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Qualifications and requirements vary depending on the state you live in. Many accounting firms prefer candidates without a CPA certification if they have at least three years of experience as an accountant. The best way to determine whether or not your career choice is right for you is talking with recruiters and accountants who can help pick what type of training would be best suited for your needs.
A certified bookkeeper has proved that they possess the necessary knowledge, abilities, and work experience to fulfill the functions of a bookkeeper. One of the two leading professional bookkeeping organizations, AIPB and NACPB, is the best approach to becoming a certified bookkeeper. You may also become certified by taking classes at a local or online institution.
Both the AIPB and the NACPB are nationally recognized certification programs that may be used on your CV. Finishing the AIPB program earns you the designation of certified bookkeeper (CB), whilst passing the NACPB program earns you the title of certified professional bookkeeper (CPB). Both provide you an advantage over other candidates when applying for jobs or seeking freelancing work, which is why we advocate them above other courses and certifications.
You may become a certified bookkeeper in one of four ways:
The American Institute of Professional Bookkeepers (AIPB)
The AIPB’s main purpose has been to establish accounting as a profession and professionals as bookkeepers. The AIPB does not have any educational requirements for certification. The overall cost of certification, which includes the application fee, all workbooks, and test costs, is $479 for AIPB members and $574 for nonmembers.
The AIFB accreditation process is comprised of five easy steps:
- Fill out an application.
- Obtain the required job experience
- Pass the certification test, which is divided into four parts.
- Follow the code of ethics.
- Each year, complete an average of 20 hours of CPE.
The certification test is divided into four sections. Parts 1 and 2 must be completed in a testing location, whereas parts 3 and 4 are “take-home” tests that you may complete at your leisure and return to the AIPB for grading. To gain certification, you must receive 75 percent on parts 1 and 2 and 70 percent on parts 3 and 4.
You will get a certificate of accomplishment and the initials “CB” after your name, which stands for Certified Bookkeeper if you have successfully completed all certification criteria. This information may then be used in your email signature, business cards, social networking sites, and other marketing materials. This will demonstrate to prospective clients that you are qualified, resulting in more leads and the ability to negotiate better billing rates.
As previously said, this certification is great if you have no formal schooling in accounting but have worked in the area and want to expand your expertise in order to further your career. If you want to establish a bookkeeping company and want to attract more customers, this is an excellent road to pursue.
“I received my certification in 2003. I didn’t have any formal accounting or bookkeeping training. I was, nonetheless, employed as a bookkeeper. After being laid off, I decided to open my own practice. After becoming a qualified ProAdvisor for QuickBooks, I chose to pursue the AIPB certification. I gained a better knowledge of how debits and credits operate while studying for the test. You learn more about what accounting software, such as QuickBooks, does behind the scenes. This is critical when you need to assist customers in troubleshooting difficulties that may develop when using accounting software. It was well worth the effort to get AIPB certified!”
— Jody Linick, CB, FitBooks Pro Founder
Requirements for AIPB Certification
To become AIPB certified, you must successfully complete a total of five phases. You must fill out an application, have the appropriate job experience, pass a four-part certification test, agree to and sign a code of ethics, and keep up with the needed continuing education units.
Send in your application
The two-page application is the initial step toward becoming AIPB-certified. Basic information such as your name, address, date of birth, and information about your present employer will be provided. If you’re a freelancer, you’ll mention that on your application. You must also state whether or not you have the required job experience (which we will discuss next).
Remember that you are not required to fulfill the work experience criteria before submitting your application. When you send the application, you must also include a registration fee of $25 (AIPB members) or $60 (nonmembers of AIPB).
Describe your work experience
The submission of a statement of your experience working as a bookkeeper is the second stage in the AIPB certification procedure. For full-time bookkeepers, a minimum of two years of work experience is necessary. If you work part-time or as a freelancer, you must complete a minimum of 3,000 hours of bookkeeping work.
As previously stated, the work experience requirement does not have to be fulfilled at the time of application submission. In actuality, you have three years to fulfill the work experience requirement from the day you pass the final portion of the test. If you have some but not all of the requisite job experience, you should provide the hours you have accrued so far with your application. When you’ve completed the remaining hours, you may submit them when you’re ready.
For hired bookkeepers, you must get the signature of the employer(s) under whose supervision those hours were performed. You must get the signature of each customer for whom you are submitting hours if you are a freelancer.
Certification Exam Success
The third and last stage is the most important: you must pass the certification test. The certified bookkeeper test is divided into four sections. Two portions of the test must be taken in a Prometric Test Center, and the remaining two parts may be found at the back of the workbooks you’ll need to study for the exams. Each workbook may be bought individually, or the bundle can be purchased for $254 for AIPB members and $314 for nonmembers. The test consists of four sections, each of which is multiple choice.
