Accountant or Bookkeeper? Discover the Path to a High Six-Figure Income

As an experienced accountant and former controller, I'm often asked about the differences between the roles of an accountant and a bookkeeper. While these two professions may seem similar on the surface, the job responsibilities, educational requirements, and potential for high earnings can vary significantly. In this comprehensive blog post, I'll dive deep into the distinctions between these two career paths and, more importantly, reveal the strategies you can use to earn a high six-figure income, regardless of whether you choose to become an accountant or a bookkeeper.

Job Responsibilities: Uncovering the Differences

To understand the key differences between accountants and bookkeepers, let's take a closer look at their typical job responsibilities:

The Bookkeeper's Role

Bookkeepers are primarily responsible for the recording and reconciliation of financial transactions. In my previous role as a controller, I had a team of four bookkeepers who were responsible for the following tasks:

• Coding vendor bills and making vendor payments

• Reconciling bank and credit card statements to the company's books and records

• Issuing customer invoices, applying customer payments to open invoices, and following up on late payments

The Accountant's Role

In contrast, the eight accountants on my team were responsible for a wider range of tasks, including:

• Accounting for payroll and various taxes, such as income tax, employment tax, and sales tax

• Closing the books, including making adjusting entries for revenue, cost of goods sold, depreciation, and amortization

• Analyzing the financial statements and providing insights on the company's performance

While bookkeepers focus on the day-to-day recording and reconciliation of financial transactions, accountants are responsible for the higher-level financial reporting, analysis, and strategic decision-making within an organization.

Educational Requirements: Investing in Your Future

The educational paths for accountants and bookkeepers also differ significantly. Let's explore the typical requirements for each profession:

The Accountant's Educational Journey

Becoming an accountant requires a significant investment in your education. In the United States, most accountants will pursue a four-year degree program at a university, which can cost anywhere from $30,000 to $100,000, depending on the institution. Additionally, many accountants will seek further certifications, such as the Certified Public Accountant (CPA) or Certified Management Accountant (CMA) designation, which can add an additional $5,000 to $10,000 to their educational expenses.

The Bookkeeper's Path

In contrast, bookkeepers can often get started in the field with just a high school degree. Many bookkeepers are self-taught, acquiring the necessary skills through a combination of on-the-job training and online courses. Some common ways bookkeepers build their expertise include:

• Taking an entry-level data entry job at a local bookkeeping firm, where they can learn how to reconcile bank statements, credit card statements, and other financial records

• Completing online bookkeeping courses, which are readily available and often more affordable than a traditional four-year degree program

While bookkeepers may not need to invest as heavily in their education, it's important to note that they still need to develop a strong understanding of accounting principles and financial record-keeping to be successful in their roles.

The Road to Six Figures: Strategies for Accountants and Bookkeepers

Now, let's dive into the exciting part: how you can earn a high six-figure income as either an accountant or a bookkeeper. I've been through this journey myself, and I'm excited to share the strategies that have worked for me and many of my colleagues.

The Accountant's Path to Six Figures

As an accountant, the path to a six-figure income typically involves a combination of professional development, job hopping, and a focus on automation. Here's a closer look at the steps I took to reach the $150,000 mark in my career:

• Obtain Your CPA License: Getting your CPA license is a game-changer for accountants. It immediately opens the door to higher-level roles and increased earning potential. When I obtained my CPA, I was promoted to an accounting manager and saw my salary jump from $70,000 to $85,000 per year.

• Change Jobs Every 2-3 Years: While this strategy can be risky, it's one that I've found to be highly effective in accelerating my career growth. By changing jobs every couple of years, I was able to take on increasingly higher levels of responsibility and exposure to different industries, systems, and processes. This allowed me to quickly develop a diverse skill set that made me a valuable asset to employers.

• Embrace Automation: As an accountant, one of the most valuable skills you can develop is the ability to automate various tasks and processes. Hiring managers are always eager to hear about your experience with connecting systems and cutting costs through automation. By learning to leverage tools like enterprise resource planning (ERP) systems, expense management platforms, and equity management platforms, you can demonstrate your value and position yourself for higher-level, higher-paying roles.

By following this path, I was able to reach the $200,000 annual income mark as a controller within 10 years of starting my career. And I've taken all of that real-world experience and poured it into an online course called Controller Academy, where I teach aspiring controllers how to master the skills and strategies needed to succeed in this high-level role.

The Bookkeeper's Path to Six Figures

For bookkeepers, the path to a six-figure income often involves starting your own bookkeeping business. Based on my experience working with bookkeepers, here's a typical roadmap to earning $100,000 or more:

• Start with an Entry-Level Bookkeeping Job: Begin your journey by taking an entry-level bookkeeping position, where you can learn the ropes and gain hands-on experience in areas like coding transactions, managing accounts payable and receivable, and running payroll.

• Spend 2-3 Years Mastering Your Craft: During this time, be hungry for learning and soak up as much knowledge as possible. Become an expert in serving clients and handling the day-to-day bookkeeping tasks that small businesses rely on.

• Transition to a New Firm or Company: After 2-3 years, consider moving to a different bookkeeping firm or company. This will allow you to continue expanding your skill set and exposure to new systems, processes, and industries.

• Launch Your Own Bookkeeping Business: With 4-5 years of experience under your belt, you'll be ready to start your own bookkeeping business. Begin by setting up a simple website using a tool like Wix, and start advertising your services through Google Ads and social media platforms like YouTube or TikTok. It may take 1-2 years to build a solid client roster, but the flexibility and earning potential of running your own bookkeeping business can be truly transformative.

Many of the bookkeepers I've worked with have been able to achieve a six-figure income by following this path and leveraging the power of remote work. In fact, I'm currently working on my own program called How to Become a Remote Bookkeeper Making High Six Figures, which I'll be launching in the summer of 2025. Be sure to keep an eye out for that if you're interested in pursuing the bookkeeping route to a high-earning career.

Conclusion: Choosing the Path That's Right for You

Whether you choose to become an accountant or a bookkeeper, the potential for a high six-figure income is within reach. By understanding the key differences in job responsibilities, educational requirements, and career progression strategies, you can make an informed decision about the path that best aligns with your skills, interests, and long-term goals.

Remember, both accountants and bookkeepers play vital roles in the financial health and success of businesses. By mastering your craft, continuously expanding your knowledge and skills, and leveraging the power of automation and entrepreneurship, you can position yourself for a rewarding and lucrative career in the world of finance and accounting.

If you found this blog post helpful, be sure to connect with me on social media for more insights and resources. You can find me on Instagram, TikTok, and LinkedIn. And don't forget to check out my Controller Academy program, where I share my real-world expertise and strategies for achieving success in the accounting and finance world.