Bookkeeping vs Accounting
- Bookkeeping is mainly related to the recording of financial transactions.
- Accounting is the process of summarizing, interpreting and communicating financial of the business in a systematic way.
- Bookkeeping is the subset of accounting.
- Accounting is regarded as the language of business
- Bookkeeping is the beginning stage .
- Accounting starts where bookkeeping ends.
- Decisions cannot be taken based on bookkeeping.
- Decisions can be taken on the based of accounting records.
- Preparation of Financial statements are not possible in bookkeeping.
- Financial statements are prepared on the basis of records obtained through bookkeeping.