What is the difference between accounting and bookkeeping?

Bookkeepers perform a critical function for the firms and organizations they serve. Regularly challenged to maintain precise andaccurate records, bookkeepers produce the vital reports that keep management up to date on the financial condition of their company.Bookkeepers are responsible for maintaining the "business checkbook", much like a personal checkbook. They record routinemoney transactions like customer payments into a "cash receipts journal" and checks to vendors into a "cash disbursement journal." They also process payroll. At month end they transfer or "post" the "journal" totals to the "general ledger" in preparation for financial statements prepared by the accountant. Accountants are responsible for the design and management of the financial systems that bookkeepers use. They prepare monthlyfinancial statements and tax returns at year end. Accountants may also prepare budgets for management and loan proposals for bankers; and perform cost analysis for the company's products or services.Trust, reliability and confidentiality head the list of qualities that employers look for when selecting and promoting CertifiedBookkeepers. Strong organization and communication skills are also important. Not only are bookkeepers challenged to recordroutine money transactions, to reconcile accounts and to locate misguided transations, they also must be able to paint a picture--both verbally and on paper--of all the activities within their assigned area of responsibility. understand The Difference Between Accounting And Bookkeeping ACCOUNTING: Accountingis a four stage process of recording, classifying, summarizing and the interpretation of the financial statements.The four stage process are defined below:Recording- transactions being recorded in the books of the businessClassifyingsorting and categorizing into meaningful and orderly types or mannersSummarizing- the accounting data are summarizedInterpreting- financial data are analyzed and used to assist decision making BOOKKEEPING: Bookkeeping is a part of Accounting. It is merely a mechanical aspect of recording, classifying and summarizing transaction.Therefore, keeping the books of accounts is always the theme in bookkeeping. The finer aspect of interpreting all these data intoinformation for management to act upon is excluded. What is the Difference Between Bookkeeping and Accounting? What is the difference between bookkeeping, accounting, and accountancy? When someone says they are an accountant, are theyreally a bookkeeper? Does it really matter? Bookkeeping Bookkeeping is the process of systematically recording the financial transactions of a business, so as to show how the transactionsrelate to each other. Bookkeeping is largely a mechanical process and does not involve any analysis of the financial transactions,but rather the recording of them.Traditionally, the records were kept in a book, hence the name bookkeeping. These days, bookkeeping is normally performed usinga bookkeeping software package, but the names of the books (daybook, cashbook, journal, and ledger) are still used. A bookkeeper's function is primarily one of recording transactions in the journal and posting to the ledger, and is sometimesreferred to as an accounts clerk.There are two

types of bookkeeping: single entry and double-entry. In single entry bookkeeping, the record of each transaction iscarried to either the debit or credit column of a single account. In double-entry bookkeeping, two entries of each transaction arecarried to the ledger: one to the debit side, and one to the credit side, of the corresponding account. This is so the two entries canbeused tocheckeachother. Accounting Accounting is the systematic recording, reporting, and analysis of financial transactions of a business. As bookkeeping involvesmaking a financial record of business transactions, it is true to say that the role of bookkeeping is encompassed within the scope of accounting, and the bookkeeping system used by a business would form part of the accounting system. Accounting also includes the preparation of statements concerning assets, liabilities and the operating results of a business.