A bookkeeper’s responsibilities are mainly transactional, gathering and entering financial transactions. This is because both deal with financial data. Accounting Bookkeeping are two important functions of the Finance Department that are responsible for record and tracking funds as well as creating financial statements. Accounting is the process wherein the company's financial data is summarized, and a report is prepared for the same. The Author and/or The Motley Fool may have an interest in companies mentioned. Bookkeeping is clerical in nature. For easier comparison, we’ve listed some key differences between the two below: Accounting Bookkeeping Skills Requires the ability to quickly absorb technical information, and … Trying to decide between two popular software options? Many new entrepreneurs wonder whether there is a difference between bookkeeping and accounting. Bookkeepers can also be responsible for other tasks such as reviewing expense reports and assisting in preparing a budget. If you want a quick definition, here it is: bookkeeping means recording a business’s finances, and accounting means analyzing financial records. This involves extensive data input. They’re in charge of balancing the books, which means carefully recording and monitoring assets, liabilities, and equity. They’re easy to confuse. Bookkeeping does not disclose the correct financial position however for purpose accounting helps the users in showing the true and fair view of the financial status and profitability of an organization. Accounting is a broad subject. The main difference between Bookkeeping and Accounting is that Bookkeeping is the method of recording regular business transactions, whereas Accounting is the process of recording monetary transactions relating to the business. The role of bookkeeping is essentially to keep a record of revenue received, expenditure, outstanding bills and cash flow. To correctly describe your work experience and education in your resume, it is necessary to see the difference between these two concepts: bookkeeping vs accounting. In many cases, a skilled bookkeeper can perform many of the same tasks an accountant would. The Motley Fool has a Disclosure Policy. Decision making. 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. Key Difference: Accounting is the overall finances of the company and communicating financial information of the company.Bookkeeping is the process of recording daily activities of the company. Privacy, Difference Between Financial Accounting and Management Accounting, Difference Between Cash Accounting and Accrual Accounting, Difference Between Cost Accounting and Financial Accounting, Difference Between Accounting and Auditing, Difference Between Accounting and Finance, Difference Between Single Entry System and Double Entry System. Hopefully, this post helped clarify these differences and similarities to remove any confusion. There are slight differences between accounting and bookkeeping and they are mainly some technical differences. Here are six must-have things to include in it. Balance Sheet, Profit & Loss Account and Cash Flow Statement, Single Entry System of Bookkeeping and Double Entry System of Bookkeeping. To understand what separates accounting from bookkeeping we must completely understand both categories and we must learn how they function in the everyday use. 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