Bookkeeping vs. Accounting: Choosing the Right Degree for You

Many jobs are classified as part of the accounting industry, and sometimes the term accounting is used as a broad umbrella term to describe more specialized jobs, like bookkeeping.

Earning the right degree for the career path that you're hoping to pursue is essential, and there will be differences in the types of accounting degrees available to students.

Bookkeeping vs. Accounting Degree: Determining Which Is Best for You

The difference between bookkeeping and accounting is the general scope of responsibilities. If you are a business owner, focusing on bookkeeping will probably be a better skill set to learn.

For someone looking to work in an accounting firm or for a larger company, an accounting degree will be better in most cases because it will open up more opportunities for career advancement or even opening your firm.

What Is Bookkeeping?

A bookkeeper focuses on the day-to-day accounting work of a business. For small businesses, this is often done by the business owner or a hired bookkeeper. In larger companies, a bookkeeper's work is often an entry-level accountant job that will be used as a stepping stone This work focuses on daily financial transactions and recording information for financial statements, like cash flow statements, balance sheets, and daily transactions.

Bookkeeping is essential to keeping accurate records to monitor business performance and financial health and ultimately tax filing.

A bookkeeper's role is strictly recording and verifying financial information. Analyzing financial reports for forecasting and seeing the big picture of a company is the work of an accountant.

What Will I Learn with a Bookkeeping Certification?

Bookkeeping certifications cover multiple topics that are related to the day-to-day work of professional bookkeepers.

• tax information
• creating financial records
• payroll
• accounting analysis
• using QuickBooks bookkeeping software and other accounting software
• data entry

There are further certification options that might have different additional coursework and topics covered.

Bookkeeping Education Requirements

To become a bookkeeper, there are no standard education requirements. Many small business owners are their own bookkeepers, without any schooling other than online courses on some of the technical aspects or maybe courses at a local community college.

According to the Bureau of Labor Statistics, most bookkeepers at larger companies do have degrees, but many have accounting degrees and are using bookkeeping to establish themselves with experience to earn their Certified Public Accountant (CPA) licensure.

Bookkeeping Career Paths

For a bookkeeper without an accounting degree, the possible career paths will be more limited. Bookkeepers, with or without degrees, can work as freelancers and provide bookkeeping services to a variety of companies.

Many larger companies also hire bookkeepers full-time to keep track of daily transactions that accounting professionals don't have the time to work on, based on their expanded responsibilities.

What Is Accounting?

The accounting process involves analyzing financial data, filing tax returns, and providing financial advice to companies or individuals, depending on the type of accountant job that a person has.

Unlike a bookkeeper who records financial data, an accountant is responsible for analyzing the data and interpreting it to people either outside of the accounting department or possibly the company at large. Accountants also help with financial forecasting and tax planning.

What Will I Learn with an Accounting Degree?

Accounting degrees come in multiple levels from associate degrees to graduate-level degrees such as master's and doctoral. Although these degrees will go into different depths, most will cover very similar core topics such as general accounting principles.

Students in accounting degree programs will cover topics like:

• tax laws
• filing income statements
• reviewing general ledger entries
• advanced principles of bookkeeping

Accounting Degree Education Requirements

To earn an accounting degree, there are multiple education requirements. For a bachelor's level degree, most programs will include around 120 credit hours covering a variety of accounting-specific courses.

Most people looking to work within the accounting space will want to pursue an accounting degree. With an accounting degree, graduates will be better suited for higher-level financial decision-making, including:

• financial planning
• financial management
• accounts receivable and payable
• tax audits

Accounting Career Paths

With an accounting degree, there are many career opportunities, especially with different concentrations. Accountants can work as:

• tax accountants
• cost estimators
• financial advisors
• payroll managers
• comptrollers
• forensic accounting

One of the most common paths that accountants follow after earning a degree is pursuing a CPA license. This license will allow for more opportunities in both companies and accounting firms or agencies.

How To Choose the Right Degree

If you're trying to choose between bookkeeping and accounting, there are a few factors you should consider.

Although both have common goals of accurately reporting financial information, the two education paths differ in a few key ways.

• Earning an accounting degree will be much more expensive than a bookkeeping certification.
• Some bookkeeping certifications can be completed within months while accounting degrees will often take four years or longer.
• Future career growth will be limited for people with only bookkeeping certifications.

What Are the Key Differences Between Bookkeeping and Accounting Degrees?

The biggest difference between the two education programs is that accounting requires a degree, while bookkeeping is only a certification. There are similarities in the work that the two roles do, but they are largely two different parts of a larger accounting department.

Some of the key differences between the two degree programs are:

• depth of topics covered
• length of time required to complete
• job opportunities available after completion

FAQs About Bookkeeping and Accounting Degrees

Because bookkeeping and accounting are very similar lines of work and many bookkeepers work directly with accountants, there are many common questions about the two.

Is It Better To Major in Bookkeeping or Accounting?

If your career goals include advancing your accounting career to include additional responsibilities or entering management, you'll probably benefit more from an accounting degree. If you're a small business owner who is just looking for a better understanding of your day-to-day financial data, then bookkeeping certifications will be better.

Is Bookkeeping Easier Than Accounting?

In most cases, a bookkeeper's tasks will be easier than an accountant's because of the depth of work required. Bookkeepers are only responsible for recording data and calculating balance sheets, but accountants are responsible for analyzing this data for financial forecasting, tax information, and more.

Should I Get a Degree in Accounting If I Want To Be a Bookkeeper?

Although a degree in accounting will help in a bookkeeping role, it is not a requirement. Most bookkeeper roles in small businesses are performed by people without certifications or degrees, but hiring opportunities with larger employers will often require a degree or at least a certification.

How Can I Make a Bookkeeping or Accounting Degree More Affordable?

Accounting degrees, through accredited universities, often come with hefty price tags. Fortunately, there are many scholarship and grant opportunities available to students earning their degrees. Starting with FAFSA documents, students can figure out their eligibility.

Bookkeeping certifications often have fewer financial aid options, but they are usually much cheaper and some programs even offer free certifications.