Bookkeeping Vs Accounting: Why should you care?

What is a bookkeeping process?

  • As the name somehow indicates the meaning of bookkeeping, the process of bookkeeping is actually to keep records. Book keeping is based on the records that one has to keep on the daily basis and it is associated with the business purposes.
  • By keeping the up-to-date records and data of business details is called book keeping, The main purpose of book keeping is that in any business it the basis necessity to keep all the data record according to the chronological order.
  • This data and record include all the details even the small details like for example the daily transaction details including all the revenue and outgoing expenses. For more details checkout this site. The daily transactions are recorded in a day book or in account balance sheet. The person who performs this whole function is known as bookkeeper.

What is Accounting process?

  • The field of accounting is much broader, it is a process to keep record of the reports and the analysis there are people in this field who track record of all the happening and they are bound to carry out these tasks they create the balance sheets, statements.
  • Accounting is associated with the entire problems that are included in measuring the financial effects of economy. If you need other information visit this link https://bench.co/syllabus/accountant-vs-bookkeeper/ here.  It also includes all the function that are associated with financial reporting , it is very important in any sort of business because the small and large scale business investors, managers, and other relay on these reports about the condition and performance of the entity.
    Bookkeeping Vs Accounting: Why should you care?

Difference between book keeping and accounting:

For a non-accountant person it is not easy to differentiate between two of them, because they both involve the process of keeping records but both of them are different topics.

  • The difference between accounting and book keeping is that in accounting one only keeps record, classify and interpret the data but in book keeping the bookkeepers process that data.
  • Book keeping is basically the part of the process accounting, like one can say that in the process of keeping records the accounting is first step and book keeping is second.
  • Book keeping is therefore the systematic recording while accounting involves book keeping, organizing, interpreting, analyzing and reporting of the whole financial information and also includes the financial statements the helps in taking the decisions.
  • The person that analyzes accounts and interprets the data is known as accountant while the book keeping process is handled by the

 

Why should you care about book keeping and accounting?

Management and measurement:

 In order to run a successful business and to manage it there must be some process of keeping a record of the performance of the business. Imagine if you have no idea what is costing you to keep your business in a flow then how you will make money. That process of keeping record is performed by the bookkeepers Melbourne.

 

Your Brain is not enough:

There are many business owners that can predict and tell that how much they done in sales, but only one brain is not enough to run a business and it is not necessary that your brain is always accurate. For keeping an accurate record of the business expenses one must need the services of the bookkeepers.

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