Most people are often confused about the differences between Accounting and Bookkeeping. As a result, they always struggle in describing the actual differences between these closely related terms—That’s why they usually search for Accounting vs Bookkeeping. Accountants and Bookkeepers have many common goals, both work for the business in various financial stages. Bookkeeping is more concerned with financial transactions. Whereas, Accounting deals with business insights on the basis of bookkeeping information. Therefore, Accounting is subjective, but bookkeeping is transactional. This blog will give information about how Accounting and Bookkeeping are different from one another. Moreover, many accounting students face difficulty in Accounting assignments. Therefore, we provide Accounting Assignment Help service from experts to solve their problems.
What is Accounting?
Accounting is the process of recording, organizing, measuring, and understanding the business’s financial transactions. Business organizations use accounting to determine how well their company is performing, and they show this information to stakeholders. Moreover, accounting provides information on whether some business is in profit or loss, the value of the company’s assets, etc. Accounting is also useful in making various short-term and long-term decisions. The main purpose of accounting is to present a clear picture of the financial statements of a business to the people. However, the various tasks of an accountant are as follows-
- Preparation of Financial Statements
- Analyzation of journals and ledger entries.
- Providing tax advice, and
- Providing Financial Advice
What is Bookkeeping?
Bookkeeping deals with recording and organizing financial transactions during the business course. It is an essential part of accounting that is concerned with recording and classification of daily financial transactions. Various transactions such as payment of taxes, earned revenue, loan investments are recorded with bookkeeping. It is the basis of accounting. Bookkeeping mainly focuses on the maintenance of accurate records of every financial transaction of business. Business organizations use this information while making major decisions of investments. Moreover, the accuracy of the accounting process depends on the way with which bookkeeping is managed. Therefore, it is the bookkeeper’s responsibility to update financial transactions with a high level of accuracy.
What is the difference between the role of a Bookkeeper and an Accountant?
Both these professions seem very similar to an inexpert. Therefore, they generally search about Bookkeeper vs accountant job roles. Sometimes both of these do the same work. However, a bookkeeper’s primary task is to record and organize the transactions, whereas accountants provide analysis, consultation, and advice on tax-related matters.
Accounting vs Bookkeeping: The Main Differences
Following are the main point to point differences between Accounting vs Bookkeeping
|Accounting is the process of interpreting, summarising, and communicating the financial data of a Business organization.||Bookkeeping deals with recording and organizing financial transactions during the business course.|
|Data from Accounting is utilized for making major business decisions||Data from Bookkeeping is insufficient for making business decisions.|
|Accounting creates insights for a company by analyzing the data.||Bookkeeping does not require any analysis.|
|A person who handles accounting is known as an Accountant.||A person who deals with bookkeeping is known as a Bookkeeper.|
|Accounting helps to view a clear picture of the financial position of a business.||Bookkeeping does not help in showing the position of a business|
|It requires very high-level learning for understanding and analyzing the concepts of Business.||No high-level learning is needed.|
|Financial statements are important for Accounting||Financial statements are not made in Bookkeeping.|
What are the Similarities between Accounting and Bookkeeping?
Accounting and Bookkeeping are closely related to each other. Both these terms appear to be a similar profession to a newbie. Both Accountant and Bookkeeper handle the financial data. And both of them work for the common goal of increasing the financial health of a business organization. In small businesses, their job roles sometimes overlap because of the bookkeeping software, which can collect financial statements. Moreover, both these require basic accounting knowledge for entering the profession. Therefore, an untrained eye thinks them the same profession. And, they often struggle to describe Bookkeeping vs Accounting.
Educational Qualifications required for Accountant vs Bookkeeper
Usually, it needs a bachelor’s degree in accounting to get the title of an Accountant. If someone doesn’t have a bachelor’s degree in accounting, he must have a finance degree for getting this job role. Moreover, Accountants can acquire some additional certifications with their education and experience in accounting. For instance, an accountant can become a Certified Public Accountant with the help of his knowledge, experience, and education. CPA is a financial advisor who helps various businesses to plan and achieve their goals. Accountants need to qualify for the Uniform Certified Public Accountant test to become a CPA.
Bookkeepers generally do not require to possess any minimal education or certification. However, they need to be knowledgeable, followers of accuracy and should know the important financial topics. A Bookkeeper generally works under the guidance of an accountant. However, in small business organizations, the work of a Bookkeeper is overseen by the business owner.
This blog has provided information about Accounting vs Bookkeeping. Moreover, the information about the similarities, job role, and required Accounting and Bookkeeping qualifications are also mentioned. Accounting and Bookkeeping are entirely different professions. However, they have many similarities. Many people think that both of these are the same profession. Hopefully, this blog clears the vision of those people about Accounting vs Bookkeeping. Moreover, if you need any help in Accounting Assignments, you can contact our experts and avail Accounting Assignment Help at a reasonable price.
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