What Skills Bookkeepers Transfer Into Career As a CPA

The terms “bookkeeper” and “accountant” are often used interchangeably by the general public, and for good reason. While bookkeeping and accounting represent distinct professional services, they are deeply intertwined, particularly in smaller organizations. Well-kept financial records are essential for accountants—whether they work in corporate, individual, nonprofit, or government settings—and bookkeepers play a critical role in maintaining these records. Furthermore, many accountants engage in bookkeeping, while some bookkeepers handle basic accounting tasks.

Differences Between Bookkeeping and Accounting

The primary distinction between bookkeeping and accounting lies in their functions:

• Bookkeepers document financial transactions and data, including costs, revenues, checks written or received, and invoices.
• Accountants process and analyze financial transactions, often providing recommendations for process and profit improvements to management.

In smaller organizations that do not hire accountants, seasoned bookkeepers may perform basic accounting tasks themselves.

Understanding CPAs

Certified Public Accountants (CPAs) are licensed through state Boards of Accountancy and typically manage all financial documentation required for public disclosure. CPAs provide some of the most complex professional services within the accounting field, making them highly attractive to employers. According to the U.S. Bureau of Labor Statistics (BLS), CPAs can expect strong employment prospects and competitive salaries as the economy recovers, particularly in the business and finance sectors.

Salary Comparison

The average salary for CPAs is significantly higher than that of bookkeepers. The 2015 Robert Half International Salary Guide indicates:

• Bookkeepers earn between $38,500 and $57,250, regardless of employer size or tenure.
• For public accountants, the lowest suggested salary (for those with up to one year of experience in audit/assurance at a small firm) is $43,250 to $53,750.
• At the high end, CPAs in senior management or director positions providing tax services at large firms can earn between $112,000 and $183,000.

Transitioning from Bookkeeper to CPA

For bookkeepers seeking to enhance their employment opportunities, earnings, and job security by becoming CPAs, it’s important to explore local employment and salary data, as national statistics may not reflect local conditions. They should also investigate the educational and professional requirements for licensure in their respective states.

Educational Requirements

The first step for bookkeepers pursuing a stable and rewarding CPA career is education. Most states—46 states and the District of Columbia—require 150 credit hours of college education to sit for the national, four-part Uniform CPA Exam. Since a standard bachelor’s degree requires 120 credit hours, the additional credits typically equate to a Master’s degree in accounting, although an advanced degree is not always mandatory.

Many states also require professional experience before certification, and nearly all mandate continuing professional education (CPE) credits for license renewal.

The CPA Exam

The Uniform CPA Exam, created and scored by the American Institute of Certified Public Accountants (AICPA), is known for its difficulty. Achieving qualification for a seat at the exam is an accomplishment in itself, with a recommended study time of at least 500 hours prior to taking the test. Various resources, including online CPA Review Courses, can assist candidates in preparing for the exam. It’s advisable for CPA candidates to carefully consider their program and financial options before enrolling.

Conclusion

In conclusion, bookkeepers can leverage their existing skills and knowledge as they transition into CPA roles. By understanding the educational requirements and preparing for the challenges of the CPA Exam, they can position themselves for a rewarding career that offers substantial financial benefits and professional growth.