Details about the AIPB Certification Exam
Please note that parts 1 and 2 must be scheduled via Prometric. Do not attempt to book a test until you have received notification from AIPB that your application has been processed and your testing identification number. Find a Prometric test center near you. There are over 300 Prometric test locations countrywide.
You will get your test results immediately after completing parts 1 and 2 at the Prometric Test Center. You may fax or submit your test to AIPB for grading for parts 3 and 4. You may repeat parts 1 and 2 for $60 each, and parts 3 and 4 for $25 each, if you do not pass any section of the test.
Sign the Code of Conduct
The agreement to follow the AIPB code of ethics is the fourth stage in the certification process. This two-page paper highlights internal bookkeepers’ responsibilities to their employers, customers, and society. It also covers a bookkeeper’s responsibilities to the bookkeeping and accounting professions.
Keep your certification current.
Maintaining your certification requires the fifth and final step. Certified bookkeepers must obtain 60 continuing professional education credits every three years beginning on the anniversary of the last certification test passed (or the date you satisfy the experience requirement if this requirement is met after you pass the exam) and every three years thereafter, similar to most certification programs.
CPE credits may be earned in a variety of methods. CPE credit is available for both online and on-the-ground programs. One of the advantages of being a member of the AIPB is that they provide a variety of CPE training courses to its members. If you do not satisfy the continuing professional education requirements, your bookkeeper certification will be revoked.
Options for AIPB Certification Exam Preparation
Whether you’re new to accounting or a seasoned pro, we urge that you study and prepare for the test to ensure your success. There are a variety of alternatives accessible to you depending on your learning style.
We’ve included three possibilities for you below that we felt were quite good:
Self-paced
Six workbooks have been produced by the AIPB, one for each subject covered in the test. Each segment of the workbook contains two tests to check that you understand the principles presented. At the conclusion of each workbook, there is a final test that you should regard as a “practice” exam.
For AIPB members, the entire cost, including the exam fee for parts 1 and 2, is $479, compared to $579 for nonmembers. This is the most cost-effective way to prepare for the test. The content and cost of the workbooks, which may be bought directly from the AIPB, are summarized below:
Instructor-led and self-paced
Ed2go offers a hybrid curriculum that combines self-paced learning with teacher support. The six workbooks mentioned in the preceding section are included in this program, as well as the cost of taking parts 1 and 2 of the test. This preparation course costs $1,995.
Because of the program’s style, students may work at their own speed. Within six months, all tasks must be accomplished. The advantage of this course is that you will have access to an instructor if you have any questions or need assistance.
We chatted with Wade Lindenberger, one of the teachers who conducts this course, and he told us the following:
“This course offers supplemental quizzes and tests in addition to the AIPB workbooks to assist students to comprehend the subjects presented. Students may also send an email to the teacher with questions or clarifications on tough areas. We will contact students if required to assist them in resolving any difficulties. Students should plan on devoting 120-140 hours to their studies. The majority of students finish the course in four to five months. I also advise students to take the examinations as soon as they finish each segment of the course, while the knowledge is still fresh in their minds.”
— Wade Lindenberger, ed2go Instructor
Live classroom
A live teacher teaches a prep course via UCSD Extension. The AIPB certification test is covered in this course. It employs the six workbooks we described before and depending on the course, it may meet once or twice a week. It is taught at the UCSD campus in San Diego, and the cost is $1,995, which includes all six workbooks as well as the test costs for parts 1 and 2 of the exam, comparable to Ed2go.
The National Association of Certified Public Bookkeepers (NACPB)
The NACPB has been around for quite some time. Its main purpose is to guarantee that only competent bookkeepers are hired to provide bookkeeping services. This aim is accomplished through certifying, teaching, and licensing bookkeeping students, workers, and professionals in the areas of bookkeeping, accounting, payroll, QuickBooks, tax, and Excel.
The NACPB provides both a certification and a licensure program for bookkeepers. During our investigation, we discovered that the AIPB’s bookkeeper certification curriculum is more identical to the bookkeeper licensing program. As a result, we’ve chosen to provide you with information on the prerequisites for the NACPB’s bookkeeper licensing program.
A bookkeeping license may be obtained in one of two ways, according to the NACPB. A bookkeeping certificate, as well as an associate’s or bachelor’s degree in accounting, are required for the Education route. The work experience option, on the other hand, does not need a formal degree, but it does necessitate at least two years (or 4,000 hours) of work experience as a bookkeeper or accountant.
The four-part certification test is entirely computerized and may be completed from the comfort of your own home. To get your license, you must get a 75 percent or better on each component. For NACPB members, the total fee of all four sections of the test is $400, while for nonmembers, it is $600. If you opt to become a member, you will have access to various free study resources. In addition, for $1,596 for NACPB members and $1,996 for nonmembers, they offer a test preparation course.
