Bookkeeping can be a lucrative job, especially if you’re interested in working remotely. With remote work on the rise and most small businesses looking to hire freelancers, it makes sense that many people are now considering becoming qualified bookkeepers.
But is a bookkeeping certificate worth it? In this article, we cover all the aspects of bookkeeping certifications worth.
Bookkeeping Vs. Accounting
Accounting is the process of analyzing financial statements because accountants analyze financial trends, while bookkeeping is the process of collecting financial records. In short, accounting is about numbers; bookkeeping is about people.
The difference between the two is pretty big. Accountants are typically trained to work with numbers, and they use spreadsheets and software to analyze those numbers.
They look at things like revenues, expenses, assets, liabilities, equity, profit margins, and even tax obligations.
On the other hand, bookkeepers collect money and manage cash flow. They record transactions in ledgers, produce invoices, pay bills, run payroll, and maintain general ledgers and accounts.
Basically, they generate all the information that accountants will then convert into leads.
Because bookkeepers deal with the real world, they often rely on their instincts and experience to make decisions. This makes them good problem solvers, and they tend to be very detail-oriented.
In addition to being able to read and understand numbers, bookkeepers must be skilled at multitasking. Because they are responsible for everything from managing cash flow to generating reports, they need to be organized and efficient.
Getting Qualified
There are many reasons why people choose to take up bookkeeping courses or certificates. Some want to improve their skill set, while others seek bookkeeping certification education because it helps them land better jobs.
Bookkeeping certification involves weeks of hard work to pursue certification. Professional bookkeepers attend professional development programs to improve their skills for finance and management positions.
If you’re looking to make extra money, a bookkeeping certificate might be just what you need. But do you actually need one? Let’s look at the pros and cons of taking up a bookkeeping course.
Certification programs offer several benefits for both students and employers (see also ‘How Long Does It Take To Complete OSHA 30 Online?‘). For example, most certified bookkeepers start out working part-time, but once they gain experience, they often move into full-time positions.
This makes it easier for them to advance within their companies since there are fewer barriers to entry.
As a student, being able to prove your knowledge and expertise gives you a leg up over other applicants.
Employers know that someone who has completed a bookkeeping course is likely to be more knowledgeable about the job than someone without a formal education.
In addition, a bookkeeping certificate can open doors for you. Many companies now require continuing professional education candidates to have a certain amount of training before they can be hired. A certificate proves that you have the necessary qualifications.
Although a bookkeeping certificate can benefit you professionally, it doesn’t guarantee success. Certificates don’t always translate directly into higher wages.
1. Professional Certification
Professional certification is given specifically by organizations. The CBP is a type of certification that is highly regarded as evidence of an individual’s competence.
To earn it, candidates must meet specific standards in bookkeeping skills and knowledge, work in the field, and abide by a set of ethics and codes of conduct.
Earning professional certification means you’ve met rigorous standards pertaining to accounting knowledge and associated skills. Thus, earning a certification can give you an advantage in your career and help you negotiate better pay.
That said, some of these bookkeeping certifications take ongoing training courses to maintain. So make sure you know what you’re signing up for.
2. Proficiency Certification
Proficiency and obtaining additional certifications demonstrate that you fully understand bookkeeping, including computerized accounting systems.
There are many different types of certifications, including QuickBooks ProAdvisor, Xero Certified Professional Accountant, and FreshBooks Certified Bookkeeper.
These certifications show that you know how to perform specific tasks within the software program or system.
QuickBooks ProAdvisor Certifications
The QuickBooks ProAdvisor certification demonstrates that you’re able to set up and maintain basic QuickBooks accounts, including creating invoices, tracking sales, managing customer payments, and maintaining inventory.
You must pass a written exam and a practical exam to receive the certification.
Xero Certified Professional Accountant
The Xero Certified Professional Accountants certificate demonstrates your proficiency with Xero’s cloud-based accounting solution. To earn a bookkeeping certification, you must pass both an online course and a live exam.
FreshBooks Certified Bookkeeper
To become certified as a FreshBooks Certified Bookkeeper, you must complete an online training module, followed by a live exam.
This certification shows that you understand the basics of bookkeeping and are familiar with setting up and managing accounts payable and receivable transactions.
3rd party
If you are looking for 3rd party bookkeeping programs there are a variety to choose from and most of them provide a certificate at the end of the course to prove that you completed the program.
These certificates are often sold as a certification, which can help you stand out on your resume.
However, there are several issues with third-party certifications. First, they are usually expensive. Second, they don’t come from a recognized body of professionals.
And finally, they are not always viewed as equal to a certified accountant or tax preparers. So how does one know whether bookkeeping certification worth paying hundreds of dollars for a piece of paper?
In short, they are not very useful. This is why it’s best to stick with the traditional route of taking a formal accounting course and earning an accredited degree.
College
College is academic courses — often a single year long — that are often offered by for-profit colleges.
They are designed to prepare students for certification exams, but they don’t actually certify anything. Instead, they are often priced high because they aim to replace a four-year degree.
FAQs
Are Certificates Worth It?
Are Online Course Certificates Legit?
Conclusion
Getting a booking-keeping certificate is a great way to get started in the field. However, unless you plan on becoming a CPA or going into business for yourself, it’s probably not worth spending too much money of course.
However, a reasonably priced and typical bookkeeping certification course may help you understand the world of accounting and decide if you want to pursue your bookkeeping career.
