Are you someone interested in manipulating numbers and creating meaningful information out of them? Or do you have a knack for entering the world of limitless boundaries in accounting and finance?
If so, this blog is for you!
We have compiled this complete guide to help you understand the benefits and enrollment process of a certified bookkeeping course. Remember, your financial success will start with education. Here, we aim to provide you with the best accounting knowledge to save taxes for multinational wealth.
WHAT IS BOOKKEEPING?
Bookkeeping records financial transactions and is part of the accounting process in businesses and other organizations. It involves preparing source documents for all business transactions, operations, and events. Transactions include purchases, sales, receipts, and payments by individuals, organizations, and corporations.
There are two basic standards of bookkeeping:
- Single-entry bookkeeping:
This method of bookkeeping records every business transaction at a single time. - Double-entry bookkeeping:
It is an accounting system where every transaction is recorded in two accounts: a debit to one account and a credit to another.
For instance, if a business takes out a $5,000 loan, the cash (asset) account is debited by $5,000, and the outstanding debt (liability) account is credited by $5,000.
KINDS OF BOOKKEEPING CERTIFICATIONS:
The two major certifications in bookkeeping are the Certified Bookkeeper (CB) designation and the Certified Public Bookkeeper (CPB) title. Let’s see what they both have in common and how they differ.
- Certified Bookkeeper (CB):
- The Certified Bookkeeper (CB) designation is earned through assistance and enrollment with the American Institute Of Professional Bookkeepers (AIPB).
- There’s no need for any prior formal education to get this certification.
- This certification represents your skills and expertise in financial measurements, accounting cycles, and financial management.
- Certified Public Bookkeeper (CPB):
- The Certified Public Bookkeeper (CPB) title is earned through assistance and enrollment in the National Association of Certified Public Bookkeepers (NACPB).
- A Bachelor’s degree in Accounting, Finance, or any related field is necessary to earn this title.
- In this role, you handle the accounting aspects of daily life and prepare reports using financial data and statements.
HOW LONG DOES IT TAKE TO GET THE BOOKKEEPING CERTIFICATIONS?
For any of the bookkeeping certifications you’ve chosen, it is mandatory to have experience in Accounting. Here’s a further explanation:
- NACPB:
- If you want to become a Certified Public Bookkeeper (CPB), you must have at least one year or 2080 hours of experience in the respective field.
- The license you’ll get will only last a year, so you’ll have to demonstrate that you have all the necessary documents, education, and experience.
- Payment of the annual membership fee is also required.
- CPB credentials require 24 hours of continuing education per year of licensure.
- AIPB:
- If you choose the Certified Bookkeeper title/certification, you must have at least 3000 hours or almost 2 years of experience in the respective field.
- To maintain the CB credential, you must fulfill 60 continuing education credits every three years.
HOW MUCH DOES IT COST TO GET EACH CERTIFICATION?
Well, both CPB and CB titles/certifications have different costs and application procedures. As mentioned earlier, you are supposed to pay an annual fee. In addition to that, an extra fee is also counted for the courses you take to prepare for your exams. There are plenty of online bookkeeping courses in Canada that help you score great in your exams, providing you with enormous valuable information.
- Total cost of CPB certification:
In order to get your CPB certification, you are required to pass 4 exams, and each exam has its registration fee. Along with this fee, you’ll pay for any courses in bookkeeping and payroll you’ll take for preparation.
It is recommended to get a membership with the organization you choose.
If you purchase the exam prep materials as a bundle, they cost $1,276 in total for members and $1,596 for nonmembers. You must also pay an application fee of $100. Annual renewal applications cost $25 for NACPB members and $50 for nonmembers. Membership also gives you access to resources that can help you prepare to become a CPB.
- Total cost of CB certification:
If you choose to go with the CB certification, you must pay $25 for your membership fee and $60 for non-members.
AIPB charges $254 for members and $314 for non-members for preparatory courses and workbooks. The first two parts of AIPB’s four-part test cost $100 each. The final two parts of the exam are free and included in the workbooks.
The organization also offers one-, two-, and three-year memberships at discounted prices.
If you cannot afford to get your hands on the workbooks or any preparation material, you can register for bookkeeping courses online in Ontario at relatively affordable prices.
WHAT’S NEXT?
Bookkeeping is an interesting and highly demanding field of expertise in accounting and finance. It not only has a promising future but also presents plenty of opportunities ahead.
If you’ve decided to become a certified bookkeeper, it’s essential to take a series of preparatory courses before jumping straight into the exam. Prior bookkeeping experience does not exempt you from these courses. Completing these courses and workbooks can significantly help you prepare for and pass your bookkeeping exam.
You can also access these courses online from our certified professional bookkeepers. As a leading accounting and finance agency in Mississauga, Ontario, we are proud to offer certified bookkeeper courses online in Canada.
For more insights into the industry’s future, check out our blogs on Expected Future Trends in the Canadian Accounting & Finance Industry 2024 and Understanding Tax Implications for Small Businesses in Canada.