Becoming a certified bookkeeper is a great way to further your bookkeeping career. Below, we'll explain each step you need to take to become a certified bookkeeper.
What is a Certified Bookkeeper?
A bookkeeper is a type of accounting position. They manage the financial records for companies and organizations.
Financial statements can include:
- accounts payable and receivable
- debts
- expenditures
- invoices
- profits
- receipts
Bookkeeper certification proves to employers and clients that you have mastered necessary bookkeeper skills and hold the knowledge to be a successful bookkeeper.
What are the Requirements to Become a Certified Bookkeeper?
The requirements needed to become a certified bookkeeper will depend on the certification you pursue.
There are two organizations that cover bookkeeping certifications: the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB).
American Institute of Professional Bookkeepers
The American Institute of Professional Bookkeepers (AIPB) offers a Certified Bookkeeper designation.
To qualify for this designation, you must meet three requirements:
- pass the certification exam
- sign a code of ethics
- fulfill the experience requirements
To fulfill the experience requirements, you must submit evidence of two years of full-time bookkeeping experience or 3,0000 hours of part-time or freelance experience.
National Association of Certified Public Bookkeepers
The National Association of Certified Public Bookkeepers (NACPB) offers a Certified Public Bookkeeper license.
Unlike the AIPB, there isn't one primary exam that students must pass to become certified. Instead, students must complete smaller certifications first.
These certifications are:
- accounting certification
- bookkeeping certification
- payroll certification
- QuickBooks online certification
Applicants also need to agree to the CPB Professional Code of Conduct and have one year of bookkeeping experience.
The steps to becoming a certified bookkeeper will depend on which certification you choose and how much bookkeeping experience you already have.
Steps to Become a Certified Bookkeeper
We've broken down the path to certification into five basic steps to help you reach your goals.
Step 1: Determine Which Certification You Want
There's no substantial difference between the AIPB and NACPB certifications. While they offer slightly different titles, both are nationally recognized and employers are generally happy with either.
However, the path to each certification is slightly different. Determining which one you're going to pursue will determine what requirements you need to meet.
Step 2: Fulfill Necessary Education Requirements
The minimum education needed to become a certified bookkeeper is a high school diploma or GED.
However, there are benefits to earning a college degree, such as an associate or bachelor's in accounting or bookkeeping.
A college degree can help you pass the necessary certification exams. It also is more appealing to employers.
The AIPB doesn't require any particular courses, but you will need to purchase their testing workbooks.
The NACPB requires applicants to complete specific courses before taking the exams.
The four courses are:
- accounting fundamentals
- accounting principles
- payroll fundamentals
- QuickBooks online fundamentals
These courses are offered through NACPB but equivalent courses, like what may be offered through a college degree program, are also accepted.
Step 3: Complete Experience Requirements
The amount of experience required to become certified varies between the two certification bodies.
As mentioned above, the AIPB requires at least two years of full-time bookkeeping experience or 3,000 hours of part-time or freelance experience.
The experience can be completed before or after you pass the national exam. However, it must be completed within three years from the date you pass the exam.
The NACPB simply requires you to submit proof of one year of bookkeeping experience.
Step 4: Take Bookkeeping Exams
Applicants must pass a series of tests before they can earn their certification.
AIPB Exam
The AIPB exam is a four-part exam.
The four parts of this exam are:
- part 1: adjustments and error correction
- part 2: payroll and depreciation
- part 3: inventory
- part 4: internal control and fraud prevention
The first two parts must be taken in person at a Prometric Testing Center. Students have two hours for each exam, and both have a fee of $100. You can pass with a 75% on both.
The first two parts of the exam are taken on a computer and made up of multiple-choice questions.
The adjustments and error correction part is made of two tests: accruals, deferrals, and the adjusted trial balance; and correction of accounting errors and the bank reconciliation.
The payroll and depreciation part is divided into a payroll test and a depreciation test.
The final two parts of the exam are open-book tests that come in the back of the workbooks. There is no time limit or fee to these exams, and a passing grade is 70%.
AIPB offers six prep course workbooks. The exam for the third part can be found in the Mastering Inventory book and the exam for the fourth part is in the Mastering Internal Controls and Fraud Prevention book.
NACPB Exams
There are four individual exams needed for the NACPB, and each exam should be taken once you finish each course.
The four exams are:
- bookkeeping certification
- payroll certification
- QuickBooks online certification
- accounting certification
These tests are taken through the NACPB's online testing center and are open-book. All exams are made up of 50 multiple-choice questions and simulations.
Students have two hours to complete an exam, and each exam has a $100 fee. A passing grade is 75% for every exam.
Step 5: Fulfill Ethics Requirements
Both the AIPB and the NACPB require students to agree to abide by a code of ethics.
The AIPB requires applicants to sign a code of ethics that includes specific ethical obligations to clients, society, and other bookkeeping professionals.
The NACPB requires applicants to agree to abide by the CPB Professional Code of Conduct. This agreement is included in the application for licensure.
Step 6: Keep Your Certification Current
Both entities require you to renew your bookkeeping certification periodically.
The AIPB requires that you obtain and submit proof of 60 Continuing Professional Education Credits (CPECs) within a three-year block.
You'll receive more information about CPECs after you've earned your initial certification.
The NACPB requires you to renew your license each year. To renew your license, you'll need 24 hours of CPECs and will need to pay a $25 fee.
Become a Certified Bookkeeper Today
To become a certified bookkeeper, you'll need to fulfill the necessary education and experience requirements as well as take the bookkeeping exams as identified by the certification body of your choice.
To learn more about becoming a certified bookkeeper, contact Best Accredited Colleges today.
