You realize it’s the right moment to recruit a certified accountant. Maybe your business is actively growing, and it is starting to be a challenge to monitor finances. Or maybe you are considering selling your firm and need clean books. Or perhaps you’re tired of managing your own accounting software? Fortunately, more than a million finance professionals in the United States are ready to help to refine your business, but a certified bookkeeper will benefit you the most. Let’s find out what kinds of certifications exist, how accountants can obtain their qualifications in bookkeeping, and why working with them can be helpful for you as an entrepreneur.
The definition of a bookkeeping certification
Bookkeeping certification is a professional accreditation a bookkeeper can obtain to confirm their expertise. This process often involves an intensive studying program and demands passing exams plus taking ongoing classes to maintain and upgrade the necessary skills.
Some certificates can be received by people with specialized accounting experience so that you, as a potential employer or client, may see the steps the job applicant has taken to refine their qualifications.
There are qualifier courses for people who are just entering the accounting field. They cover the basic knowledge that enable the specialist to perform their job successfully.
List of responsibilities of a certified bookkeeper
Accounting covers both daily routine tasks and financial reporting essential for increasing company productivity. If you are recruiting a certified public bookkeeper, you should use this list of their basic tasks and responsibilities:
- Data entry: The specialist records all incoming and outgoing financial transactions. Each entry should be recorded once occurred to enable the business owner to reconcile, and use the information quickly.
- Account reconciliation: This means to compare the financial transactions recorded with a bank statement to ensure the information matches.
- Tracking bills and invoices: Accounts receivable control includes issuing invoices to counterparties and monitoring the payments overdue. Managing accounts payable, the certified public bookkeeper monitors the timely payment of all the bills to avoid fines.
- Payroll: This task involves processing and calculating the salary amounts workers have earned, making the deductions required, and ensuring the correct payouts are distributed to employees by the scheduled date.
- Reporting: Certified public bookkeepers typically produce monthly reports, while certified public accountants can produce and verify year-end documents. Monthly reports, included expense reports, profit and loss statements, and cash flow statements, help monitor the enterprise’s financial transactions.
This is not a complete list. Your company may have special needs that the bookkeeper has to consider. In an ideal scenario, you collaborate with a specialist who can tailor their services to the goals of your enterprise. They should be able to communicate financial information effectively to stakeholders, including management, colleagues, and external parties. Don’t forget about adhering to ethical standards, maintaining confidentiality and integrity in handling financial information.
Why does certification matter?
Although the USA Bureau of Statistics predicts bookkeeper jobs will decrease by 5% through 2031, organizations still expect about 197,000 job openings annually in the country, so demand for bookkeeping certification continues to grow.
Nowadays, an official accounting accreditation is not for every role, whereas CPA status may be required for accountants based on their tasks and responsibilities. However, it is essential to understand whether your company needs such experts.
Considering the financial role of an accountant in your firm, the certificate confirms that the accountant has received fundamental knowledge about bookkeeping procedures, practices, and methods. During the training, the applicant also develops skills in invoicing, payroll, accounts payable and receivable, etc.
The most recognized certifications in the industry
For those who plan to implement modern bookkeeping, we recommend to start dealing with certified bookkeepers.
Several main institutions provide bookkeeping accreditation. The American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB) have a kind of the same offer regarding institutional participation, opportunities. Although there are other licenses, the most powerful are those issued by the AIPB and NACPB.
The main distinction between these two kinds of certification is the name of the title the bookkeeper gets. Professionals with the AIPB credential are certified bookkeepers (CB), while NACPB credential holders are certified public bookkeepers (CPB).
How may bookkeepers get certified?
The initial phase in achieving a CB or CPB status is making a decision. Those who want to become certified bookkeepers should understand that obtaining such a certificate demands time, energy, and perseverance, but the benefits they will provide their employer are worth the efforts. Once an individual has decided to attain the certificate, several steps need to be taken, which we will discuss below.
Compliance check
Before gaining the title of a certified bookkeeper, an applicant must match proficiency and educational standards. Regardless of what certification you apply, the employer must verify the employee’s work experience.
