Difference between Accounting and Bookkeeping- Importance in Business
Accounting and bookkeeping help a business evaluate its worth and plan its future by preparing financial records at the end of a year/ quarter. Bookkeeping and accounting are inseparable, however, there is a thin line distinguishing the two. While accounting has a broader scope, bookkeeping is a part of it. Accounting and bookkeeping might seem like the untrained eye because both require basic accounting knowledge. But they are inherently different and have their own sets of advantages. What is Bookkeeping for Businesses? The process of maintaining and recording all financial transactions is bookkeeping. Bookkeeping involves summarizing and organizing all day-to-day financial transactions in the system chronologically. The financial transactions in bookkeeping include tax payments, sales revenue, loans, payroll, and other expenses and investments, etc. Bookkeeping involves transactions held in the original entry books of a business. There are original account books to record the