What is a Certified Bookkeeper?
Posted by Mariann Goff on Tue, May 25, 2010
Is there a difference between a certified bookkeeper and just a bookkeeper?
Well of course!
According to the American Institure of Professional Bookkeepers (AIPB) a certified bookkeeper must be able to:
- Understand basic bookkeeping tasks such as double-entry accounting.
- Pass a national exam in advanced bookkeeping at Prometric Test Centers.
- Accomplish at least 3,000 hours (or 2 years) of on-the-job-experience in bookkeeping.
- Sign a Code of Ethics to assure a commitment to integrity.
- Constantly update skills by earing 20 Continuing Education Credits every year.
Why does this matter? I mean, can't you get by with just downloading some software and entering your bills and invoices?
Sure, you can also cross your fingers and hope you are making the right decisions for your business, or that you will not get audited, or miss out on some important tax deductions. I mean it's just money afterall right?
So what do you have to gain by using a certified bookkeeper?
Here are just a few:
- Have accurate financial statements to base your business decisions on and submit for taxes. Your financial statements and tax returns are only as good as the books you give to your CPA.
- Save on expensive accounting hours. At more than $150 an hour, does it make sense to have your accountant enter your receipts and balance your books? Most accountants will not even do it!
- Find accounting errors before the IRS does. No one likes to hear the "A" word. But audits are on the rise and more businesses are being caught off guard.
- Manage your company's payroll. This can not only save you on overtime pay, but a certified bookkeeper can also make sure things are classified correctly.
- Maximize your tax depreciations. (without inviting an audit!)
- Reduce waste by correctly recording and managing your inventory. You can always know what you have on hand and then only order what you need when you need it. No surprises.
- Avoid costly losses from fraud and theft. It happens, and not just from employees helping themselves to the cash register. But it also can happen with customers who scam, or vendors who are dishonest.
Want to learn more and find out what all this means to your company? Start by downloading the 2 page AIPB Certified Bookkeepers Guide.
Knowledge is power!