Explore jobs
Find specific jobs
Explore careers
Explore professions
Best companies
Explore companies
The differences between tax preparers and bookkeepers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a tax preparer has an average salary of $51,020, which is higher than the $40,337 average annual salary of a bookkeeper.
The top three skills for a tax preparer include customer service, good communication and exceptional client. The most important skills for a bookkeeper are payroll tax returns, customer service, and reconciliations.
| Tax Preparer | Bookkeeper | |
| Yearly salary | $51,020 | $40,337 |
| Hourly rate | $24.53 | $19.39 |
| Growth rate | - | -5% |
| Number of jobs | 41,736 | 38,481 |
| Job satisfaction | 3 | 5 |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 46% |
| Average age | 47 | 51 |
| Years of experience | - | 6 |
A tax preparer is responsible for preparing and processing the tax obligations of an organization. Tax preparers' duties include calculating tax returns, reviewing financial statements and make adjustments as needed, analyzing deductible expenses and credits, and adhering to the tax regulations and legislation procedures at all times. A tax preparer must have excellent knowledge of the tax processes and timely updated with the recent changes and updates within the financial industry. Tax preparers should have impeccable analytical and critical thinking skills to manage account statements for business and individual clients.
Bookkeepers are employees who are in charge of the company's general ledger. They are well-versed in basic accounting principles, and they apply these in their work. Bookkeepers manage the entry of items in the general ledger, assign items into their proper categories, and ensure that the entries are balanced. They also act as auditors by checking the accuracy and veracity of the receipts or vouchers in their possession before entering them into the system. Bookkeepers ensure that their files are up to date and free of errors.
Tax preparers and bookkeepers have different pay scales, as shown below.
| Tax Preparer | Bookkeeper | |
| Average salary | $51,020 | $40,337 |
| Salary range | Between $30,000 And $85,000 | Between $30,000 And $52,000 |
| Highest paying City | San Francisco, CA | Washington, DC |
| Highest paying state | Rhode Island | New York |
| Best paying company | Goldman Sachs | NTT Data International L.L.C. |
| Best paying industry | Finance | Manufacturing |
There are a few differences between a tax preparer and a bookkeeper in terms of educational background:
| Tax Preparer | Bookkeeper | |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 46% |
| Most common major | Accounting | Accounting |
| Most common college | University of Southern California | University of Pennsylvania |
Here are the differences between tax preparers' and bookkeepers' demographics:
| Tax Preparer | Bookkeeper | |
| Average age | 47 | 51 |
| Gender ratio | Male, 28.2% Female, 71.8% | Male, 15.4% Female, 84.6% |
| Race ratio | Black or African American, 10.9% Unknown, 4.1% Hispanic or Latino, 18.1% Asian, 10.3% White, 56.1% American Indian and Alaska Native, 0.6% | Black or African American, 6.8% Unknown, 4.0% Hispanic or Latino, 14.4% Asian, 6.6% White, 67.6% American Indian and Alaska Native, 0.6% |
| LGBT Percentage | 8% | 7% |