Occupational Outlook:
Bookkeeping, Accounting, and Auditing Clerks
Significant Points
- Bookkeeping, accounting, and auditing clerks held more
than 2 million jobs in 2004 and are employed in every industry.
- Employment is projected to grow more slowly than
average as the spread of office automation lifts worker productivity.
- The large size of this occupation ensures plentiful job
openings, including many opportunities for temporary and part-time work;
those who can carry out a wider range of bookkeeping and accounting
activities will be in greater demand than specialized clerks.
Nature of the Work
Bookkeeping,
accounting, and auditing clerks are an organization’s financial recordkeepers. They update and maintain one or more
accounting records, including those which tabulate expenditures, receipts,
accounts payable and receivable, and profit and loss. They represent a wide
range of skills and knowledge from full-charge bookkeepers who can maintain an
entire company’s books to accounting clerks who handle specific accounts. All
of these clerks make numerous computations each day and increasingly must be
comfortable using computers to calculate and record data.
In small establishments, bookkeeping
clerks handle all financial transactions and recordkeeping. They record all
transactions, post debits and credits, produce financial statements, and prepare
reports and summaries for supervisors and managers. Bookkeepers also prepare
bank deposits by compiling data from cashiers, verifying and balancing
receipts, and sending cash, checks, or other forms of payment to the bank. They
also may handle payroll, make purchases, prepare invoices, and keep track of
overdue accounts.
In large offices and
accounting departments, accounting clerks have more specialized tasks.
Their titles, such as accounts payable clerk or accounts receivable clerk,
often reflect the type of accounting they do. In addition, their
responsibilities vary by level of experience. Entry-level accounting clerks
post details of transactions, total accounts, and compute interest charges.
They also may monitor loans and accounts to ensure that payments are up to
date.
More advanced accounting
clerks may total, balance, and reconcile billing vouchers; ensure the
completeness and accuracy of data on accounts; and code documents according to
company procedures. These workers post transactions in journals and on computer
files and update the files when needed. Senior clerks also review computer
printouts against manually maintained journals and make necessary corrections.
They may review invoices and statements to ensure that all the information appearing
on them is accurate and complete, and they may reconcile computer reports with
operating reports.
Auditing clerks verify records of transactions
posted by other workers. They check figures, postings, and documents to ensure
that they are correct, mathematically accurate, and properly coded. They also
correct or note errors for accountants or other workers to adjust.
As organizations continue
to computerize their financial records, many bookkeeping, accounting, and
auditing clerks are using specialized accounting software on personal
computers. With manual posting to general ledgers becoming obsolete, these
clerks increasingly are posting charges to accounts on computer spreadsheets
and databases. They now enter information from receipts or bills into computers,
and the information is then stored either electronically or as computer
printouts (or both). The widespread use of computers also has enabled
bookkeeping, accounting, and auditing clerks to take on additional
responsibilities, such as payroll, procurement, and billing. Many of these
functions require these clerks to write letters, make phone calls to customers
or clients, and interact with colleagues. Therefore, good communication skills
are becoming increasingly important in the occupation.
Working Conditions
Bookkeeping,
accounting, and auditing clerks work in an office environment. They may
experience eye and muscle strain, backaches, headaches, and repetitive motion
injuries as a result of using computers on a daily basis. Clerks may have to sit
for extended periods while reviewing detailed data.
Many bookkeeping,
accounting, and auditing clerks work regular business hours and a standard
40-hour week. A substantial number work just part time. Full-time and part-time
clerks may work some evenings and weekends. Bookkeeping, accounting, and
auditing clerks may work longer hours to meet deadlines at the end of the
fiscal year, during tax time, or when monthly or yearly accounting audits are
performed. Those who work in hotels, restaurants, and stores may put in
overtime during peak holiday and vacation seasons.
Training, Other
Qualifications, and Advancement
Most
bookkeeping, accounting, and auditing clerks are required to have a high school
degree at a minimum. However, having some college is increasingly important and
an associate degree in business or accounting is required for some positions.
Although a college degree is rarely required, graduates may accept bookkeeping,
accounting, and auditing clerk positions to get into a particular company or to
enter the accounting or finance field with the hope of eventually being
promoted to professional or managerial positions.
Experience in a related job
and working in an office environment also is recommended. Employers prefer
workers who are computer-literate; knowledge of word processing and spreadsheet
software is especially valuable.
Once hired, bookkeeping,
accounting, and auditing clerks usually receive on-the-job training. Under the
guidance of a supervisor or other senior worker, new employees learn company
procedures. Some formal classroom training also may be necessary, such as
training in specific computer software. Bookkeeping, accounting, and auditing
clerks must be careful, orderly, and detail-oriented in order to avoid making
errors and to recognize errors made by others. These workers also should be
discreet and trustworthy, because they frequently come in contact with
confidential material. In addition, all bookkeeping, accounting, and auditing
clerks should have a strong aptitude for numbers.
