Bookkeeping is an excellent occupation in today’s world. There is excellent career progression as well as increased demand. Therefore, this article will give you a good overview of bookkeeping and how much does a bookkeeper earn in the UK. So, if you’re thinking of a career in accounting or bookkeeping, this blog would be beneficial for you.
What is Bookkeeping?
Bookkeeping is the work of recording a company’s financial transactions. Also, it is the process of systematic recording and organising financial transactions in a company. And, companies track all their information on their books for making critical operating, investing, and financing decisions with the help of bookkeeping.
Moreover, it ensures that records of individual financial transactions are accurate and up-to-date because accuracy is crucial in bookkeeping. Generally, there are set structures for bookkeeping. And, those are called ‘quality controls’; they help ensure timely and accurate records.
Traditionally, bookkeeping involved ledgers, charts of accounts, and a tedious double-entry system. In contrast, it has been changed now, due to technological advances. Moreover, computers and the internet have brought speed and efficiency in several tasks which used to take a lot of time to do manually. And bookkeeping is no exception.
Quick data storage is always an issue, and it can be a challenge for any financial organisation. However, technological advances have made a move to a computer-based system. Also, due to several accounting software such as Quickbooks, Xero, MYOB, it is much easier and more efficient to store thousands of financial data in a short time.
Who is a Bookkeeper?
A bookkeeper is a professional who manages all financial data for their organisation. And, without bookkeepers, it would be tough for companies to figure out their current financial position and the regular transactions within the organisation.
In addition, accounting and financial statements are made with the information bookkeepers provide. Thus, they work through a distinct process that occurs within the broader scope of accounting. Moreover, bookkeepers have to record every transaction, whether it is a purchase, sale or expense.
Duties and Responsibilities of a Bookkeeper
A bookkeeper has a variety of tasks to complete on a daily basis. And, depending on the type of company they work for, their task caries. However, some everyday duties and responsibilities of a bookkeeper are:
- Store the financial transactions in bookkeeping various software, databases or spreadsheets.
- Processing, preparing and sending invoices, receipts and payments.
- Process VAT returns.
- Maintaining employee records and preparing payroll.
- Prepare wages and managing claims for expenses.
- Producing financial documents like balance sheets, income statements and others.
- Check if all accounts are accurate.
- Reporting irregularities in data to management.
- Help to prepare annual accounts.
- Handle commercially sensitive and valuable information.
- Use computerised accounting systems.
Why Does Bookkeeping Matter So Much to Businesses?
Bookkeeping is crucial for businesses of all sizes. Although it seems straightforward at first glance, it quickly becomes complex with the introduction of tax, assets, loans, investments, etc.
Moreover, the primary purpose of bookkeeping is to track the financial activities of a business. That means it allows you to keep an up-to-date record of the current incoming and outgoing transactions. Also, it records all amounts owed by customers and by the business, and more. However, 3 of the main reasons why it is so crucial for any business are:
- Accurate bookkeeping gives organisations a reliable measure of their performance.
- It provides information to make general strategic decisions
- It facilitates a benchmark for organisational revenue and income goals.
On the whole, once a business is running well, spending extra time and money on maintaining proper records is vital for them. But, many small organisations don’t hire a full-time accountant to work for them because of the expense. Instead, they employ a bookkeeper for the purpose.
However, you may often see many people who intend to start a new business overlooking the importance of recording every penny spent and received. As a result, they find it hard to make a profit or keep track of all miscellaneous expenses. And, this is when the role of a bookkeeper comes into play. They help businesses keep all records and build a framework for detecting future profits and company trends.
How Much Does a Bookkeeper Earn?
So, how much do bookkeepers earn per hour in the UK? According to Payscale.com, the hourly rate for a bookkeeper varies from £9 – £19. And, the average earning for bookkeeping services hourly rate is £11.79/ hour. Meanwhile, your total pay can rise to £17k – £36k, depending on the experience level!
- An entry-level bookkeeper whose experience is less than 1 year can expect to earn an average total of £9.89 per hour.
- In the early stage of their career, a bookkeeper earns an average total compensation of £10.26 per hour in the UK. This is the amount that a bookkeeper makes with 1-4 years of experience in this field.
- An intermediate level bookkeeper with experience of 5-9 years earns an average total compensation of £12.
- With 10-19 years of experience, an experienced bookkeeper earns an average total compensation of £14 in the UK.
- In their late-career with experience of 20 years and higher, employees earn an average total compensation of £17.
How to Become a Bookkeeper?
Now that we have established an idea on the bookkeeping profession and how much does a bookkeeper earn in the UK, let us have a look at the several ways to become a bookkeeper.
1. College Course
If you aspire to work as a bookkeeper, you can take recognised accounting or bookkeeping qualification courses. Therefore, some of these widely available qualifications include:
- Level 2 Certificate in Bookkeeping
- Level 2 Certificate in Manual and Computerised Bookkeeping
- Level 2 Certificate in Accounting
- Quickbooks Online Bookkeeping Course
- Xero Courses
Moreover, different colleges have different entry requirements. However, most colleges’ eligibility criteria are to pass at 2 or more GCSE subjects and get an individual grade between A*-D on the subjects.
2. Apprenticeship Program
An apprenticeship program involves working under an experienced professional from the industry and getting professional training. Also, the best part about apprenticeship programs is that you get paid as you learn from the training. In addition, it exposes you to the actual workplace setting and gives a taste of how the daily life of a bookkeeper looks like.
Therefore, you can apply for an ‘Accounts and finance assistant’, “Assistant accountant” or “Trainee Bookkeeper” position. Generally, it takes 12-18 months to complete the apprenticeship. And, after completion, you would be getting a certificate from your mentor.
However, to be eligible to apply for an apprenticeship, you need to pass 2 or more subjects on your GCSE exams from grades A*-D. And, the mandatory subjects are English and Mathematics.
3. Career Path and Progression
After gaining academic and professional training, it is time to gather experience and apply for relevant bookkeeping roles. There are several job-seeking websites in the UK. And, these include Reed, LinkedIn, Indeed, etc. So, set up a profile with all of them and start job hunting!
However, you can also gain further expertise in this area by getting additional academic qualifications. As a result, it would open more doors for you and qualify you for higher positions in bookkeeping or accounting. Moreover, you could also set up your own bookkeeping practice in the long run.
What are the Necessary Skills for Bookkeeping?
Every occupation has a unique set of skills that requires a professional for succeeding in that field. Similarly, bookkeepers need to possess specific skills to develop their careers further and make them more hireable. Therefore, some essential skills are:
- Attention to detail
- Able to work thoroughly
- Administrative skills
- The ability to perform excellently in a team
- Customer service skills
- The ability to become initiative
- Flexible
- Open to change or work in different settings
- Good mathematic skills
- Excellent communication skills
- The ability to operate the computer and essential accounting software
- Confident and able to work under pressure
- Analysing financial statements
Final Thoughts
Bookkeeping is an excellent career choice for you if you are good with numbers and maintaining records. And, it is one of the most popular job fields in the UK. Since you now have an idea of how much does a bookkeeper earn in the UK and their roles and responsibilities, it would be easier for you to decide whether it is the right career for you.
Here at Course Cloud, we have several courses available on bookkeeping and accounting. So, if you want to get further information and expertise in this field, get enrolled with us and plan for a brighter future!
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