Bookkeeping Versus Accounting:
What is the difference between bookkeeping and accounting?
There is some confusion over the difference between bookkeeping and accounting. This is due to the fact that two are related and there is no universal accepted line of demarcation between them.
In general bookkeeping is the recording of business data in the prescribed manner, this is the first phase. Much of the work of bookkeeper is of the clerical in nature. The sphere of accounting starts where the sphere of bookkeeping ends. accounting is primarily concerned with the design of the system of records, the preparation of reports and the interpretation of reports. Accountants often direct and review the work of bookkeepers.
You may also be interested in other articles from “bookkeeping chapter” chapter:
- Definition and Explanation of Bookkeeping
- Important Bookkeeping Terms
- Double Entry System of Bookkeeping
- Single Entry Vs Double Entry System of Bookkeeping
- Definition and Explanation of Accounting
- Branches of Accounting
- Functions of Accounting
- Parties Interested in Accounting Information
- Systems of Accounting – Cash System of Accounting and Accrual System of Accounting
- Bookkeeping Vs. Accounting/Difference Between Bookkeeping and Accounting
- Accounting Cycle
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