What is the difference between book-keeping and accounting?

Answer 1

The phrases bookkeeping and accounting are practically synonymous in the financial world. These notions, however, are distinct:

Bookkeeping

Bookkeeping is the systematic recording and categorising of an organisation’s financial transactions. Bookkeeping is considered the foundation of accounting, whereas accounting is a subset of finance.

The primary goal of accounting is to keep an accurate record of all monetary transactions in a firm. This data is used by businesses to make significant investment choices.

The bookkeeper oversees keeping accounting records.

Accounting

Accurate accounting is crucial for business since it provides dependable information about a company's success.

Accounting is the systematic method of documenting, measuring, and conveying information about a company's financial transactions.

Accounting assists in identifying a company's financial situation and communicating it to stakeholders.

It assists a firm in making immediate and long-term decisions and conveys a company's trustworthiness to the market. It is also known as business language.

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Answer 2

Bookkeeping (also book-keeping or book keeping) is the recording of all financial transactions undertaken by an individual or organization. The organization may be a business, a charitable organization or even a local sports club. Bookkeeping is "keeping records of what is bought, sold, owed, and owned; what money comes in, what goes out, and what is left." [1] A financial transaction is any event that involves money. Individual and family bookkeeping involves keeping track of income and expenses in a cash account record, checking account register, or savings account passbook. Individuals who borrow or lend money track how much they owe to others or are owed from others Accountancy (profession)[1] or accounting (methodology) is the measurement, statement or provision of assurance about financial information primarily used by managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and public agencies. The terms derive from the use of financial accounts. Accounting is the discipline of measuring, communicating and interpreting financial activity. Accounting is also widely referred to as the "language of business".[2] Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded, classified, summarised, interpreted, and communicated; for public companies, this information is generally publicly-accessible. By contrast management accounting information is used within an organisation and is usually confidential and accessible only to a small group, mostly decision-makers. Tax Accounting is the accounting needed to comply with jurisdictional tax regulations. Practitioners of accountancy are known as accountants. There are many professional bodies for Accountants throughout the world. Many allow their members to use titles indicating their membership or qualification level. Examples are Chartered Certified Accountant (ACCA or FCCA), Chartered Accountant (FCA, CA or ACA), Management Accountant (ACMA, FCMA or AICWA), Certified Public Accountant (CPA) and Certified General Accountant (CGA or FCGA). Auditing is a related but separate discipline, with two sub-disciplines: internal auditing and external auditing. External auditing is the process whereby an independent auditor examines an organisation's financial statements and accounting records in order to express an opinion as to the truth and fairness of the statements and the accountant's adherence to Generally Accepted Accounting Principles (GAAP), or