Short Course on Experts – What You Need To Know

Similarities and Differences between Accounting and Bookkeeping Many a times, and bookkeeping is mistaken for accounting. Accounting is the systematic means of identifying, maintaining documents, classification, assessing and communicating financial information over a given amount of time so as to...<br /><a class="read-more-button" href="http://raspberryketone-max.com/short-course-on-experts-what-you-need-to-know.html">Read more</a>

Similarities and Differences between Accounting and Bookkeeping Many a times, and bookkeeping is mistaken for accounting. Accounting is the systematic means of identifying, maintaining documents, classification, assessing and communicating financial information over a given amount of time so as to understand the losses and gains of a company whereas book keeping is a part of the procedure in accounting through record of financial transactions. Book keeping provides information essential for preparation of accounts. Both processes have their similarities and differences as outlined below. Similarities Records
Why not learn more about Accountants?
In both accounting and book keeping, records are very important. Book keeping requires daily noting down for simple access when it comes to preparing accounts and accounting demands the records for preparation and analyzing of financial statements.
Why not learn more about Accountants?
Classification In the daily transaction records, they are classified into different books i.e. bank book that is used to record the deposits and withdrawals made, purchase book for the records of all purchases made on credit, cash book used for the purpose of recording all cash payments such as trade payables such as trade payables and petty cash purchases and cash receipts such as trade receivables and cash sales and finally the sales book in which non-cash sales are recorded together with customer’s key details and later transferred to the customer’s account. Differences Tools utilized Accounting uses this income statement, balance sheets and even cash flow statements because its main tools while in publication keeping journals and ledgers are used. Financial statement preparation While book keeping does not require any preparation of Financial statements, accounting is largely the preparation of these financial statements such as balance sheets, profit and loss statement and cash flow statements. Management role The management is not involved in book keeping but they have a special interest in accounting records because it is useful in checking on the performance of an organization and making of future decisions based on that information. Decision making Whereas information provided by book keepers cannot be Solely used to make decisions, accounting data plays a significant part in making decision making in a company. Job role Publication keeper’s roles are largely to collect, document and Classify information relating to monetary transactions while accounting requires more skilled employees to translate and convey the consequences for decision making. Skills wanted Accounting is a little complicated hence it requires particular skills while on the other hand accounting doesn’t require any particular skills because of its simple nature. Categories Accounting is classified to cost, management and financial accounting among other categories while reserve keeping is categorized into single entry and double entry. Lots of people tend to confuse book keeping and accounting to be the exact same thing. However, since we have seen in this paper the two processes Share some common features and as well have their differences that differentiate one from the other.