What is the difference between Bookkeeping and Accounting?
At first glance, the two can seem quite similar, but there are a few main differences.
Bookkeeping and accounting are both important parts of managing your finances however the tasks that bookkeepers and accountants do vary between businesses.
Definition: A bookkeeper is an accounting professional primarily responsible for maintaining a detailed record of purchases, sales, and other financial transactions. The kind of transactions accounted for and how they are recorded can vary significantly depending on the preferences and practices of different institutions or individuals.
Bookkeepers working for smaller businesses might do some basic accounting duties.
There’s often overlap, and the duties may change a lot from one business to another.
Bookkeeping focuses on recording and organising financial data.
Bookkeeping typically consists of: - Payroll - Invoicing - Receipts and bills - Recording business transactions
Accounting is the interpretation and presentation of that data to business owners and investors.
Accounting typically consists of: - Financial statements and reports - Budgets - Tax returns - Analysing business performance.