Bookkeepers, particularly
those who handle all the recordkeeping for companies, may find it beneficial to
become certified. The Certified Bookkeeper designation, awarded by the American
Institute of Professional Bookkeepers, assures employers that individuals have
the skills and knowledge required to carry out all the bookkeeping and
accounting functions up through the adjusted trial balance, including payroll
functions. For certification, candidates must have at least 2 years of
bookkeeping experience, pass three tests, and adhere to a code of ethics. More
than 100 colleges and universities offer a preparatory course for certification
and another 150 offer a course online. The
Universal
Accounting
Center
offers the
Professional Bookkeeper designation. Bookkeeping, accounting, and auditing
clerks usually advance by taking on more duties in the same occupation for
higher pay or by transferring to a closely related occupation. Most companies
fill office and administrative support supervisory and managerial positions by
promoting individuals from within their organizations, so clerks who acquire
additional skills, experience, and training improve their advancement
opportunities. With appropriate experience and education, some bookkeeping,
accounting, and auditing clerks may become accountants or auditors.
Employment
Bookkeeping,
accounting, and auditing clerks held more than 2 million jobs in 2004. They are
found in all industries and at all levels of government. Local government and
the accounting, tax preparation, bookkeeping, and payroll services industry are
among the individual industries employing the largest numbers of these clerks.
A growing number work for employment services firms, the result of an increase
in outsourcing of this occupation. About 1 out of 4 bookkeeping, accounting,
and auditing clerks worked part time in 2004.
Job Outlook
Employment of bookkeeping,
accounting, and auditing clerks is projected to grow more slowly than average for all
occupations through 2014. More job openings will stem from replacement needs
than from job growth. Each year, numerous jobs will become available as these
clerks transfer to other occupations or leave the labor force. The large size
of this occupation ensures plentiful job openings, including many opportunities
for temporary and part-time work.
Although a growing economy
will result in more financial transactions and other activities that require
these clerical workers, the continuing spread of office automation will lift
worker productivity and contribute to the slower-than-average increase in
employment. In addition, organizations of all sizes will continue to downsize
and consolidate various recordkeeping functions, thus reducing the demand for bookkeeping,
accounting, and auditing clerks. Furthermore, some work performed by these
workers will be outsourced to lower-wage foreign countries. Those who can carry
out a wider range of bookkeeping and accounting activities will be in greater
demand than specialized clerks. Demand for full-charge bookkeepers is expected
to increase, because they are called upon to do much of the work of
accountants, as well as perform a wider variety of financial transactions, from
payroll to billing. Certified bookkeepers and those with several years of
accounting or bookkeeper experience will have the best job prospects.
Earnings
In May
2004, the median wage and salary annual earnings of bookkeeping, accounting,
and auditing clerks were $28,570. The middle half of the occupation earned
between $22,960 and $35,450. The top 10 percent of bookkeeping, accounting, and
auditing clerks more than $43,570, and the bottom 10 percent earned less than
$18,580.
Related Occupations
Bookkeeping,
accounting, and auditing clerks work with financial records. Other clerks who
perform similar duties include bill and account collectors; billing and posting
clerks and machine operators; brokerage clerks; credit authorizers, checkers,
and clerks; payroll and timekeeping clerks; procurement clerks; and tellers.
Source: U.S.
Department of Labor, Bureau of Labor Statistics
Billing clerks review purchase
orders, sales tickets, hospital records, or charge slips to calculate the total
amount due from a customer. They must take into account any applicable
discounts, special rates, or credit terms. A billing clerk for a trucking
company often needs to consult a rate book to determine shipping costs of
machine parts, for example. A hospital’s billing clerk may need to contact an
insurance company to determine what items will be reimbursed and for how much.
In accounting, law, consulting, and similar firms, billing clerks calculate
client fees based on the actual time required to perform the task. They keep
track of the accumulated hours and dollar amounts to charge to each job, the
type of job performed for a customer, and the percentage of work completed.
After billing clerks review
all necessary information, they compute the charges, using calculators or
computers. They then prepare itemized statements, bills, or invoices used for
billing and recordkeeping purposes. In one organization, the clerk might prepare
a bill containing the amount due and the date and type of service; in another,
the clerk would produce a detailed invoice with codes for all goods and
services provided. This latter form might list the items sold, the terms of
credit, the date of shipment or the dates services were provided, a
salesperson’s or doctor’s identification, if necessary, and the sales total.
