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How to become a licensed Bookkeeper?

Martin Marry
How to become a licensed Bookkeeper?

Small business professionals commonly wear many hats at an equivalent time, often including bookkeeper. The challenge to those entrepreneurs is that the way a business records and reports its financial activities may have to vary as rules are rolled back or newly issued by government authorities. For this reason, hiring knowledgeable may be a good idea, but small business might not have the resources to rent a whole firm to oversee such duties, which may include keeping track of payroll, billing, and other transactions.

This where a licensed bookkeeper (CB) comes into play.

Many small businesses use bookkeepers as their sole treasurer who keeps watch on their accounts, consistent with the American Institute of Professional Bookkeepers (AIPB). Certified bookkeepers could also be tasked with performing duties that need substantial financial expertise and training.

A professional who earns a bookkeeper certification is predicted to possess the knowledge and skills necessary to perform the essential accounting functions that small business requires. which will include knowing the way to prepare end-of-period adjustments, conduct monthly bank reconciliations, process payroll, and record depreciation for both book and tax purposes.

The Tests

In order to become a licensed bookkeeper, the candidate must first pass a test. Organizations that administer such tests include American Institute of Professional Bookkeepers (AIPB), the National Association of Certified Public Bookkeepers (NACPB), and therefore the National Bookkeepers Association (NBA.)

The NACPB and therefore the NBA are a part of a corporation called Accounting Training Unlimited, which provides online training, testing, and professional certifications. The uniform bookkeeper certification test administered by this company is an open book, multiple-choice exam that covers topics like analyzing business transactions, payroll computations, and financial statements.

This exam consists of fifty multiple choice questions. Candidates must score 37 out of fifty or 75% so as to pass.

The AIPB has its own exam including questions on why accruals, deferrals, and other adjustments are made. The exam is given in four parts, the ultimate two of which are open-book. You want to also understand revenue recognition concepts, depreciation expense for tax and book, and payroll concepts. You ought to be prepared to finish federal reporting forms, required payroll data, Form W-4, and state withholding forms. The exam tests your knowledge of internal controls and fraud prevention. The institute offers study materials for content which will appear on the exam through its website for small fee.

Beyond the exam, the AIPB requires candidates for its bookkeeper certification to possess a minimum of two years of related experience either before or after completing the exam. Applicants for either test must also comply with abide by codes of ethics.

In order to pass the AIPB exam, bookkeepers must receive a minimum score of 75% on the primary two parts and 70% on the second two parts.

Examination Locations and costs

The uniform bookkeeper certification test offered through Accounting Training Unlimited is often taken on any computer with internet access. The applicant must schedule a date and time for the exam and can tend access to the test via email. The test must be completed within a year after the e-mail is shipped. The value to require the test for the primary time is $100 for members and $150 for nonmembers. Applicants who don't pass and need to retake the test must pay another fee, $50 for members and $75 for nonmembers.

The AIPB test are often scheduled to be taken at any of the testing centers operated by a test administration company called Prometric. The value of certification for members of AIPB is $479. Nonmembers must pay $574 for AIPB certification.

Continuing Education Requirements

After attaining certification, ongoing training is required. a minimum of 24 hours of annual training is remitted for the bookkeeper certification available through Accounting Training Unlimited. These hours are often completed through webinars, online portals, and via self-study courses.

AIPB requires bookkeepers to finish 60 hours of continuous education courses every three years so as to take care of their registration. a bit like the ATU requirements, these are often done online or through self-study.

Competitive Advantage

Bookkeepers who earn their certification may have variety of benefits over their peers who haven't done so.

You can use the "CB" designation together with your name to point out your professional status. this will alert companies and potential clients to the talents you possess which can improve the prospect they're going to retain your services.

You can increase your market price and charge more. Certified bookkeepers tend to receive higher salaries than peers who lack a nationally recognized accounting or bookkeeping certification.

Your importance to the corporate or clients may increase. The knowledge and expertise that accompany earning certification will better prepare you to handle online accounting services, bookkeeping, and tax issues small business owners’ face.

Benefits to Small Businesses

Once you've received your certification, you'll market yourself as a licensed bookkeeper. Alongside the CB designation, know what sets you aside from others providing online bookkeeping services, and confirm you're telling business owners the worth of hiring a licensed bookkeeper. While your services could also be a further expense to small businesses, allow them to of the advantages of hiring you such as:

Giving the responsibility to you lets them tend to their business. Small business owner can consider running their business without the burden of balancing the books.

It will crop on costs. While you'll charge for your services, the monthly fees small business owner can pay will likely be much less than if they were handy you or a tax filer/accountant a stack of paperwork to sort through at the top of the year. Plus, if time is money, the owner's time are going to be better spent earning money doing their business, as against spending time trying to work out the books.

As a licensed expert, you'll point the tiny business owner within the right direction if you see opportunities or missteps in their financials.

Martin Marry
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