There is currently not a government-mandated certification process for bookkeepers in the United States. Anyone can purchase accounting software, print business cards and call themselves a bookkeeper.
In order to test the competency of bookkeepers who are not certified through any of the recognized organizations, like the National Association of Certified Public Bookkeepers, and the American Institute for Certified Professional Bookkeepers, we have created written in-house bookkeeping examinations. Before we hire a new bookkeeper, they must score 80% or better on our tests.
Choosing a bookkeeper can be daunting. We want to make sure that you find the one that best fits your needs, even if that isn’t us.
Full-Cycle Bookkeeper
A full-cycle bookkeeper is a liaison between you and your Certified Public Accountant (CPA), performing all aspects of bookkeeping: accounts payable, accounts receivable, payroll, data management, account reconciliations, recording journal entries, creating detailed reports, software training & interfacing, and we work with your CPA to ensure that your taxes are filed correctly and on time.
Data Entry Bookkeeper
Most data entry bookkeepers will only know the basics of invoicing, applying payments, and check writing. They lack the training on how accounting software works with debits and credits, troubleshooting, correct reconciliation techniques, and reporting. Many businesses will hire a data entry bookkeeper thinking they’re hiring a full-cycle bookkeeper at an inexpensive rate.
A QuickBooks ProAdvisor® is very different from a QuickBooks Certified ProAdvisor®.
Having an under qualified bookkeeper can cost you time to correct recorded entries and can cost significant money due to poor financial planning, or government penalties. It may appear that you’re saving money, but only an experienced full-cycle bookkeeper who can manage your books completely and accurately, will save you time, money and peace of mind in the long run. What are accurate, up-to-date financials worth to you?
Even more important…
Data entry bookkeepers will soon become extinct; they’re being replaced by artificial intelligence, which will save you even more time and money. We no longer enter data manually. We have an app for that. Several of them, in fact. The title of the person who does the little bit of data entry that’s still required has been changed to data entry technician. That person is no longer considered a bookkeeper.
We believe that excellence in bookkeeping is fundamental to the success of a small business. We are committed to education and training in order to raise the standard of bookkeeping across the country.
Bookkeeper Redefined
Old definition: A person who records the day-to-day financial transactions of a business. He or she is usually responsible for writing the daybooks, which contain records of purchases, sales, receipts, and payments.
The Old Definition Is No Longer Accurate
New definition: A management accounting professional, often specializing in financial compliance, business strategy, technology setup, execution, and maintenance.
We hope you have found this information on how to tell the difference between a data entry bookkeeper and a full-cycle bookkeeper helpful.
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www.BalanceWiseBookkeeping.com