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What are the top 8 differences between bookkeeping and accounting?

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Even though there are significant similarities between bookkeeping and accounting, these two business activities are truly unique. Here’s a look at the top 8 differences between bookkeeping and accounting: • Bookkeeping is all about recording transactions, while accounting includes analyzing the transactions. • Bookkeeping does not contribute to the decision-making process, while accounting helps to plan. • Journals and ledgers are used for bookkeeping, while accounting uses balance sheets and cash flow statements. • Preparation of any financial statements is included in accounting but not in bookkeeping. • Accounting gives an overview of the finances of the company, whereas bookkeeping only provides financial data. • No particular skills are need for bookkeeping, but accounting does require special training. • Subtypes of bookkeeping include Single Entry and Double Entry, while accounting includes internal tax service, financial management etc. • Bookkeeping is the first step before you can begin accounting. Once you grasp the maid differences between bookkeeping and accounting, you will be able to streamline your business and optimize your finances.

Feb 24, 2020 • All ages