What is the difference between accounting and bookkeeping?

Bookkeepers perform a critical function for the firms and organizations they serve. Regularly challenged to maintain precise and
accurate records, bookkeepers produce the vital reports that keep management up to date on the financial condition of their
company.
Bookkeepers are responsible for maintaining the "business checkbook", much like a personal checkbook. They record routine
money transactions like customer payments into a "cash receipts journal" and checks to vendors into a "cash disbursement
journal." They also process payroll. At month end they transfer or "post" the "journal" totals to the "general ledger" in preparation for
financial statements prepared by the accountant.
Accountants are responsible for the design and management of the financial systems that bookkeepers use. They prepare monthly
financial statements and tax returns at year end. Accountants may also prepare budgets for management and loan proposals for
bankers; and perform cost analysis for the company's products or services.
Trust, reliability and confidentiality head the list of qualities that employers look for when selecting and promoting Certified
Bookkeepers. Strong organization and communication skills are also important. Not only are bookkeepers challenged to record
routine money transactions, to reconcile accounts and to locate misguided transations, they also must be able to paint a picture--
both verbally and on paper--of all the activities within their assigned area of responsibility.

understand The Difference Between Accounting And Bookkeeping

ACCOUNTING:

is a four stage process of recording, classifying, summarizing and the interpretation of the financial statements.

The four stage process are defined below:

Recording- transactions being recorded in the books of the business

Classifying- sorting and categorizing into meaningful and orderly types or manners

Summarizing- the accounting data are summarized

Interpreting- financial data are analyzed and used to assist decision making

BOOKKEEPING:

Bookkeeping is a part of Accounting. It is merely a mechanical aspect of recording, classifying and summarizing transaction.

Therefore, keeping the books of accounts is always the theme in bookkeeping. The finer aspect of interpreting all these data into
information for management to act upon is excluded.

What is the Difference Between Bookkeeping and Accounting?

What is the difference between bookkeeping, accounting, and accountancy? When someone says they are an accountant, are they
really a bookkeeper? Does it really matter?

Bookkeeping

Bookkeeping is the process of systematically recording the financial transactions of a business, so as to show how the transactions
relate to each other. Bookkeeping is largely a mechanical process and does not involve any analysis of the financial transactions,
but rather the recording of them.

Traditionally, the records were kept in a book, hence the name bookkeeping. These days, bookkeeping is normally performed using
a bookkeeping software package, but the names of the books (daybook, cashbook, journal, and ledger) are still used.

A bookkeeper's function is primarily one of recording transactions in the journal and posting to the ledger, and is sometimes
referred to as an accounts clerk.

There are two types of bookkeeping: single entry and double-entry. In single entry bookkeeping, the record of each transaction is
carried to either the debit or credit column of a single account. In double-entry bookkeeping, two entries of each transaction are
carried to the ledger: one to the debit side, and one to the credit side, of the corresponding account. This is so the two entries can
be used to check each other.

Accounting

Accounting is the systematic recording, reporting, and analysis of financial transactions of a business. As bookkeeping involves
making a financial record of business transactions, it is true to say that the role of bookkeeping is encompassed within the scope of
accounting, and the bookkeeping system used by a business would form part of the accounting system.
Accounting also includes the preparation of statements concerning assets, liabilities and the operating results of a business.

Accountancy is the occupation related to accounting, and an accountant is the person who does, or at least is responsible for, the
work. Accountants often specialize in a particular area of accounting such as taxes, auditing, or management.

In a small company, all of the bookkeeping and accounting tasks may well be performed by a single person. In this situation, that
person would normally be referred to as an accountant.

The Difference Between Accounting and Bookkeeping

Bookkeepers perform a critical function for the firms and organizations they serve. Regularly challenged to maintain precise and
accurate records, bookkeepers produce the vital reports that keep management up to date on the financial condition of their
company.

Bookkeepers are responsible for maintaining the "business checkbook", much like a personal checkbook. They record routine
money transactions like customer payments into a "cash receipts journal" and checks to vendors into a "cash disbursement
journal." They also process payroll. At month end they transfer or "post" the "journal" totals to the "general ledger" in preparation for
financial statements prepared by the accountant.

Accountants are responsible for the design and management of the financial systems that bookkeepers use. They prepare monthly
financial statements and tax returns at year end. Accountants may also prepare budgets for management and loan proposals for
bankers; they may perform cost analysis for the company's products or services.

Trust, reliability and confidentiality head the list of qualities that employers look for when selecting and promoting Certified
Bookkeepers. Strong organization and communication skills are also important. Not only are bookkeepers challenged to record
routine money transactions, to reconcile accounts and to locate misguided transactions, they also must be able to paint a picture--
both verbally and on paper--of all the activities within their assigned area of responsibility.

Elliott Bookkeeping School offers a unique educational opportunity--short-term, affordable courses that teach all of the important
skills necessary for a successful career as a Certified Bookkeeper. We invite you to contact us for more information.

Accounting vs Bookkeeping

Accounting vs. Bookkeeping

 Bookkeeping- is the tedious part of the financial affairs of a business. It involves the systematic recording of the amounts,
dates and sources of each revenue and expense transaction.  Bookkeeping is concerned with the systems that enable the
financial information to be extracted in the transactions that generate revenue and incur expense in the business. 

 Accounting - is the bigger picture. It is the system that keeps track of the data, including people, and records the
transaction’s history, as well as taking the information that is obtained through the bookkeeping process and using that
information to analyse the results of the business.  Accounting is the system that provides the reports and information
needed for management to make decisions as to the direction of the business, as well as issues such as taxation, Sales
Tax etc.

Some say you should think of accounting as a giant sifter and of bookkeeping as the process of pouring the stuff into the
sifter.  Things get stirred around and you get the information from the sifter after it’s been stirred, in order to run the
business efficiently and profitably.

Difference between an Accountant and a Bookkeeper

1. Bookkeeper
A Bookkeeper is involved with the systematic recording of the financial transactions of your business and the person that
is generally responsible for this type of work is known as a bookkeeper. A bookkeeper may not be a fully qualified
accountant but it may be someone who has accounting experience in an accountancy office or has basic bookkeeping
experience or training. In general, a bookkeeper is concerned with making sure that the transactions of the business are
properly recorded and that the data required is extracted in a form ready for an accountant to take for looking at the more
complex issues such as taxation, budgeting, forward planning and financial reporting.

2. Accountant
An accountant however usually is someone who is qualified in accountancy, through the completion of a university degree
or other accountancy qualification. The accountant’s time is best used to analyse the financial data from the business by
the bookkeeper. From the analysis of this data decisions can be made as to the direction the business needs to follow.
The bookkeeper is therefore responsible for the initial stages of the business transactions and the accountant comes in
after that to determine the direction of the business based on the results achieved.
 3. Both are important
Both bookkeepers and accountants are very important to the business. Knowing the difference between them can assist in
making sure you get the best information. It could also save your business thousands of dollars a year in fees as well as
avoiding business disasters.

What is the Difference between Bookkeeping and Accounting?

The two overlap: Bookkeeping is part of accounting. It is the recording of the day to day transactions of a business.

Therefore, bookkeeping can play an important role in the efficient running of a business: A business needs to pay its bills and it
must therefore keep a record of those bills so that the correct amounts can be paid at the correct times and also so that bills are not
paid twice by mistake. Similarly, a business needs to keep track of cash and cheques received from customers. Generally, all these
things are the concern of bookkeeping.

Accounting builds on the bookkeeping information, interpreting it, compiling reports, year-end accounts, tax returns, budgeting
and carrying out financial analysis and so on.