Question

Give two difference between Book keeping and Accountancy.​

Answer 1

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In the simplest of terms, bookkeeping is

responsible for the recording of financial transactions whereas accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing the financial data. Bookkeeping and accounting may appear to be the same profession to an untrained eye.

Answer 2

Answer:

Hope it will help you....

Explanation:

Bookkeeping vs Accounting - 8 Major Differences

A major misconception regarding bookkeeping vs. accounting is that both are considered to be one profession. Though they seem to be very similar, there are some striking differences between the two. To resolve this confusion, we have listed down accounting vs bookkeeping differences here -

Definition

Bookkeeping

Bookkeeping is mainly related to identifying, measuring, and recording, financial transactions

Accounting

Accounting is the process of summarizing, interpreting, and communicating financial transactions which were classified in the ledger account

Decision Making

Bookkeeping

Management can't take a decision based on the data provided by bookkeeping

Accounting

Depending on the data provided by the accountants, the management can take critical business decisions

Objective

Bookkeeping

The objective of bookkeeping is to keep the records of all financial transactions proper and systematic

Accounting

The objective of accounting is to gauge the financial situation and further communicate the information to the relevant authorities

Preparation of Financial Statements

Bookkeeping

Financial statements are not prepared as a part of this process

Accounting

Financial statements are prepared during the accounting process

Skills Required

Bookkeeping

Bookkeeping doesn't require any special skill sets