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Bookkeeping is the process of recording, in chronological order, the daily transactions of a business entity. It forms part of the accounting information system.
On the other hand, accounting is an information system – includes the process of recording, classifying, summarizing, reporting, analyzing and interpreting the financial condition and performance of a business – in order to communicate it to stakeholders for business decision making.
Bookkeeping is responsible for the recording of financial transactions whereas Accounting is the act of interpreting, classifying, analyzing, reporting and summarizing financial data. The biggest difference between accounting and bookkeeping is that accounting involves interpreting and analyzing data and bookkeeping does not.
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