Compare between accounting and bookkeeping.
The major differences between accounting and bookkeeping are as follows −
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.
Published on 24-Jul-2020 10:39:13