Computers and specialized
billing software allow many clerks to calculate charges and prepare bills in one
step. Computer packages prompt clerks to enter data from handwritten forms, and
to manipulate the necessary entries of quantities, labor, and rates to be
charged. Billing clerks verify the entry of information and check for errors
before the computer prints the bill. After the bills are printed, billing
clerks check them again for accuracy. Computer software also allows bills to be
sent electronically if both the biller and the
customer prefer not to use paper copies; this, coupled with the prevalence of
electronic payment options, allows a completely paperless billing process. In
offices that are not automated, billing machine operators run off the
bill on a billing machine to send to the customer.
In addition to producing
invoices, billing clerks may be asked to handle follow-up questions from
customers and resolve any discrepancies or errors. Finally, all changes must be
entered in the accounting records.
Working Conditions
Billing
clerks typically are employed in an office environment, although a growing
number—particularly medical billers—work at home.
Most billing clerks work 40 hours per week during regular business hours,
though about one in seven works part time. Because billing clerks use computers
on a daily basis, workers may have to sit for extended periods and also may
experience eye and muscle strain, backaches, headaches, and repetitive motion
injuries.
Training, Other
Qualifications, and Advancement
Most
billing clerks need at least a high school diploma. However, many employers
prefer to hire workers who have completed some college courses or a degree.
Workers with an associate or bachelor’s degree are likely to start at higher
salaries and advance more easily than those without degrees. Employers also
seek workers who are computer literate, and in particular those who have
experience with billing software programs.
Billing clerks usually
receive on-the-job training from their supervisor or some other senior worker.
Some formal classroom training also may be necessary, such as training in the
specific computer software used by the company. Workers must be careful,
orderly, and detail oriented with an aptitude for working with numbers in order
to avoid making errors and to recognize errors made by others. Workers also
should be discreet and trustworthy, because they frequently come in contact
with confidential material. Medical billers in
particular need to understand and follow the regulations of the Health
Insurance Portability and Accountability Act (HIPAA), which were enacted to
maintain the confidentiality of patient medical records.
A number of community and
career colleges offer certificate programs in medical billing. Courses
typically cover basic biology, anatomy, and physiology in addition to training
on coding and computer billing software.
Billing clerks usually
advance by taking on more duties in the same occupation for higher pay or by
transferring to a closely related occupation. Most companies fill office and
administrative support supervisory and managerial positions by promoting
individuals from within the organization. Workers who acquire additional
skills, experience, and training improve their advancement opportunities. With
appropriate experience and education, some billing clerks may become
accountants, human resource specialists, or buyers.
Employment
In 2004,
billing and posting clerks and machine operators held about 523,000 jobs.
Although all industries employ billing clerks, the health care industry employs
the most, about a third of all billing clerks. The wholesale and retail trade
industries also employ a large number of billing clerks. Third-party billing
companies—companies that provide billing services for other companies—are
employing a growing number of billing clerks. Industries that are providing
this service are the accounting, tax preparation, bookkeeping, and payroll
services industry and the office administrative and business support services
industries. These industries currently employ around 5 percent of the
occupation, although a portion of clerks in these industries are performing the
function on their own accounts. Another 3 percent—mostly medical billers—were self employed.
Job Outlook
Employment
of billing and posting clerks and machine operators is expected to grow more
slowly than the average for all occupations through the year 2014. Automated
and electronic billing processes are greatly simplifying billing and allowing
companies to send out bills faster without hiring additional workers. In
addition, as the billing process becomes simplified, other people, particularly
accounting and bookkeeping clerks, are taking on the billing function. Strong
growth in the health care industry, which employs many billing clerks due to
the complicated nature of medical billing, will generate some jobs for billing
clerks in the future. Although growth will be limited, many job openings will
occur as workers transfer to other occupations or leave the labor force.
Turnover in the occupation is relatively high, characteristic of an entry-level
occupation that typically requires only a high school diploma.
Employment growth will
occur in the expanding health care industries, but growth will be limited as
more hospitals and physicians’ offices use contract billing companies. Contract
billing companies generally have much more sophisticated technology and
software, enabling them to produce more bills per person. In all industries,
including health care, the billing function is becoming increasingly automated
and invoices and statements are automatically generated upon delivery of the
service or shipment of goods. Bills also will increasingly be delivered
electronically over the Internet, eliminating the production and mailing of
paper bills.
Earnings
Median hourly earnings of
billing and posting clerks and machine operators were $13.00 in May 2004. The
middle 50 percent earned between $10.76 and $15.86. The lowest 10 percent
earned less than $9.12, and the highest 10 percent earned more than $18.88.
Related Positions
Billing
clerks process and send records of transactions for payment; other occupations
with similar responsibilities include payroll and timekeeping clerks;
bookkeeping, auditing, and accounting clerks; tellers; and order clerks.
Source: U.S.
Department of Labor, Bureau of Labor Statistics |
