Can you differentiate between Book Keeping and Accounting?

Il y a de légères différences entre la comptabilité et la tenue des livres et il s'agit principalement de différences techniques. Pour comprendre ce qui sépare la comptabilité.

Keeping a book is easyer than to stay up to date with an accounting wich has way more work on a system to keep it safe and officily updated.

Filling things in order speaks on book keeping. Accounting is a process of work which involves financial report which involves an honest work.

Bookkeeping and accounting are both essential business functions required for all businesses. Bookkeeping is responsible for the recording of financial transactions. Accounting is responsible for interpreting, classifying, analyzing, reporting and summarizing financial data.

Bookkeeping is the process of recording daily transactions: Posting debits and credits, Producing invoices, Completing payroll Accounting is a high-level process that uses financial information compiled by a bookkeeper or business owner, and produces financial models using that information; Preparing company financial statements, Analyzing costs of operations, completing income tax returns, etc.

Key Differences Between Bookkeeping and Accounting

The points given below are substantial, so faras the difference between bookkeeping and accounting is concerned:

1. Bookkeeping is keeping proper records of the financial transactions of an entity. Accounting is recording, measuring, grouping, summarising, evaluating and reporting of transactions of the entity which are in monetary terms.
2. The task of Bookkeeping is performed by a bookkeeper whereas the accountant performs the task of Accounting.
3. Financial Statement forms a part of the accounting process but not the bookkeeping process.
4. Accounting records are taken as a base for taking managerial decision unlike bookkeeping records, in which decision making is difficult.
5. Bookkeeping is the first step to Accounting.
6. Bookkeeping does not disclose the correct financial position however for purpose accounting helps the users in showing the true and fair view of the financial status and profitability of an organisation.