The Salary Difference Between Accounting and Bookkeeping
Becoming an accountant typically requires a minimum of a bachelor's degree in accounting and includes a high level of responsibility when it comes to analyzing clients' financial information, keeping records and preparing taxes. Bookkeepers are required to have a minimum of a high school diploma or, in some cases, an associate's degree, and perform more basic updating and maintenance duties on financial records. The salary difference between accounting and bookkeeping is based mostly on this disparity in educational requirements and responsibilities, though other factors such as industry and location affect wages as well.
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Salary Differences
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According to the Bureau of Labor Statistics, the average salary of an accountant in the United States was $67,430 as of May 2009. Accountants in the 10th percentile earned less than $37,690 a year, while those in the 90th percentile earned more than $104,450. In comparison, the average salary of a bookkeeper was $34,750, with those in the 10th percentile earning less than $21,280 a year and those in the 90th percentile earning more than $50,450.
Industry
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The industry of accounting, tax preparation, bookkeeping and payroll services employed the highest number of both accountants and bookkeepers as of 2009, with the former earning an average of $73,920 and the latter earning an average of $34,100, according to the bureau. Accountants working for the management of companies and enterprises earned an average of $66,330 a year, while bookkeepers working for the same employers earned an average of $35,970 a year. Local governments also offered accounting jobs, with a salary average of $57,590, and bookkeeping jobs, with a salary average of $35,830.
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Location
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Wages for accounting and bookkeeping jobs vary from state to state. For accountants, New York was the top paying state as of 2009 with a salary average of $84,280, followed by Washington D.C. at an average of $79,990 and New Jersey with an average of $79,330. For bookkeepers, Washington D.C. was the highest paying state overall with an average of $47,100. Connecticut and Alaska followed with respective salary averages of $40,190 and $39,530.
Advancement
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Bookkeepers can advance their careers by obtaining a bachelor's degree in accounting and seeking work as an accountant. They can also find higher than average paying bookkeeping jobs in other industries; for example, the bureau reports that bookkeepers working for the postal service earned an average of $56,430 as of 2009. For accountants, a job in tobacco manufacturing pays a higher than average salary of $81,560 a year, and working for the federal executive branch is the top paying option with a salary average of $88,190, annually.
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