B usinesses today face the challenges of a rapidly changing environment, so look for professional bookkeepers with the skills to help meet these challenges.
What is Bookkeeping?
Bookkeeping is the recording of financial transactions such as purchases, sales, accounts receivable and accounts payable and is a large part of the accounting process.
A bookkeeper is responsible for setting up and entering the day-to-day financial transactions and preparing the financial statements so that an accountant can review and report the company’s financial situation to the board of directors as well as perform legal and tax reporting requirements.
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Is There a Difference Between a Bookkeeper and an Accountant
Many people think of Accounting and Bookkeeping as being the same thing since accounting includes the bookkeeping function, but bookkeeping is just one part of the accounting process and they are different professions.
Bookkeeper
- Generally does not have a degree in finance, but typically have diplomas or bookkeeping certificates
- A Bookkeeper records the day-to-day financial transactions (sales, accounts receivable, accounts payable, operating expenses, payroll, etc.
- Is responsible for one piece of the accounting process
- May not see the financial big picture
- Typically earns much less than a certified accountant
Accountant
- Has an undergraduate or graduate degree and has received professional certification
- Has the knowledge to perform all parts of the accounting process, including the bookkeeping part
- Is responsible for verifying the work of the bookkeeper
- Sees the organization’s overall financial picture and usually helps management make financial decisions
How to Become a Bookkeeper in Canada
The bookkeeping profession is not regulated in Canada and there are no criteria for educational requirements, however employers prefer to hire bookkeepers with a diploma or associates degree in Bookkeeping or Accounting. While not regulated, becoming a member of bookkeeping’s professional associations and becoming certified (Canadian Institute of Bookkeeping) provides recognition for bookkeepers as accounting professionals and increases your overall marketability.
What will I learn in a Bookkeeping Course?
Bookkeeping courses will teach you how to record all daily financial transactions using double entry bookkeeping, which means recording an entry in both a debit and a credit account.
When selecting a bookkeeping course, whether offered as a Bookkeeping Certificate or a diploma, ensure the courses cover all a bookkeeper’s general responsibilities such as:
- Creating invoices
- Recording receipt of payments
- Monitoring accounts receivable
- Matching invoices from suppliers to purchase orders and verifying for accuracy
- Paying suppliers
- Processing payroll
- Recording and remitting payroll taxes
- Recording adjusting entries
- Recording depreciation
- Managing filing system
- Prepare financial reports for accountants review
Accounting and bookkeeping services are present in every industry, which is the main factor influencing job growth in this area. Service Canada indicates that job opportunities will occur primarily due to the need to replace bookkeepers who will retire, obtain promotions as well as new positions.
Median Wage in Canada |
Alberta |
$25.00 |
BC |
$23.00 |
Manitoba |
$20.96 |
New Brunswick |
$20.83 |
Nova Scotia |
$20.00 |
Ontario |
$22.60 |
Quebec |
$20.67 |
Source: jobbank.gc.ca; modified August 4, 2020
People with bookkeeping training may be employed as:
- Bookkeepers
- Accounts Receivable/Accounts Payable Clerks
- Payroll Administrators
- Budget Coordinators
- Assistant Controllers
- Office Managers
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