You will get a certificate of completion after passing the test and satisfying all of the prerequisites. You’ll also be allowed to add the initials “CPB” to your name, which stands for Certified Public Bookkeeper. To publicize your success, use it in your email signatures, business cards, social media sites, and any other marketing materials.
The NACPB is ideal for someone with a formal accounting background, such as an associate’s or bachelor’s degree. It’s also desirable for someone with at least two years (4,000 hours) of experience as a bookkeeper.
What Does It Take to Become NACPB-Certified?
You have two options for obtaining certification via NACPB: license by education or license by work experience. The following are the details for each path:
Education provides a license.
If you already have a bookkeeper’s certificate or an associate’s or bachelor’s degree in accounting, you are eligible to apply for a license through the education path; this simply means that the knowledge and skill you have already acquired is sufficient for you to apply for a license without having worked as a bookkeeper.
The stages to completing the license through the education route are as follows:
- Pass the test
- Accept the Code of Professional Conduct as a binding agreement.
- Each year, complete 24 hours of Continuing Professional Education (CPE).
- Submit the CPB’s licensure application.
Work Experience
If you have more work experience as a bookkeeper or accountant than you have education, you should apply for your license through the work experience route. This implies you must have worked as a bookkeeper or accountant for at least two years (4,000 hours).
To complete the license via the work experience route, perform the steps below:
- Pass the test
- Accept the Code of Professional Conduct as a binding agreement.
- Each year, complete 24 hours of Continuing Professional Education (CPE).
- Submit the CPB’s licensure application.
To get the needed CPE credits each year, you may take both online and in-person courses. These courses are available to NACPB members. The methods to apply for and gain licensure is the same as the AIPB after you’ve decided on a route. The five stages to getting your Certified Public Bookkeeper license are as follows:
Send in your application
You must give your contact information, such as your postal address, email address, and phone number, in order to complete the application. You must also offer a list of customers and/or employers for whom you have worked as an employee or as a contractor. The name and location of the client/employer, as well as the total number of hours worked, will be provided.
Unlike the AIPB certification, you can’t apply for CPB licensing until you’ve met all of the other prerequisites (i.e., passed the exam, completed the education or experience requirements, and agreed to the CPB code of professional conduct).
Work experience
Certification applicants seeking the work experience route must have two years (4,000 hours) of bookkeeping or accounting experience.
Each client/employer you list in your application will be required to submit a one-page form as confirmation of your work experience. There are a few questions on this form that may be responded to with a “yes” or “no,” and then it asks for the name of the employer/client, address, phone number, dates you were hired, position, the total number of hours worked, and the signature of the client/employer. If necessary, there is also room for further remarks.
Statement of education
Copies of other organizations’ certifications must be presented. You must also produce an official transcript(s) demonstrating that you have completed the educational requirements.
Certification Exam Success
The NACPB administers a four-part bookkeeper certification test, similar to the AIPB exam. The subject, duration of time, fee, and venue for each component of the certification test are listed below:
NACPB’s Bookkeepers License Exam
The test is open book in all four sections. However, you must make an appointment with ATU to take the test on a certain day and time. You will get the test through email 24 hours before your planned exam time after you have completed this step. The test will take two hours to complete.
You may repeat any portion of the test for $50 (members) or $75 (nonmembers) if you don’t pass one or more components.
Follow the Code of Ethics
You must sign and agree to the National Association of Certified Accounting Paraprofessionals’ code of professional behavior. It covers the bookkeeper’s obligations to customers, employers, the general public, and other bookkeepers and accountants.
Requirements for Continuing Education
Each year, you must complete 24 hours of continuing professional education to keep your certification. You will lose your certification if this condition is not satisfied. As a NACPB member, you have access to free educational courses that you may use to fulfill this need. You will also get discounts on any courses provided throughout the year.
Options for NACPB Certification Exam Preparation
The NACPB provides a number of resources to assist you in studying for the certification test. There are four choices available to you below:
Exam Practice
Take the free practice test to determine whether you can pass the exam based on your previous job experience and knowledge. You’re ready to take the certification test if you pass! If not, you’ll at least have a better sense of what aspects of your study you need to concentrate on.
Videos
If you’re a member of the NACPB, you’ll get access to on-demand videos for each of the exam’s four sections: Accounting Principles, Accounting Fundamentals, Payroll Fundamentals, and QuickBooks Fundamentals. If you’ve completed the practice test and identified the areas where you need to work, I suggest paying the $100 membership price to have immediate access to these complementary videos.
Preparation for Certification Exams
Each of the four segments of the certification test has its own study course. A pre-assessment exam, on-demand video training, a textbook, workbook, and a number of additional study resources are included in each course. You also get access to an instructor who can answer any questions you may have.
