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:
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Recording day-to-day financial transactions like sales, purchases, receipts, and payments
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Maintaining accurate records of accounts payable and accounts receivable
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Performing bank reconciliations and preparing financial statements
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Tracking fixed assets, inventory, and other balances
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Ensuring financial records comply with accounting standards and regulations
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:
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Years of experience
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Accounting certifications like CPB or QuickBooks certification
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Industry (e.g. corporate, government, nonprofit)
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Company size and location
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 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
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Bookkeepers with bachelor's degrees generally earn 20-30% higher salaries than those with only high school diplomas. Common degree fields include accounting, finance, business, and economics.
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Obtaining certifications like CB or QB validates specialized skills and can increase salaries by 10-15%. Many employers require these.
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Continuing education such as seminars, conferences, and training courses allows developing expertise with new accounting regulations and software. This makes bookkeepers more marketable.
Years of Experience
In general, bookkeeper salaries correlate with years of experience:
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0-2 years: $35,000 - $45,000
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3-5 years: $45,000 - $60,000
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6-10 years: $55,000 - $75,000
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10+ years: $70,000+
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:
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New York City: $55,000+
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Los Angeles: $50,000+
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Chicago: $45,000+
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Austin, TX: $40,000+
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:
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Small business: $35,000 - $50,000
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Mid-size company: $45,000 - $65,000
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Large corporation: $60,000+
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:
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Small business formation continues to accelerate, with over 5 million applications for new businesses filed in 2021 alone according to the U.S. Census Bureau. Most small business owners need assistance with financial record-keeping and reporting.
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Changes to tax codes, accounting regulations, and compliance requirements create greater demand for bookkeeping services to adapt processes and maintain updated documentation.
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Many companies are outsourcing bookkeeping tasks to specialized firms or virtual assistants to reduce costs. This trend opens up additional job opportunities.
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Bookkeepers with knowledge of new technologies and software programs tend to have the best job prospects as companies aim to improve efficiency.
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.
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 profession include:
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Increased use of AI and automated workflows to handle routine tasks like data entry, invoice processing, expense reporting, and bank reconciliations. This allows bookkeepers to focus on more strategic, analytical initiatives.
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Migration to the cloud as web and mobile apps provide real-time visibility into finances across locations and devices. Integrations with bank feeds, billing platforms, etc. reduce manual data imports.
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Rise of advisory services as bookkeepers leverage software insights to provide customized recommendations on cash flow, profitability improvements, tax optimization, and more. Advanced training in these areas is becoming increasingly valuable.
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:
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Certified Bookkeeper (CBP) - This credential from the American Institute of Professional Bookkeepers demonstrates your skills in areas like payroll, depreciation, inventory, and more. Many employers offer pay increases for CBP certified bookkeepers.
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Certified Valuation Analyst (CVA) - This certification from the National Association of Certified Valuators and Analysts shows you have valuation skills to assess company assets, goodwill, and equity. These skills are in high demand for bookkeepers looking to expand their services.
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Certified Fraud Examiner (CFE) - With this credential from the Association of Certified Fraud Examiners, you can provide fraud examination services alongside your bookkeeping duties. These skills can command higher fees from clients concerned about fraud.
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:
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Budget preparation and analysis - Prepare budgets and variance analyses for clients. Identify areas for potential cost savings.
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Financial modeling and forecasting - Build models projecting future company performance. Stress test different scenarios.
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KPI and metric analysis - Track key performance indicators for financial health assessments. Provide insights into improvements.
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Systems integration - Assist with implementing and customizing accounting systems like QuickBooks Online and Xero.
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:
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Head bookkeeper - Oversee a team of bookkeepers at an accounting firm or large company finance department.
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Accounting manager - Manage the day-to-day accounting operations and personnel of an organization.
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Controller - Take charge of all accounting functions and financial reporting for a company.
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CFO - Become the top financial decision maker in an organization, directing financial strategy.
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:
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Credentials: Bookkeepers with certifications or degrees tend to earn higher salaries. Popular credentials include a Bachelor's degree in accounting or finance, a Certified Public Bookkeeper (CPB) certification, or a Certified Public Accountant (CPA) license. These qualifications can boost salaries by $5,000 or more.
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Years of Experience: More experienced bookkeepers generally earn higher pay. Entry-level salaries start around $30,000, while bookkeepers with 5+ years of experience can make $55,000 or more. Gaining specialized expertise also increases earning potential over time.
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Location: Bookkeeper salaries differ across states and cities. Higher costs of living areas like New York and California tend to pay more, while lower CoL locations may offer less. Comparing local average wages is important.
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Industry Specialization: Developing deep expertise in a specific industry like healthcare, real estate, ecommerce, etc. is well compensated. Niche specialization is a key way to maximize earning ability.
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Career Progression: Bookkeepers can advance to senior, managerial, or director roles over time, boosting pay. Many pursue additional accounting certifications or higher education to qualify for promotions.
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.
