5 Experts Explain Why Bookkeeping Is Not a Dying Profession

However, bookkeeping and accounting clerk jobs are expected to decline, with the BLS projecting a 5% fall in jobs over the same period. The BLS notes that job growth for accountants should track fairly closely with the broader economy. However, bookkeepers will face pressure from automation and technology that will reduce the demand for such workers. According to the BLS, most bookkeepers work for professional services firms; retail and wholesale businesses; and finance, insurance, and healthcare providers. The job has traditionally been performed in office settings. However, remote work opportunities have become increasingly available since the COVID-19 pandemic.

From Abacus to Software

This is not entirely disastrous; as profitable as bookkeeping may have been at one point, it was always a ‘low end’ product. Accountants advise leadership on how to make more strategic financial changes that save the company money or generate more profit. For some of the businesses that they do, accountants also need to be registered certified public accountants (CPAs). Time-saving – With mundane tasks cleared from the accountants’ plate, they can focus on other essential tasks. With access to more data than ever, they can use this time to help companies make sense of all the financial data and help them make the right decisions. Rather your business is large or small, you need an understanding of your accounting needs.

What advice would you give to students considering becoming a bookkeeper?

For example, in FY 2021, 2% of federal vehicle purchases were zero-emission, and by FY 2022, that had grown to 12%. That means 88% of the vehicles purchased by the federal government were powered by internal combustion engines. Still, a journey of a thousand miles begins with a single step. This is not something to bemoan, as it is good for accountants’ clients as well as for accountants themselves; we’re now liberated to focus on more profitable work and to take on more clients. It’s a ‘win-win’ situation for all concerned, bar those who exclusively market themselves as bookkeepers.

Can you make a career out of bookkeeping?

Nearly all bookkeeping is done using computerized accounting software and programs, so bookkeepers should be comfortable learning new technology if not proficient in it. As an accountant, you may work for a company or yourself, and there are opportunities for accountants in many industries like law, insurance and health, small business, and, of course, tax accounting firms. Accountants work with numbers and financial details all day long. Therefore, those who do not like math, get confused easily when making simple calculations, or are generally opposed to number crunching should not apply. Overall, the labor market for bookkeepers is projected to decline as more complex accounting software platforms automate some of these professionals’ duties. Even so, the BLS projects more than 170,000 bookkeeping job openings per year from 2020 to 2030.

Detailed knowledge of accounting principles and best practices is essential. A bookkeeping career focusing on payroll duties involves time tracking, benefits management, and wage distribution. Bookkeepers who specialize in this area also tie their work to the revenue or funding sources that finance is bookkeeping a dying profession outgoing payments. I think that despite these advancements, bookkeeping remains a necessary and valuable profession. While technology can certainly streamline processes and reduce human error, it cannot replace the critical thinking and decision-making abilities of a skilled bookkeeper.

Why The Demand for Bookkeepers is Dropping

As a result, 43% of companies surveyed by the WEF stated they would be reducing their workforce in the future due to integrating new and existing technologies. It’s expected that humans and machines will spend equal amounts of time on current tasks by 2025. New technologies and systems continuously replace human-performed functions in various careers. Here at The Bookkeeping Studio, we make lifelong learning a priority.

Conclusion: The Balance Between Technology and Humans

• It’s essential if you want to remain relevant in your career.
• Bookkeepers especially should be able to spot issues with daily expenses and make sure all the data points are tracked correctly.
• The CPA can add more value than any C-suite member, thanks to their unique perspective, their access to information, their training and their experience.
• Both accountants and bookkeepers maintain accurate financial records, and sometimes, the terms are used interchangeably.
• Larger companies or public organizations may hire payroll bookkeepers as a separate role.
• In large organizations close is a tiresome process and lot of employees feel weary at the mention of month end close.

Harness the power of an improved business model and use it to bolster and scale up your firm. Does this mean your duties are soon to be replaced by a machine? That your daily functions will someday no longer be necessary? They expect accounting as it’s performed today to be phased out by 2025. COVID has forced firms to make technological jumps—especially those practices with long-held hesitations.

What does this mean for an accountant or an accountancy firm? Well, for one thing, it means that they will not be hiring any more bookkeepers in the near future. There’s no point having capacity for a service no-one wants from you.

Tax laws are constantly changing, and accountants need to stay up-to-date on the latest changes. They also need to understand a business’s financial situation to provide accurate tax advice. With the invention of software that replaces manual data entry, there are fears that such programs will take jobs away from https://www.bookstime.com/articles/what-is-encumbrance-accounting bookkeepers and accountants. These factors, in the authors’ opinion, have led to a severe lack of a supply of accountants. The accounting profession must take quick action to address these issues. The proposed options presented above are targeted toward one contributor to this problem, the 150-hour requirement.