5 Ways to Tell if Bookkeeping Is Meant for You
Written by Bindi Gethen
Making a career choice isn’t like picking out socks in the morning. You don’t just rummage around in the drawer and pull out the first pair that matches. It’s more like choosing a spouse. It’s a commitment, a relationship, something you’re going to wake up to every day. You may even have to explore your options to figure out your nonnegotiables and green flags.
So how can you tell if bookkeeping is the career path for you? Ultimately, assess whether bookkeeping aligns with your long-term goals and passions within the accounting and finance field. If you’re someone who enjoys number-crunching, keeping things organised, being detailed, using bookkeeping software, and talking to clients, you might just be a bookkeeper in the making.
How do I know if bookkeeping is for me?
1. You enjoy working with numbers
When you think about bookkeeping, the first thing that likely pops into your mind is numbers, and rightfully so. Numbers are the primary language of this profession. Bookkeepers tell the stories of profits and losses, incomes and expenditures.
If anything, there’s a vast sea of potential employers who need the skills and expertise of a good bookkeeper. You can’t have a successful business if your books aren’t in order.
2. You know how to communicate data and information
Bookkeeping is more than just crunching numbers and maintaining financial records. It’s about taking that raw data and transforming it into meaningful, digestible information that can guide the decision-making processes of business executives. This process, however, demands excellent communication skills.
Communication skills are among the most sought-after abilities for finance and accounting professionals. You need to foster a positive and trustworthy working environment with colleagues and clients. In a similar vein, you should know how to communicate financial data in simple terms. Clear communication helps stakeholders grasp complex statistics, investment decisions, and data, enabling them to make informed choices.
3. You can stay focused and maintain accuracy
Bookkeeping is a detail-oriented job. It requires the ability to focus and maintain accuracy even when dealing with repetitive tasks. A single misplaced digit can cause a significant financial error, potentially leading to grave consequences for the business.
Focus and precision are not glamorous traits, but in bookkeeping, they are as crucial as technical expertise. A bookkeeper’s job often involves hours of concentration, going through documents line by line, making sure everything adds up correctly.
4. You’re comfortable with technology
Today’s bookkeeping isn’t what it used to be. Gone are the days when bookkeepers spent their time manually entering data into oversized, physical ledgers. In the modern era, bookkeeping is a digital game. You’ll inevitably rely heavily on bookkeeping software solutions and advanced technology. From QuickBooks to Xero, from FreshBooks to Wave, technology is at the forefront of the profession.
This doesn’t mean you need to be a tech whiz or software developer to be a bookkeeper. What it does mean is that you need to be willing to learn, adapt, and grow with the ever-evolving technological landscape. If the thought of learning new software excites you more than it intimidates you, you might find that bookkeeping is the perfect career for you.
Research from McKinsey says that the key to business success is not merely speeding up. Instead, winning companies are dedicating resources to technology, data, processes, and personnel to make better decisions swiftly. This makes them more efficient and gain valuable insights at a rate that’s never been seen before.
I have a bookkeeper friend who initially resisted the shift towards technology in bookkeeping. He preferred the traditional methods and was apprehensive about learning new software (let’s admit, learning new software is hard). However, when his company decided to shift to a digital platform, he took it as a challenge. He enrolled in several online courses to familiarize himself with the software, and today, he’s the go-to person in his company.
5. You’re trustworthy
Trust is the foundation of any relationship, be it personal or professional. However, in the realm of bookkeeping, trust takes on an even greater significance. As a bookkeeper, you will be entrusted with an organisation’s financial information (e.g., earnings, expenditures, financial secrets). It’s a responsibility that demands the highest level of integrity.
Companies need to feel secure that their financial information is in safe hands, that it won’t be misused or mishandled.
One of the most insidious issues in the financial world is fraud. It’s like that sneaky roommate who steals your food from the fridge. Except instead of your leftover pizza, it’s your hard-earned revenue. And believe me, that’s a far more bitter pill to swallow.
Reliable bookkeepers make sure every dollar is accounted for, every transaction is transparent, and every financial decision is grounded in solid data.
Pro tip
When business owners invest in a reputable bookkeeper, they’re not just investing in an individual; they’re investing in financial integrity, transparency, and the future success of their business.
Should you choose accounting or bookkeeping?
As you explore potential jobs in the finance industry, you’ll likely come across two career paths: bookkeeping and accounting. Though these terms are often used interchangeably, they refer to distinct professions within the finance field, each with its unique set of responsibilities and requirements. Understanding the difference between the two can help you make a more informed decision about your career trajectory.
Bookkeeping primarily involves recording financial transactions, which include purchasing, sales, receipts, and payments. A bookkeeper’s role is to ensure all transactions are recorded accurately and timely in the correct daybook, supplier’s ledger, customer ledger, and general ledger.
Accounting, on the other hand, is another ball game. It involves interpreting, classifying, analyzing, reporting, and summarizing financial data. Accountants use the financial information compiled by bookkeepers to prepare financial statements and conduct audits. They also provide financial insights, helping organizations make informed business decisions.
If you enjoy detail-oriented work and have a knack for organization, you might find bookkeeping to be a suitable career path. However, if you’re interested in a more analytical role that involves strategic decision-making, accounting could be the better choice.
Related articles:
Is Bookkeeping a Dying Profession?
How to Hire the Right Bookkeeper: 5 Important Questions to Ask
Make the right choice with The Bookkeeping Studio
Figuring out if bookkeeping is your jam isn’t something you’re going to resolve by spinning a wheel or consulting a magic 8-ball. It requires a deep dive into who you are, what you enjoy, and what you’re good at.
Here at The Bookkeeping Studio, we’re not just about crunching numbers – we’re about helping people, like you, navigate the twists and turns of the finance industry. Whether you’re a fresh grad rookie wondering if this is the right path or an experienced hand looking to sharpen your skills, we’ve got your back. Remember: The choice you make today shapes your tomorrow. Learn more about what we do as bookkeepers today.
Hey, my name’s Bindi Gethen! I’m the founder of The Bookkeeping Studio in Australia. With over 15 years of experience in the industry, I have a deep understanding of the challenges that small and medium-sized business owners face when it comes to managing their finances.
I am passionate about empowering my clients with the financial information they need to succeed. My team and I pride ourselves on our commitment to exceptional value, accuracy, and confidentiality. Our virtual bookkeeping services include payroll, budgets, and management reporting, among others.
Not to toot our own horn, but we can assure you that you won’t find a bookkeeping partner like us anywhere else in the Southern Highlands.
