Differentiate between Accounting and Bookkeeping.

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Expert Solution

Bookkeeping means activity of keeping the financial books whereas accounting includes recording, classifying and interpreting the financial information.

During accounting process financial statement are being prepared whereas no such statements are prepared in the process of bookkeeping.

Accounting requires some special skills and knowledge about the accounting whereas bookkeeping not required any special skills.

As accounting requires special skills therefore skills regarding analysis of the information is required in accounting whereas no such analysis skills are required in bookkeeping.

Because of accounting the management can take business decision based on the the information gathered in accounting whereas the management cannot take any decision from the information gathered in bookkeeping.

The main objective of the book keeping is to record the financial transaction properly whereas the main objective of accounting is to prepare the financial statement and communicate this statement the relevant authorities such as auditors.

Bookkeeping process can be looked after by any accountant with basic knowledge whether accounting process requires special knowledge and education regarding accounting.

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ekkarill92 answered 1 year ago

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