Guide To A Bookkeeper Career Path

Every business needs a detail-oriented bookkeeper. If you are considering starting a bookkeeper career path, here is everything you need to know.

What does a bookkeeper do?

A bookkeeper is in charge of recording the day-to-day financial transactions of a business or company. These include purchases, sales, payments, and receipts. They are tasked with the important administrative role of generating data that reflects the activities of an organisation.

Bookkeepers and accountants also work hand-in-hand. The latter uses the data generated by the bookkeeper to provide insight into the financial situation of a company or business. Therefore, an accountant can also do some bookkeeping tasks. On the other hand, a bookkeeper can only become an accountant with proper certification.

Since we are now in the digital age, bookkeepers are also expected to be knowledgeable with various financial technology tools, especially bookkeeping and accounting software. Therefore, they also spend substantial time learning these platforms to update their skill sets and adapt to the requirements of their bookkeeping tasks.

Here are some of the core tasks of a bookkeeper:

• Logging financial transactions
• Posting debits and credits
• Creating invoices
• Receiving, documenting, and handling cash, vouchers, and cheques from clients
• Processing accounts payable and receivable
• Handling payroll promptly
• Creating financial transaction reports for the company
• Auditing financial records and ensuring that the books are balanced
• Working with an accounting team to create and analyse reports, manage tax payments, and secure other legal requirements

Salary Range

According to Payscale, the average annual salary of a bookkeeper in Malaysia isMYR 29,330or aroundMYR 2,444monthly. The salary range is fromMYR 1,570toMYR 4,730.

The main factors that affect the annual salary of a Bookkeeper are years of experience, location, and education. As can be expected, the higher the experience level, the higher the wage. Bigger cities also offer higher salaries. A Bachelor’s Degree holder also earns the most compared to a High School degree or certificate holder.

What is the career path of a bookkeeper?

Every company or organisation will have its own career roadmap and growth opportunities for employees. However, bookkeepers typically advance their career path with years of experience and valuable skills they obtain along the way.

Here is an example of a typical career path for bookkeepers:

Junior Level (1-3 years experience)

• Bookkeeper
• Finance Assistant
• Accounts Officer

Mid Level (4-8 years experience)

• Accounts Executive
• Finance and Accounts Executive

Senior level (8 years or more)

• Senior Account Executive

What requirements do you need to become a bookkeeper?

Different companies will also have different and particular requirements for their bookkeeper job postings. However, these are some of the most common skills and qualifications that you will find in most listings:

Required skills

• Basic bookkeeping and accounting principles

These are the foundation of bookkeeping practice.

• Data entry skills

Bookkeepers will input a lot of information into digital books, so it is important that they can enter data quickly and accurately.

• Computer literacy and proficiency in bookkeeping/ accounting software

Since most bookkeeping tasks are now done using computers and financial software, bookkeepers must be highly proficient in these digital tools. It is also highly recommended that they have extensive knowledge of one or two software, and can quickly adapt to new software if necessary.

• Mathematics

Apart from modern bookkeeping software, bookkeepers must also understand the principles behind the calculations. This will also allow them to incorporate figures and computations that accounting software may not include.

Other skills

• Organisation

This is key to ensuring that financial records and reports are accurate. An organised and reliable system will allow a bookkeeper to pull a record anytime for any purpose.

• Accuracy and attention to detail

Beyond the ability of organisation, a bookkeeper must also have a good eye to log and file data into a system correctly and accurately.

• Communication skills

Bookkeepers will be regularly interacting with people within and outside the organisation, including clients and vendors. Therefore, they should be able to effectively deliver their reports and communicate any issues.

• Interpersonal skills

This transferable skill is crucial in any field or industry, but more so with professionals like bookkeepers, who are often client-facing representatives of a business or organisation.

Educational background

Bookkeepers are expected to possess at least London Chamber of Commerce and Industry (LCCI) qualifications, and a Diploma or Bachelor’s Degree in Accounting, or equivalent.

Opportunities for Continuous Education

Bookkeepers should ideally take extra courses and additional training in various accounting software to upgrade their skill sets. Another route that bookkeepers can take to advance their careers is to pursue higher education in Accountancy. Among their options is to study under professional accountancy bodies in Malaysia such as the Association of Chartered Certified Accountants (ACCA), Chartered Institute of Management Accountants (CIMA), and Malaysian Institute of Accountants (MIA).

How to write a bookkeeper’s resume

Download the Bookkeeper free resume template here

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