Both roles are critical for keeping finances organized and managed.

Bookkeeper Salaries Overview

The average annual salary for a bookkeeper in the United States is approximately $42,000. However, salaries can range from $30,000 for those just starting out to $60,000+ for experienced bookkeepers with advanced credentials.

Key factors impacting compensation include:

• Education & Certifications – Higher education and certifications lead to better pay.
• Years of Experience – More experience generally results in higher salaries.
• Location – Salaries vary by state and city due to cost of living differences.
• Industry – Some industries pay bookkeepers more than others.
• Company Size – Larger companies typically offer higher salaries.

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While most bookkeepers work full-time, part-time and contract roles are also common depending on the organization's needs. Overall job demand and wages for bookkeepers are projected to grow over the next decade.

Key Factors That Impact Bookkeeper Pay

Education and credentials are critical factors that influence bookkeeper salaries. Those with bachelor's degrees in accounting, finance, or business administration tend to command higher pay compared to those without college degrees. Obtaining popular certifications like:

• Certified Bookkeeper (CB) – Offered by AIPB, proving expertise in bookkeeping.
• QuickBooks Certified User (QB) – Validates skills in QuickBooks software.
• Certified Public Bookkeeper (CPB) – Demonstrates advanced bookkeeping knowledge.

Obtaining certifications like Certified Bookkeeper (CB) or QuickBooks Certified User (QB) can also boost salaries. Continuing education helps bookkeepers stay current on the latest regulations and software, making them more valuable.

Education and Credentials

Years of Experience

In general, bookkeeper salaries correlate with years of experience:

With experience comes deeper expertise in areas like payroll, reporting, auditing, and new platforms such as QuickBooks Online and Xero. Seasoned bookkeepers tend to earn more.

Location and Cost of Living

Where bookkeepers work significantly impacts their earnings. For example:

Areas with higher costs of living and abundant jobs (like NYC) pay more. Rural locations tend to offer lower salaries.

Company Size and Industry

Larger companies have bigger accounting needs and deeper pockets, allowing them to pay bookkeepers more:

Higher-earning industries include banking, finance, tech, and pharmaceuticals. Government and schools pay less.

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Bookkeeper Job Outlook and Growth Trends

Increasing Demand for Bookkeeping Services

The bookkeeping profession is experiencing steady growth as more small businesses form and financial regulations become more complex. According to the U.S. Bureau of Labor Statistics (BLS), employment for bookkeepers is projected to grow by 10% from 2020 to 2030, faster than the average across all occupations.

Several key factors are driving demand for qualified bookkeepers:

• More Small Businesses – Startups and entrepreneurs need financial organization.
• Regulatory Compliance – Complex tax laws increase the need for bookkeeping.
• Remote Work Growth – Virtual bookkeepers are in demand.
• Freelance Economy – More self-employed professionals need financial tracking.

As small businesses hire more frequently and industries across the board seek to optimize finances, bookkeepers should continue to see strong demand for their essential services. Those able to leverage the latest tools and adapt to emerging technologies will be well-positioned for success.

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Adoption of New Technologies

Advancements in bookkeeping software, cloud-based platforms, and process automation are transforming the day-to-day responsibilities of financial record-keepers. AI and machine learning innovations enable more tasks to be completed with less human effort. While this technology disruption is changing the skills required for bookkeepers, it also presents new opportunities.

Key technology trends influencing the bookkeeping like:

Mastering new bookkeeping tools can help improve productivity and allow for more high-value services. With the right skills, bookkeepers can benefit from emerging technologies taking over repetitive tasks and better position themselves as strategic advisors. While automation may handle basic processes, human insight, judgment and an understanding of overall business contexts will remain critical. Bookkeepers who embrace change and upskill appropriately should have abundant opportunities.

Maximizing Your Bookkeeper Salary and Earnings

Getting Certified in In-Demand Areas

Pursuing certifications can help boost your salary as a bookkeeper. Some of the most lucrative certifications include:

The time and money invested in a certification often pays off in the form of 10-20% higher salaries in the first year. Relevant credentials show you have specialized, in-demand skills that make you more valuable.

Specializing in High-Value Services

Beyond core bookkeeping duties, consider offering specialized services that enable higher billing rates and earnings:

By focusing on these high-value services, you showcase expanded expertise that many clients are willing to pay more for. Specialization allows charging higher hourly rates as you deliver more strategic insights.

Seeking Advancement Opportunities

As you gain experience, look for opportunities to take on more senior bookkeeping and finance roles:

Each step up opens increased earning potential. A controller role may pay upwards of $150,000, while CFO salaries can exceed $300,000. Demonstrate leadership skills to position yourself for management and executive promotions over time.

Conclusion and Key Takeaways

The average salary for a bookkeeper in the US is around $42,230 per year. However, salaries can vary significantly based on several key factors:

In summary, a bookkeeper's salary can span $30k to $70k+ depending on credentials, experience, location, specialization, and career advancement. Prioritizing professional development is essential for income growth over time.

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