Accountancy, asked by RUPESHKUMAR1485, 1 year ago

Syllabus in 11th-accountancy information about bookkeeping difference between accountancy

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Answered by Selvasiddharth
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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)


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