Difference Between Book keeping and accountancy?
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The six differences are as follows:
1. Bookkeeping is for recording financial transactions and what is done with financial transactions such as identifying, measuring and recording it while accounting is different because it has more to do with the financial data and what you do with the data such as interpreting, classifying it , analyzing it , reporting it and summarizing it.
2. Bookkeeping doesn’t easily allow decision makers to use it for making decisions because the data doesn’t allow them to do that. However, accounting allows decision makers to use the data for important and critical decisions because of the way the accountants provide it.
3. Bookkeeping is way of recording to keep things organized and systematic. Accounting on the other hand helps companies or individuals understand their financial position and be able to share that information with relevant stakeholders.
4. Bookkeeping does not prepare financial statements but accounting does prepare financial statements.
5. Bookkeeping can be done by nearly anyone whereas accounting requires more specialized training and skill set which is why people pursue degrees in accounting to be accountants.
6. Bookkeeping does not need analysis the way that accounting does. This is because of accounting being analytical and complex in nature.
There are more differences but I thought I should mention the main six differences that you asked for. I hope that helps!
Answer:
The biggest difference between accounting and bookkeeping is that accounting involves interpreting and analyzing data and bookkeeping does not.