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. Bookkeeping is critical to accounting as without the availability of detailed data, the authenticity of the financial statement can be challenged. Before calculating prime costs, you need to determine your direct material, direct labor, and manufacturing overhead costs. 10to8 is a cloud-based appointment scheduling software that simplifies and automates the process of scheduling, managing, and following up with appointments. While bookkeeping involves recording all the transactions in business, accounting provides the inspection of the final accounts. The difference which is marked by Bookkeeping and Accounting is very narrow. While bookkeeping and accounting are very similar in their functions, there are significant differences between these two roles. They are related, both in the financial field, and there is overlap, which is why it gets confusing. Differences in Duties between Accounting and Bookkeeping. Yes, all three terms are related, but they are actually quite different from one another. Accounting is the process by where a company’s financials are recorded, summarized, analyzed, consulted and reported on. Accountants can tell you where your money is at all times. Trying to decide between two popular software options? The Author and/or The Motley Fool may have an interest in companies mentioned. Financial Statement forms a part of the accounting process but not the bookkeeping process. Sometimes, the job of an accountant can overlap that of a bookkeeper. Difference Between Bookkeeping and Accounting What is BookKeeping. If we compare bookkeeping vs accounting, bookkeeping covers the problem of measuring the financial impact of economic activities. The difference between accounting and bookkeeping The words “bookkeeping” and “accounting” are used interchangeably, but they refer to two distinct functions. A bookkeeper’s responsibilities are mainly transactional, gathering and entering financial transactions. Difference Between Retail Banking and Corporate Banking, Difference Between Copyright and Trademark, Difference Between Purchasing and Procurement, Difference Between Micro and Macro Economics, Difference Between Developed Countries and Developing Countries, Difference Between Management and Administration, Difference Between Qualitative and Quantitative Research, Difference Between Autonomous Investment and Induced Investment, Difference Between Packaging and Labelling, Difference Between Discipline and Punishment, Difference Between Hard Skills and Soft Skills, Difference Between Internal Check and Internal Audit, Difference Between Measurement and Evaluation, Difference Between Percentage and Percentile. Both bookkeeping and accounting are crucial in managing a business finances, however the two are not the same. The general overview of the two goes as follows: Bookkeepers tend to work in a more administrative sense— recording and filing financial transactions. Keep in mind that accounting is a much broader term than bookkeeping. Imagine there’s one piece of apple pie divided into 6 slices. 7 Differences Between Bookkeeping and Accounting Accounting and bookkeeping are key business functions and are often used interchangeably.   Small businesses may have both bookkeeping and accounting functions, and they are synergistic Bookkeeping is the practice of recording your business transactions in your general ledger , the book or software program that contains all the financial transactions for your firm since its inception. You business insights based on the basis of accounting for taking managerial decision unlike bookkeeping,! 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