Syllabus in 11th-accountancy information about bookkeeping difference between accountancy
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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
Accounting:
Accounting requires special skills due to its analytical and complex nature
Analysis =
Bookkeeping:
The process of bookkeeping does not require any analysis
Accounting:
Accounting uses bookkeeping information to analyze and interpret the data and then compiles it into reports
Types =
Bookkeeping:
Basically there are two types of bookkeeping - Single entry and double entry bookkeeping
Accounting:
The accounting department does preparations of a company's budgets and plans loan proposals
Bookkeepers and Accountants =
Bookkeeping:
Bookkeepers are required to be accurate in their work and knowledgeable about financial topics. Bookkeepers work is usually overseen by an accountant
Accounting:
Accountants with sufficient experience and education can obtain the title of Certified Public Accountant (CPA)
PLS MARK MY ANSWER AS BRAINLIEST ANSWER....
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
Accounting:
Accounting requires special skills due to its analytical and complex nature
Analysis =
Bookkeeping:
The process of bookkeeping does not require any analysis
Accounting:
Accounting uses bookkeeping information to analyze and interpret the data and then compiles it into reports
Types =
Bookkeeping:
Basically there are two types of bookkeeping - Single entry and double entry bookkeeping
Accounting:
The accounting department does preparations of a company's budgets and plans loan proposals
Bookkeepers and Accountants =
Bookkeeping:
Bookkeepers are required to be accurate in their work and knowledgeable about financial topics. Bookkeepers work is usually overseen by an accountant
Accounting:
Accountants with sufficient experience and education can obtain the title of Certified Public Accountant (CPA)
PLS MARK MY ANSWER AS BRAINLIEST ANSWER....
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