Difference between bookkeeping accounting and accountancy
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1) bookkeeping is mainly related to identifying, measuring and recording financial transactions. accounting is the process of summarising, interpreting and communicating financial transactions which were classified in the ledger account.
2) management can't take a decision based on the data provided by bookkeeping. depending on the data provided by the Accountants, the management can take critical business decisions.
3) the objective of bookkeeping is to keep the records of all financial transactions proper and systematic. the objective of accounting is to gauge the financial situation and further communicate the information to the relevant authorities.
4) financial statements are not prepared as a part of this process. financial statements are prepared during the accounting process.
5) bookkeeping does not require any special skill sets. accounting requires special skills due to its analytical and complex nature.
6) the process of bookkeeping does not require any analysis. accounting uses bookkeeping information to analyse and interpret the data and then complies it into reports.
7) basically there are two types of bookkeeping single entry and double entry bookkeeping. the accounting department does preparations of a company's budgets and plans loan proposals.
8) bookkeepers are required to be accurate in their work and knowledgeable about financial topics. bookkeepers work is usually overseen by an accountant. accountant with sufficient experience and education can obtain the title of certified public Accountants (CPA).
2) management can't take a decision based on the data provided by bookkeeping. depending on the data provided by the Accountants, the management can take critical business decisions.
3) the objective of bookkeeping is to keep the records of all financial transactions proper and systematic. the objective of accounting is to gauge the financial situation and further communicate the information to the relevant authorities.
4) financial statements are not prepared as a part of this process. financial statements are prepared during the accounting process.
5) bookkeeping does not require any special skill sets. accounting requires special skills due to its analytical and complex nature.
6) the process of bookkeeping does not require any analysis. accounting uses bookkeeping information to analyse and interpret the data and then complies it into reports.
7) basically there are two types of bookkeeping single entry and double entry bookkeeping. the accounting department does preparations of a company's budgets and plans loan proposals.
8) bookkeepers are required to be accurate in their work and knowledgeable about financial topics. bookkeepers work is usually overseen by an accountant. accountant with sufficient experience and education can obtain the title of certified public Accountants (CPA).
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