The course costs $1,596 for members and $1,996 for nonmembers in total. The cost for each portion of the test is summarized here.
3. Traditional and online college courses
During our study, we discovered that there are a lot of other bookkeeping courses and certification programs available. We chose two of the top programs: UCLA Extension’s Bookkeeping Specialization program and United States Career Institutes’ Bookkeeping Specialist program.
When you finish these courses, unlike the AIPB and NACPB certificates, you will not get any letters (CB or CPB) to place behind your name. You will, however, acquire a certificate from a recognized university demonstrating that you have the knowledge and abilities expected of a bookkeeper.
UCLA Extension offers a bookkeeping specialization.
UCLA Extension offers a Bookkeeping Specialization program. It is aimed at experienced bookkeepers, office managers, and individuals interested in transitioning to a career in bookkeeping or accounting. While this course is given by UCLA in Westwood, California, courses are available both online and on-campus.
I teach a handful of the programs offered in this program as an Adjunct Instructor at UCLA. The program’s overall cost is $3,635. You will earn a certificate upon completion of all courses in the program if you maintain a GPA of 2.5 or above in each subject.
The following is a list of the courses provided by UCLA Extension as part of this bookkeeper specialized program:
- Essentials of Bookkeeping and Accounting I
- Essentials of Bookkeeping and Accounting II
- Accounting and Payroll Taxes
- Accounting software such as QuickBooks or QuickBooks Online
U.S. Career Institute, Bookkeeping Specialist
The United States Career Institute is an online educational institution that offers low-cost, real-world training tailored to distance learners. They provide a Bookkeeping Specialist certificate that covers the following topics, but is not limited to:
- Accounts Receivable (A/R)
- Accounts Payable
- Bookkeeping on the Computer
- Statements of Financial Position
- The Books Are Closed
The curriculum costs $589 in total, and you may do it at your own leisure. If you have any questions, you may contact your teacher by email or phone.
4. Certification Programs for Accounting Software
The next step after completing a bookkeeper certification program is to get certified in accounting software. There is no need to earn a bookkeeping certification if you are a CPA. However, you must get certification in accounting software in order to service your small company clientele. You will have a better grasp of how to utilize the program and be able to serve your small company customers if you become certified.
QuickBooks ProAdvisor
QuickBooks is the most widely used accounting software for small companies. I’ve been a Certified QuickBooks ProAdvisor for ten years, and you should earn this certification if you don’t get any other software certifications. A 55-question test must be passed in order to get the certification. The test is divided into seven portions, with each subject requiring an 80 percent or higher mark to proceed to the next.
This program comes with a number of advantages, including a ProAdvisor accreditation emblem that you may use on any marketing materials (e.g., your business cards and website). You’ll also be included on the Discover-a-ProAdvisor website, making it easier for small companies looking for a QuickBooks Pro to find you.
Advisor for Xero
Xero is a fantastic QuickBooks substitute. It’s a cloud-based accounting program that’s been giving QuickBooks Online a run for its money in recent years. A four-hour certification course is required to get the certification.
As a certified Xero Advisor, you will be given an account manager to answer questions, get free software, and be included in the Xero advisor directory so that prospective new customers may discover you.
Zoho Books
Zoho Books is one of a number of fantastic Zoho applications. You just need to attend a one-hour webinar to become a certified Zoho Pro. As a Zoho Books Advisor, you’ll get free software, on-demand tech assistance, and placement in their Zoho Advisor directory where small companies looking for help may discover you!
When Should You Consider Becoming a Certified Public Accountant (CPA)?
I highly advise you to take the CPA test if you have a bachelor’s degree in accounting. While you should verify your state’s minimal educational requirements, you will most likely have the bulk (if not all) of the coursework required to take the CPA test.
As a CPA, I must acknowledge that the CPA test is quite difficult—some even compare it to the bar exam! However, having those three letters behind my name has enabled me to significantly enhance my earning potential above what I would have earned with only a bachelor’s degree—not to mention the employment options I’ve had!
If you’re thinking about taking the CPA test, Sharon Onuma, a recent graduate, has a wonderful video on How to Pass the CPA Exam. Many of the ideas she gives in this video are similar to what I did to pass the test back in the “pen and paper days,” as she calls it. The CPA test, like most others, is now entirely automated.
Conclusion
We’ve done the research to bring you several excellent bookkeeper certification programs, and now it’s up to you to choose one. Choose the NACPB certification if you have an associate’s or bachelor’s degree in accounting or a minimum of two years (4,000 hours) experience working as a bookkeeper.
If you don’t have any experience or education in accounting, however, you should pursue the AIPB certification. You may gain the job experience you need while preparing for the test since there is no minimum education requirement and you have up to three years (after passing the exam) to satisfy the work experience requirement. You must also know how much to charge your customers, regardless of the form of certification you pick.
