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Formal bookkeeping identifies with external accounting. This is the way you present your numbers to the stakeholders. Large companies are required to have their numbers checked by external Accountants. This is done to increase the reliability of the presented numbers to the shareholders.

Informal bookkeeping identifies with internal accounting. This is how an organization keeps track of its financial records. There are no specific rules which have to be followed, as this information is used to control the organization.

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SeraSmith

Lvl 8
5y ago

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