Applicants who plan to apply for AIPB certification do not require formal education. Such a certificate requires just 24 months or at least 3,000 hours of practice. Those applying for qualification should also sign the Code of Ethics and take an exam.
To go through the AIPB’s certification procedure, candidates do not need a formal education. On the other hand, NACPB recommends but does not require a bachelor’s degree in accounting, economics or a related domain to attain the status. Applicants must work in bookkeeping for 12 months or more than 2000 hours, confirm an agreement to follow the rules, and pass the test.
Selection and registration
Applicants can choose from a range of accounting certification programs. Accountants may prefer an institution, such as AIPB or NACPB, which suggests a standardized educational plan and a CB or CPB designation upon program completion. Additionally, they may choose the colleges and career certification centers that issue their certificates.
NACPB does not demand official registration to pass the exam. Applicants may purchase access to different test modules on the organization’s website.
AIPB course includes a series of self-paced classes with the supporting materials which can be purchased both one by one and all together.
Some words about exams
If the applicant meets both education and practical experience criteria and has finished the preparatory courses, the time comes to take the test. Let’s explore the features of different knowledge tests.
The CB exam consists of several modules:
- Adjusting entries and Correction of mistakes (2 tests)
- Payroll and Depreciation (2 tests)
- Inventory (1 test)
- Internal controls and fraud prevention (1 test)
It is permitted to utilize the study materials to pass Parts 3 and 4. However, Sections 1 and 2 must be completed without any assistance. The candidate needs to bring identification documents and other necessary materials on the test day.
The exam takes place online. The CB candidate will receive guidance on preparing for the exam in the email they provided when filling out the forms. They may take the exam at any location with Internet access. Applicants for a license must demonstrate professional knowledge of bookkeeping.
Knowledge update
The certification’s validity period depends on which authorized institution the accountant has selected. Being a member of the authorized organization ensures that a certified bookkeeper stays informed about any updates in maintenance rules. CPB certificates require 24 hours of continuing study per year of licensing. To uphold the CB status, individuals have to fulfill 60 continuing education credits every 3 years. They must retain all certification documents to share with customers and employers.
Proficiency of specialists in the latest software and awareness of technological trends, such as financial technology advancements, ensures efficient financial management. Regular participation in continuing education courses, workshops, and seminars keeps individuals abreast of industry developments.
Benefits of dealing with certificated bookkeepers
Recruiting a certified bookkeeper provides many benefits that may significantly influence your business’s success. In this section, we will discuss how an accountant can save you time and improve the quality of financial analysis, solutions, and other aspects of financial performance:
- Saving time: Your time as an entrepreneur is a valuable resource. If the professional is solving your accounting problems, you may focus on other types of activity, including business development, expanding your client base, etc.
- Implemented ongoing financial analysis: A skilled CB provides accurate and up-to-date accounting data so you can make rational decisions. They help define trends, monitor primary performance parameters, and offer helpful insights to improve financial management.
- Cash flow control: Clear cash management is crucial for any enterprise. The CB assists you in monitoring outstanding invoices, handling accounts payable and receivable, and guaranteeing a transparent picture of the enterprise’s financial position.
Interacting with a certified bookkeeper significantly decreases the risk of mistakes and fraud in reports, cutting the likelihood of inaccuracies when filling out tax documents. Additionally, the accredited accountant helps develop and implement tax planning strategies that allow you to utilize all tax deductions and benefits effectively.
Final words
The future of bookkeeping looks promising with the rapid development of technology. Artificial intelligence, data processing, and automation are changing standard bookkeeping procedures, increasing precision and efficiency. While these innovations make many jobs more accessible, the complexity of processing financial data requires the knowledge and skills of CB. They have a deep understanding of financial transactions and the intricacies of the financial sector, offering tailored solutions that automated systems have missed.
We at BooksTime offer professional accounting services with a proven track record. Our experts have created an optimum approach to maximize efficiency and accuracy in all financial processes. By ensuring information security and accurate reporting, we enable companies to make informed decisions!
