Compare between accounting and bookkeeping.

Banking & FinanceManagementCompanies/Organisations

The major differences between accounting and bookkeeping are as follows −

AccountingBookkeeping
  • Includes summarising, analysing, interpreting and communicating.

  • Language of business.

  • Balance sheet, profit and loss account and cash flow statements.

  • Financial accounting, cost accounting, management accounting, human resource accounting, social responsibility accounting.

  • Helps in taking critical decisions based on information.

  • Plays a part in preparing financial statements.

  • Requires analysis to interpret and compile the data.

  • Seen by certified public accountant (CPA).

  • Management can help important decision based on data.

  • Require special skills because of its complex nature.

  • Includes identifying, measuring, recording and classifying.

  • Basis of accounting.

  • Journal, ledger and trial balance

  • Main objective is to record all financial transactions in systematically.

  • Not a part of preparing financial statements.

  • Doesn’t require any analysis.

  • Single entry and double entry are types of bookkeeping.

  • Seen by accountants.

  • Management can’t take decisions based on data.

  • Require minimum skills because of its simple nature.

raja
Published on 24-Jul-2020 10:39:13
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