How Much Do Bookkeepers Make? Every Number You Need to Know!

Did you know that the average salary for bookkeepers in the UK ranges between £20,000 and £30,000? So, if you’re considering a career in bookkeeping, understanding how much they make is essential. Whether you’re just starting or have been in the field for a while, knowing your earning potential can help you plan for the future.

What Does a Bookkeeper Do?

Before diving into the salary details, it’s important to understand what a bookkeeper does. A bookkeeper is responsible for maintaining financial records. This involves tracking expenses, ensuring accuracy in financial data, reconciling accounts, and producing financial reports. Although bookkeepers are not accountants, they play a critical role in managing the day-to-day financial operations of businesses.

How Much Do Bookkeepers Make on Average?

The average salary for bookkeepers can vary significantly depending on factors such as experience, location, and the type of industry they work in. However, on average, these professionals in the UK make around £20,000 to £30,000 per year.

• Entry-Level: Those new to the field usually start on the lower end of the pay scale. If you are just beginning, you can expect to earn between £18,000 and £22,000 per year. However, as you gain experience, your pay can increase significantly.
• Mid-Level: After a few years in the role, your earnings will likely grow. Mid-level professionals with more experience and skills typically earn between £25,000 and £30,000.
• Experienced Bookkeepers: For those with several years of experience, the salary can climb even higher. Professionals with over five years of experience may earn anywhere from £30,000 to £40,000 or more, depending on additional responsibilities.

Factors That Affect How Much Bookkeepers Make

As with any profession, there are various factors that affect how much bookkeepers make. These include experience, qualifications, location, and whether you work full-time or part-time.

Experience

Experience is one of the biggest factors that influence salary. Therefore, the more experience you have, the higher your earning potential. As a result, entry-level employees often make less, while those with years of practice can command higher wages.

Qualifications

Although formal qualifications are not always required to become a bookkeeper, having certifications can boost your earning potential. For instance, individuals who have earned accreditation from professional bodies like the Institute of Certified Bookkeepers (ICB) or the Association of Accounting Technicians (AAT) can typically earn more than those without any formal qualifications.

Location

Location plays a key role in determining how much they make. Bookkeepers in large cities such as London or Manchester are likely to earn more than those working in smaller towns. However, the higher salary is often balanced out by the cost of living in those areas. So, it’s important to consider that in London they may earn more, but they will also face higher living expenses.

Type of Employer

The type of business you work for also impacts your salary. For example, those who work for large corporations may earn more than those working for small businesses. Additionally, freelancers who take on multiple clients can potentially earn more, though this also comes with less job security and added responsibility.

How Much Do Freelance Bookkeepers Make?

Freelancing is an attractive option for many bookkeepers because it offers flexibility. But how much do they make compared to those in full-time roles?

They usually charge an hourly rate, which can range between £15 and £30 per hour, depending on experience. However, this can vary based on the clients you work with and the level of services you provide. Thus, if you have a steady flow of clients, freelancing can be more lucrative than a traditional role. However, it’s important to remember that freelance work also comes with additional challenges, such as managing your own taxes and health insurance.

List of Industries Bookkeepers Work In

Bookkeepers are employed in a variety of industries. Some common sectors include:

• Retail: Bookkeepers help manage inventory costs, sales records, and expenses.
• Construction: They track project costs, invoices, and payment schedules.
• Non-profit organisations: Bookkeepers help manage budgets, donations, and financial reporting.
• Healthcare: They ensure that medical practices maintain accurate financial records.

Additional Skills That Can Increase Your Earnings

If you’re looking to increase your earning potential as a bookkeeper, consider developing additional skills. While basic bookkeeping skills will always be in demand, employers often look for candidates who offer more. Here are a few areas where you could enhance your skills to earn more:

• Software Proficiency: Proficiency in bookkeeping software like QuickBooks, Xero, or Sage can set you apart from other candidates. Therefore, if you have advanced skills in using these platforms, you’re likely to command a higher salary.
• Tax Knowledge: Some bookkeepers also offer tax preparation services. Thus, learning more about tax laws and regulations can make you more valuable to businesses, allowing you to charge higher rates for your services.
• Payroll Management: Many professionals also handle payroll for businesses. Gaining expertise in payroll management can be another way to boost your earnings. So, if you learn how to manage payroll effectively, it can add to your skill set and increase your earning potential.

How to Increase Your Salary as a Bookkeeper

Now that you know how much bookkeepers make, how can you increase your salary? Here are a few ways:

• Gain more experience: As mentioned, experience is a major factor in salary growth. The longer you stay in the profession, the more you will likely earn.
• Further your education: Earning additional certifications or qualifications can help you advance in your career and increase your earnings. Moreover, many employers offer higher pay to those who have specialised training.
• Consider freelancing: As a freelance bookkeeper, you can set your own rates and potentially earn more than you would in a full-time role. However, this path requires more effort in finding clients and managing your own business.

Conclusion

In summary, how much do bookkeepers make? On average, bookkeepers in the UK earn between £20,000 and £30,000 per year, depending on factors such as experience, qualifications, and location. Freelancers can also make a competitive hourly rate, often between £15 and £30 per hour. If you’re looking to increase your salary, consider gaining more experience, furthering your education, and possibly exploring freelancing opportunities.